COLPAYOC GOLD PROJECTTECHNICAL REPORT Cajamarca Department, Peru Latitude: 7º 8’ 32’’ South Longitude: 78º 36’ 50” West Effective Date: December 21, 2011 Dean D. Turner, C.P.G. Exploration Geotechnologies, Inc. Littleton, Colorado Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 I TABLE OF CONTENTS Section Page 1.0 SUMMARY 1 2.0 INTRODUCTION 6 2.1 Purpose and Terms of Reference 6 2.2 Sources Of Information 7 2.3 Personal Inspection 8 2.4 Units and Currency 8 3.0 RELIANCE ON OTHER EXPERTS 9 4.0 PROPERTY DESCRIPTION AND LOCATION 10 4.1 Mineral Concessions, Option Agreements, and Royalties 11 4.2 Surface and Access Agreements 12 4.3 Exploration Permits 12 4.4 Other Agreements or Encumbrances 12 4.5 Environmental Liabilities 12 4.6 Other Factors or Risks 12 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY 14 6.0 HISTORY 17 6.1 Exploration by Newcrest Peru S.A. 18 6.2 Exploration by Granges Inc. 19 6.3 Exploration by Balaclava Mines Inc. 20 6.4 Exploration by Minsur S.A. 20 6.5 Comments on Historical Exploration Results 20 7.0 GEOLOGICAL SETTING AND MINERALIZATION 21 7.1 Regional Geology 21 7.2 Local Geology 24 7.3 Mineralization at the Colpayoc Project 29 7.3.1 Porphyry-Gold Mineralization: Daylight Gold Zone 29 7.3.2 Porphyry-Gold Mineralization: Montura Zone 32 7.3.3 Structurally Controlled Ag+Au+Mn+/Zn+/Pb+/Cu Mineralization: Cerro Rico Zone 33 7.3.4 Epithermal Silver and Polymetallic Skarn: Rayo Grande Target 34 7.3.5 Porphyry Gold-Copper Target: Alpaca Zone 36 8.0 DEPOSIT TYPES 37 9.0 EXPLORATION 39 9.1 Ground Magnetics 39 9.2 Geological Mapping and Geochemical Sampling 40 9.3 Rock Geochemistry 42 9.4 Trench Chip Channel Geochemistry 44 9.4.1 Granges Daylight Zone Historical Dozer-Cut Trench Sampling 44 9.4.2 Estrella Cerro Rico Trench Sampling 47 10.0 DRILLING 51 10.1 Discussion of Historical Drilling 51 10.1.1 Newcrest Diamond Drilling 51 10.1.2 Balaclava Reverse Circulation Drilling 53 10.2 Discussion of Estrella Diamond Drilling 54 10.3 Estrella Diamond Drilling Procedures 55 10.4 Estrella Daylight Zone Drilling 56 10.5 Estrella Drilling at Other Prospects 58 11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY 60 11.1 Sample Security 60 Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 II 11.2 Sample Preparation and Analysis 61 11.3 Quality Assurance/Quality Control (QA/QC) Program 61 11.4 Diamond Drill Hole QA/QC Results 61 12.0 DATA VERIFICATION 66 12.1 Independent Core Samples 66 12.2 Independent Field Check of Surface Sampling, and Geological Mapping 68 12.2.1 Daylight Zone 68 12.2.2 Other Prospects 71 12.3 Independent Drill Assay Database Audit 71 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING 72 13.1 Historical Metallurgical Test Work 72 13.2 Estrella’s Cyanide AA Assays 73 14.0 MINERAL RESOURCE ESTIMATES 75 14.1 Daylight Zone Drill Hole and Trench Sample Databases 75 14.2 Daylight Zone Geologic and Grade Shell Models 76 14.2.1 Definition of Porphyry Gold Mineralized Domain 76 14.2.2 Oxide-Mixed Model 78 14.2.3 Geochemical Models 79 14.3 Compositing 81 14.4 Variography 83 14.5 Block Model and Density Assignments 84 14.5.1 Block Model Definition 84 14.5.2 Density Assignments 85 14.6 Grade Estimation and Resource Reporting 85 14.7 Resource Model Validation 90 14.8 Discussion of Daylight Zone Inferred Resources 90 15.0 MINERAL RESERVE ESTIMATES 91 16.0 MINING METHODS 91 17.0 RECOVERY METHODS 91 18.0 PROJ ECT INFRASTRUCTURE 91 19.0 MARKET STUDIES AND CONTRACTS 91 20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT 91 21.0 CAPITAL OPERATING COSTS 91 22.0 ECONOMIC ANALYSIS 91 23.0 ADJ ACENT PROPERTIES 92 24.0 OTHER RELEVANT DATA AND INFORMATION 92 25.0 INTERPRETATION AND CONCLUSIONS 93 25.1 Colpayoc Exploration Potential 93 25.2 Daylight Zone Inferred Mineral Resource 95 25.3 Concluding Remarks 96 26.0 RECOMMENDATIONS 97 27.0 REFERENCES 99 CERTIFICATE OF QUALIFIED PERSON 100 DATE AND SIGNATURE PAGE 101 Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 III LIST OF FIGURES Pg. Figure 2.1 Peru Location Map – Colpayoc Project. 6 Figure 4.1 Colpayoc Land Status Map. 10 Figure 4.2 Colpayoc Community Agreement Location Map. 13 Figure 5.1 Colpayoc Property Location, Access, and Nearby Infrastructure. 15 Figure 6.1 Overview Map of Primary Area for Colpayoc Historical Exploration (taken from Reeder, 2004). Note entire map within EGC option area. 17 Figure 6.2 Newcrest Geologic Map and Au, Cu, and Mo Rock Geochemistry (taken from Newcrest, 1996). 19 Figure 7.1 Tectonic Provinces and Mineral Districts of Peru. 21 Figure 7.2 Regional Geology of the Cajamarca Region and Location of the Colpayoc Gold Project, Northern Peru. 23 Figure 7.3 Geology of the Colpayoc Project, Cajamarca District, Peru. 24 Figure 7.4 Daylight Zone Geology and Drill Collars on Magnetics. 30 Figure 7.5 EGC’s Daylight Zone Drill Hole Intercepts (EGC, 2011). 31 Figure 7.6 Montura Zone Magnetics Showing Interpreted Porphyry Intrusion and Newcrest Drill Collars. 33 Figure 8.1 Schematic Cross Section of a Porphyry System (Cox, 1986). 37 Figure 9.1a RTP Magnetic Survey Overview. 39 Figure 9.1b Analytic Signal Magnetic Survey Overview. 39 Figure 9.2 Ground Magnetics Compilation – Analytic Signal and Targets. 40 Figure 9.3 Location of EGC’s Surface Rock Geochemical Samples. 41 Figure 9.4 EGC and Historical Rock Geochemistry for Principal Target Areas: Au, Ag, Cu, Mo. 43 Figure 9.5 Log10 Au & Cu Histograms for Granges Trench Channel Samples. 45 Figure 9.6 Granges Trench Channel Sample Gold. 46 Figure 9.7 Granges Trench Channel Sample Copper. 47 Figure 9.8 EGC Cerro Rico Trench CR-01 Results. 49 Figure 9.9 EGC Cerro Rico Trench CR-03 Results. 50 Figure 10.1 Overview of Colpayoc Target Areas and Drilling. 51 Figure 10.2 Daylight Zone Drilling and Geology. 57 Figure 10.3 Estrella Daylight Zone Drill Hole and Surface Trench Gold. 58 Figure 11.1 CRM QC Plots for Gold 62 Figure 11.2 CRM QC Plots for Copper and Silver. 63 Figure 11.3 Blank QC Plots for Gold. 64 Figure 11.4 Duplicate QC Scatter Plots for Gold (arithmetic and log-log). 65 Figure 12.1 EGC Versus Independent Core Sample Scatter Plot. 68 Figure 12.2 Independent Chip Channel Sample Locations From the Daylight Zone. 70 Figure 13.1 Summary of Granges Historical Metallurgical Test Work. 74 Figure 14.1 Daylight Zone Trench Data and Drill Hole Collars. 75 Figure 14.2 Daylight Zone Log10 Histogram for Drill Hole Gold. 77 Figure 14.3 Daylight Zone 0.10 g/t Gold Domain Solid Model. 78 Figure 14.4 Daylight Zone Oxide-Mixed Solid Model. 79 Figure 14.5 Daylight Zone Log10 Histograms for Cu, Pb, Zn, and Mo. 80 Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 IV Figure 14.6 Daylight Zone Cu, Pb, Zn, and Mo Grade Shell Models. 81 Figure 14.7 Daylight Zone Log 10 Histogram for 3 meter Composite Gold. 82 Figure 14.8 Down-hole and Directional Gold Variogram Models 84 Figure 14.9 Block Model Fence Diagram Oblique View With Drill Holes and Trench Samples. 88 Figure 14.10 Block Model Example E-W Cross Sections and Level Plans. 89 Figure 25.1 Cajamarca Region Geology and Mineral Deposits (after Gustafson et al., 2004). 94 Figure 25.2 Colpayoc Property Regional Geology, Magnetic Anomaly, and Rock Au-Cu-Mo Anomaly. 95 Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 V LIST OF TABLES Pg. Table 4.1 Colpayoc Property Concessions. 11 Table 4.2 Community Surface Access Agreements for Exploration. 12 Table 7.1 Drill Hole COL-14 Results Showing Polymetallic Base Metal Mineralization 35 Table 9.1 Length Weighted Statistics for Granges Trench Channel Samples. 45 Table 9.2 Cerro Rico Significant Mineralized Silver-Gold Intervals. 48 Table 10.1 Historical Newcrest Core Hole Collar Information. 52 Table 10.2 Historical Newcrest Core Hole Drill Intercepts. 53 Table 10.3 Historical Balaclava RC Hole Collar Information. 54 Table 10.4 Historical Balaclava RC Hole Drill Intercepts. 54 Table 10.5 Estrella 2010-2011 Diamond Drill Hole Collar Information. 55 Table 10.6 Estrella Daylight Zone Diamond Drill Hole Intercepts. 57 Table 12.1 Original Drill Core Samples and Independent Duplicate Samples. 67 Table 12.2 Historical Trench Samples and Independent Duplicate Samples. 69 Table 13.1 Summary of Granges Historical Metallurgical Test Work 72 Table 14.1 Gold Directional Variogram Model Parameters 84 Table 14.2 Daylight Zone Inferred Resources at a 0.3 g/t Gold Cutoff. 86 Table 14.3 Daylight Zone Inferred Resource Sensitivity By Cutoff Grade. 87 Table 26.1 Proposed 2012 Work Program Budget for Colpayoc Project. 98 Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 VI LIST OF PLATES Pg. Plate 5.1a Daylight Zone Looking Northeast to Yanacocha Mining Complex. 16 Plate 5.1b Daylight Zone Looking Northwest Towards Cerro Rico. 16 Plate 7.1 Weathered Surface of Massive Limestone at Colpayoc 25 Plate 7.2 Montura Porphyry-Style Mineralized Stockworks. 25 Plate 7.3 Outcrop of the Daylight Porphyry with strong silica stockwork. 26 Plate 7.4 Daylight Porphyry with Poly-Phase Veinlets and Diatreme/Pebble-Dike. 27 Plate 7.5 Volcanic Rocks on Top of Cretaceous Limestone. 28 Plate 7.6 View Northeast: Strong J ointing in Limestone. 28 Plate 7.7 View West Across the Daylight Porphyry Zone. 30 Plate 7.8 Montura Gold Zone Stockwork. 32 Plate 7.9 Cerro Rico Zone J asperoid in Fault Zone. 34 Plate 7.10 Cerro Rico Zone - Trench CR-03 34 Plate 7.11 CPD-04, 21.7m, Manganese Replacement in Clastic Sedimentary Rocks and Conglomerate. 35 Plate 7.12 Rayo Grande Target, COL-14, 84.0 m, Polyphase Diatreme/Hydrothermal Breccia with Clasts of Massive Sulfide. 36 Plate 9.1 Examples of Granges Trench Exposures from October, 2011. 44 Plate 9.2 Cerro Rico Manganese Enriched Silica Replacement. 48 Plate 10.1 San Nicholas Mine, Core Storage for Newcrest Colpayoc drill core (EGC, 2010). 53 Plate 10.2 EGC Core Drilling at Colpayoc (Yanacocha in Background). 54 Plate 11.1 EGC Cajamarca Field Office, Logging, and Storage Facility. 60 Plate 12.1 Independent Drill Core Review and Sampling at EGC’s Cajamarca Facility. 67 Plate 12.2a Daylight Zone FeOx Stained Porphyry Stockwork. 69 Plate 12.2b Daylight Zone Porphyry Contact with Limestone Unit. 69 Plate 12.3 Independent Chip Channel Sampling of Daylight Zone Trenches. 70 Plate 12.4a Montura - looking south along road track exposing altered porphyry. 71 Plate 12.4b Montura - porphyry alteration in vicinity of Newcrest hole CPD-01. Sample 33079 3m @ 0.28 g/t Au and 194 ppm Cu. 71 Plate 12.4c Rayo Grande – from road cut exposing weakly altered clastic units dipping obliquely into slope. 71 Plate 12.4d Cerro Rico – silicified and Mn stained zone. Sample 33081 @ 146 g/t Ag, 1.36% Zn, and >5% Mn. 71 Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 1 1.0 SUMMARY This report was prepared in compliance with National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”) on behalf of Estrella Gold Corporation (“Estrella” or “EGC”) for the Colpayoc gold project, located in Cajamarca Department, Peru. The purpose of the report is to provide a technical assessment of EGC’s exploration results through the completion of the 2011 drill program, and provide an update to the mineral resources initially reported in 2010 (SRK, 2010). Further, this report proposes future work programs to advance this property of merit. The Colpayoc property is approximately 650 kilometers north-northwest of the capital city of Lima, Peru in the Western Cordillera’s Cajamarca Mining District of the Peruvian Andes. The regional geology is dominated by a thick sequence of Mesozoic marine sedimentary rocks that are overlain by a thick and extensive sequence of volcanic rocks of Eocene to late Miocene age. These volcanic rocks are widely altered in the vicinity of the region’s numerous epithermal and porphyry mineral deposits and mining operations, including the Yanacocha district. Yanacocha has combined production and resources of more than 70 million ounces of gold, making it the largest gold camp in South America. The Yanacocha epithermal district and many of the porphyry deposits in the region, including Colpayoc, are located within the regional scale, northeast trending Chicama-Yanacocha structural zone. This tectonic zone is over 50 kilometers wide, and has been interpreted as a major control on magmatic and metallogenic activity in the region. The early exploration successes at Yanacocha in the 1980s highlighted the region’s exploration prospectivity, with the first known work programs in the Colpayoc area occurring from 1994 to 1998. Exploration documented during this time period was conducted by Newcrest Peru S.A. (“Newcrest”), Granges Inc. (“Granges”), and Balaclava Mines Inc. (“Balaclava”). The historical exploration consisted of geological mapping, geochemical sampling, a ground magnetics survey, and reconnaissance drilling. This work resulted in the discovery of the porphyry gold prospects at the Daylight Zone and the Montura target (then called the “Southern Porphyry”), as well as skarn and associated mineralization elsewhere on the property. Colpayoc is approximately 10 kilometers west of the town of Cajamarca with a base elevation of about 3000 meters, and rolling topography reaching above 4100 meters. The climate is sub- alpine, and would allow year-round operating activity. Access, infrastructure and available workforce are adequate to support the development of a mineral deposit at Colpayoc. Estrella initially established their Colpayoc property position in 2007, and the consolidated land package consists of nine metallic mineral concessions either 100% EGC owned or under exclusive option agreement. The concessions are centered at 7º 8’ 32’’south latitude and 78º 36’ 50” west longitude, and as registered with the Peruvian government cover 5,774.49 hectares (57.74 square kilometers). The La Paskana 1 & 2 concessions are 100% directly owned by Estrella Gold Peru S.A.C., a wholly owned subsidiary of Estrella. The El Ferrol 15-18 and CH concessions are owned by a private Peruvian corporation. Estrella has an exclusive Option and Mining Lease Agreement to acquire a 100% interest in these concessions, subject to a 2% NSR royalty. The Francisco J ose IV and V concessions are owned by private individuals that are Peruvian nationals. Estrella has an exclusive Option and Mining Lease Agreement to acquire a 100% interest in these concessions, subject to a 2% NSR royalty. All of the property’s mineral Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 2 concessions are in good standing according to Peruvian mining law, and there are no back-in rights, other agreements, encumbrances, or known environmental liabilities. Estrella has the required permits to conduct its exploration programs. Estrella has conducted programs of historical data compilation and review, geological mapping, geochemical sampling, a ground magnetics survey, and drilling since initially optioning the Colpayoc property. This work has augmented and expanded on the historical work results, resulting in the establishment of the Daylight Zone inferred gold resource in 2010 and as updated in this 2011 report, as well as the advancement of new targets elsewhere on the property. These additional targets include Montura, Cerro Rico, Rayo Grande, and other mineralized zones. Together, these prospects represent a group of gold and polymetallic targets resulting from a porphyry-skarn-replacement magmatic environment that is characteristic for this region of northern Peru. The focus of EGC’s exploration programs, as well as previous operators, has been on the Daylight Zone gold porphyry deposit. The Daylight Zone porphyry is over 600 meters in diameter as delineated from magnetics data and geologic mapping. The geology consists of a quartz-biotite-feldspar porphyry with sericite-pyrite-quartz-magnetite alteration, and a younger hornblende porphyry with intense quartz-magnetite stockwork. Historic dozer cut trench results taken over approximately 2,450 meters, identified a continuous 300 by 350 meter zone of mineralization greater than 0.1 g/t gold. This gold zone, with associated anomalous copper, is bounded by contacts with limestones to the east and west, and projects under cover to the north and south. Over 2,200 meters of drilling has confirmed the continuity of the Daylight Zone gold mineralization to a depth of approximately 170 meters. This drilling consists of ten EGC core holes (1556.3 meters), one Newcrest core hole (147.6 meters), and three Balaclava reverse circulation holes (500 meters) in the prospect area. Much of the Daylight Zone has been drilled at spacings of 35 meters to over 75 meters, but the deposit’s lateral and depth extents have yet to be drill defined and remain open for expansion. The Daylight Zone mineral resource estimate was updated based upon new EGC 2010-2011 core drilling, and the historical drilling and surface trench sampling. Geologic and grade shell models were based upon: 1) drill log and surface mapped lithology and alteration, 2) a statistically derived gold mineralized envelope, and 3) three-dimensional multi-element geochemical models of metals associated with the gold mineralization (i.e., copper, lead, zinc, and molybdenum). In particular, the geochemical anomalies from drilling were strongest for copper (average=833 ppm) and zinc (average=700 ppm). The geologic and geochemical data were integrated to develop a grade shell model for the gold mineralized zone. An important component of the Daylight Zone resource estimate was the modeling of the oxide and mixed oxide-sulfide material. EGC’s oxide-mixed interpretations were cross checked against cyanide-AA versus fire assay gold ratios (CN-AA/FA) from three select drill holes. The CN- AA/FA ratios average from 74% to 86%, but there were wide ratio variations (i.e., 40-100%) in the oxide zone that may illustrate the difficulty of defining the metallurgical characteristics of the Daylight Zone from visual drill logging alone. The occurrence of near-surface lenses or zones of mixed oxide-sulfide material in the broader interpretation of the upper oxide zone is an issue that must be carefully reviewed and considered. The three meter assay composites in the Daylight Zone averaged 0.45 g/t gold. These data were characterized by a Log10 symmetric distribution that reflects a geologic population of Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 3 mineralization that is characteristic for a low grade, porphyry gold system. An inflection in the distribution occurs at approximately 1.6 g/t gold (max =2.09 g/t Au), and this was used as a cap grade. The gold mineralization is interpreted to have a significant degree of grade continuity, with maximum variogram ranges on the order of 100 meters. This is consistent with the spatial continuity expected in a porphyry system. Gold grades were interpolated with Ordinary Kriging, and entirely classified as inferred to reflect several factors that influenced the confidence in, and risks to, the resource estimate. A 2.21 density was globally assigned based upon EGC’s early stage measurements on altered Daylight Zone core samples. Colpayoc’s Daylight Zone inferred resources are reported in the table below at a 0.3 g/t gold cutoff. Daylight Zone Inferred Resources at a 0.3 g/t Gold Cutoff, December 2011. Category Tonnes (000) Gold (g/t) Gold Grams (000) Gold Ounces (000) Oxide 17,883 0.51 9,070 292 Mixed 1,397 0.47 654 21 Total 19,280 0.50 9,724 313 Totals may not sum to 100% due to rounding. Three separate validation exercises established that the Daylight Zone inferred resource estimate is robust with the given assumptions, and represents the porphyry gold mineralization as currently understood. Primary factors resulting in the inferred classification relate to the definition of the oxide-mixed zones, and the potential for oxide copper mineralization in a low grade gold deposit that would utilize conventional heap leach processing. As well, even though EGC has made progress in defining the in situ densities by alteration type, the range of density values reported is low, and requires further work to establish confident tonnage estimates. The 2011 Daylight Zone resource model defines a low grade, porphyry hosted gold deposit, with an opportunity to upgrade the resource classification, as well as add to the resource tonnes and contained gold ounces through additional drilling. In addition to the Daylight Zone, the Colpayoc property hosts at least five gold porphyry, polymetallic skarn, and polymetallic replacement exploration targets. The Montura prospect is directly to the southwest of the Daylight resource, and has outcropping quartz stockwork and altered porphyry that has only been reconnaissance tested by historical Newcrest drilling. Newcrest drill hole CPD-01 intersected 44 meters (0-44m) of 0.32 g/t gold in a 300 meter hole that has been re-logged by EGC as stockworked volcanics, silicified exoskarn and silicified intrusives to the total depth drilled. Other Newcrest holes in the Montura target encountered significant alteration and mineralization. Moreover, from the historical Newcrest rock sampling, the Daylight and Montura zones coalesce into a single gold-copper-molybdenum anomaly that covers more than a 1.5 square kilometer area. Elsewhere on the Colpayoc property there is evidence of intrusive-related replacement and skarn styles of precious and base metals mineralization at the Cerro Rico, Rayo Grande, and Alpaca prospects. These mineralized zones have undergone simple one or two-hole drill tests that returned mineralized to geochemically anomalous silver, gold, zinc, lead and copper intercepts. In total, there is approximately a six square kilometer area with various styles of alteration and mineralization that coincides with a broad, semi-circular magnetic feature over two kilometers in diameter that may represent the roots of a porphyry system at depth (see Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 4 Figure below). Perhaps most notable is that the majority of EGC’s consolidated land position remains under-explored or unexplored. Colpayoc Property Regional Geology, Magnetic Anomaly, and Historical Rock Geochemistry Anomalies. A 12 month exploration program is recommended for EGC’s Colpayoc project that totals approximately US $1.7 million. There are two principal goals of the recommended program: a) evaluate Colpayoc’s exploration potential over the entire land package of more than 50 square kilometers, and b) build on the current resource base at the Daylight Zone. The systematic property wide evaluation includes an airborne magnetics/radiometerics survey, stream sediment sampling, and geological mapping. At the prospect scale, the budget includes drilling intended to expand the gold resource at the Daylight Zone, and explore the system at depth. As well, metallurgical test work of the Daylight Zone mineralized material is a critical requirement to Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 5 establish its amenability to conventional heap leach processing. Finally, the budget includes drill and surface assessment of the Montura porphyry target as a priority, with follow-up on the other targets as additional work justifies. Estrella’s exploration programs have established Colpayoc as a project of merit that includes an inferred gold resource at the Daylight Zone with potential for resource upgrade and expansion, as well as a number of priority porphyry gold, and porphyry related skarn and replacement targets for exploration follow-up. EGC has adhered to Best Practice guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) for its exploration and drilling programs. The author’s independent verification work confirmed that the EGC exploration results are representative and reproducible. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 6 2.0 Introduction 2.1 Purpose and Terms of Reference This technical report was prepared in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”) on behalf of Estrella Gold Corporation (“Estrella” or “EGC”) for the Colpayoc property located in northern Peru (Figure 2.1). Estrella is an issuer on the TSX Venture Exchange, and its common shares trade under the symbol “EST”. The purpose of this report is to provide a technical assessment of EGC’s exploration results through completion of the 2011 drill program, and to update the mineral resources initially reported in 2010 (SRK, 2010). Further, the report proposes future work programs to advance this property of merit. Figure 2.1: Peru Location Map – Colpayoc Project. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 7 At the request of Mr. Keith A. Laskowski, President, CEO and Director of Estrella, Dean D. Turner, an independent C.P.G., was commissioned in September, 2011 to update Estrella’s NI 43-101 Technical Report for the Colpayoc project. The previous report, with an effective date of April 22, 2010, was authored by A. Moran, J . Aiken, and J . Pennington of SRK Consulting (SRK, 2010). SRK’s 2010 technical report was produced for Estrella under what was then the current name of Canadian Shield Resources, Ltd. (“Canadian Shield”). Canadian Shield changed its name to Estrella Gold Corporation in August, 2010. This report, with an effective date of December 21, 2011, substantially updates the previous technical report’s resource estimate, as well as exploration results from over a year’s additional work on the property. At EGC’s request, the scope of the report includes the following: • Compile and review the exploration and technical data related to the property current up to the effective date of the report. • Conduct a field visit of the Colpayoc property and review the geology, channel sampling sites, drill site locations, and drill core stored in Cajamarca. This review included the collection of independent check samples. • Independently update and expand on the previous NI 43-101 Colpayoc technical report in accordance with current NI 43-101 and CIM Best Practices reporting guidelines. • Provide interpretations and conclusions based upon the data and field reviews, update the mineral resource estimate, and provide work recommendations for further exploration assessment of the property. 2.2 Sources of Information This report is based on technical data and other information provided by EGC. Estrella provided access to the technical data in its possession, and in the opinion of the author, enabled a proper technical assessment of the Colpayoc property. EGC has warranted to the author that full disclosure has been made of all material information and that, to the best of EGC’s knowledge and understanding, such information is complete, accurate and true. Regardless, readers of this report must appreciate that there is an inherent risk of error in the acquisition, compilation and interpretation of mineral exploration data. Additional relevant material was acquired independently by the author from a variety of sources. The references at the end of this report list the sources consulted. This material was used to expand on the information provided by EGC and, where appropriate, confirm or provide alternative assumptions to those made by Estrella. In summary, the principal sources of information used for this report include: • SRK’s 2010 NI 43-101 technical report, • A report from EGC’s Peruvian legal counsel, Cecilia Gonzales and Patricia Gargurevich of Estudio Grau Abogados, on the title opinion and land status of the mineral concessions that constitute the Colpayoc property, • Public disclosures made by EGC, Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 8 • A series of digital data files of various types representing EGC’s exploration database compilations for the Colpayoc property, • Internal technical summaries and reports written by various EGC personnel and consultants, as well as documents obtained from previous operators that conducted work on the property, • Various other EGC source documents, email correspondence, and verbal communications with EGC personnel, and • Government reports, and published technical and scientific literature in the public domain. The true nature of any body of mineralization is never known until the last tonne of “ore” has been mined out, by which time exploration has long since ceased. Exploration information relies on the interpretation of a relatively small statistical sample of the deposit being studied; thus a variety of interpretations may be possible from the fragmentary data available. As a result, the reader should note that the statements and diagrams in this report are based on the best information available at the time, but may not necessarily be absolutely correct. Such statements and diagrams are subject to change or refinement as on-going exploration makes new data available, or new research alters prevailing geological concepts. Within this context, appraisal of all the information mentioned above forms the basis for this report. 2.3 Personal Inspection The author spent four days, from October 11th to October 14th, 2011, performing Colpayoc project reviews in the field, at the Cajamarca core and field office facility, and at EGC’s Lima office. Additional details of the author’s personal inspection are given in Section 12 (Data Verification) of this report. Another one-half day was spent at EGC’s Golden, Colorado office performing data reviews. 2.4 Units and Currency All units of weight and measurement in this report are metric, unless otherwise noted. Units of currency are in US dollars, unless otherwise specified. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 9 3.0 Reliance on Other Experts The opinions expressed in this report are based on information supplied by Estrella. The author has exercised due care in reviewing and compiling the supplied information, including a detailed review of the technical data for the Colpayoc property. The accuracy of the results, and conclusions from this review, rely on the accuracy of the supplied data. The author has relied on this information and has no reason to believe that any material facts have been withheld, or that a more detailed analysis may reveal additional material information. Technical reports, maps and data produced by EGC are of a reliable and relevant nature, and are supported by the author’s property review. However, the author does not accept responsibility for any errors or omissions in the supplied information, and does not accept any consequential liability arising from commercial decisions or actions resulting from them. The title to, and status of, the Colpayoc property was researched and an opinion provided that was current as of December 21, 2011 by EGC’s Peruvian counsel Cecilia Gonzales and Patricia Gargurevich of Estudio Grau Abogados. From this review, the concessions that constitute the Colpayoc property are in good standing as required by Peruvian mining law. The author is not qualified to provide comment on legal issues, including status of land tenure or environmental compliance associated with the property referred to in this report. Assessment of these aspects has relied on the report from Estudio Grau Abogados. This report has been prepared with the understanding that the property is, or will be, lawfully accessible for exploration, development, mining and processing, and this understanding is based on information provided by EGC and the opinion given by Estudio Grau Abogados. From the foregoing paragraph the independent author offers no opinion: a) as to the validity of the mineral title claimed and the description of the property, b) on the environmental status of the property, c) on whether the necessary permits are in place to carry out exploration and exploitation on the property, and d) on the legal status of the option agreements. The author hereby acknowledges EGC’s Peruvian team for assistance with field review, core and channel sampling, GIS and database technical support, and report preparation. This team includes Stan Myers, J ose Quijano Vargas, and Alex Tadeo (geologic staff); Milagros Malzamora (GIS and database support); and J oanna Liu, Henry Quinte, and Selene Orbegozo (administrative support). Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 10 4.0 Property Description and Location The Description of the Colpayoc Property is based upon information provided in reports from Estrella and Estrella’s Peruvian legal counsel, Cecilia Gonzales and Patricia Gargurevich of Estudio Grau Abogados. All dollar amounts are USD unless otherwise specified. The Colpayoc property is comprised of nine metallic mineral concessions that are in good standing according to Peruvian mining law. These concessions, as registered with the Peruvian government, cover 5,774.49 hectares (57.74 square kilometers). However, the concessions cover a surface area of 5154.89 hectares (51.55 square kilometers) due to the La Paskana concessions that overlap with older concessions. This overlap was necessary to secure the La Paskana boundary areas (Laskowski, personal communication, 2011). The nine concessions that make up the Colpayoc property are shown on Figure 4.1 and listed in Table 4.1 with annual tax and concession maintenance fees (i.e., alternative penalty fees for non-production). Figure 4.1. Colpayoc Land Status Map. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 11 Table 4.1. Colpayoc Property Concessions Maintenance Fees (EGC, 2011). 4.1 Mineral Concessions, Option Agreements, and Royalties The Colpayoc project mineral concessions are within the Cajamarca Mining Division, and located on Peruvian National Topographic System (NTS) map – Cajamarca 15F. The Colpayoc concessions are centered at approximately UTM E 764000, UTM N 9210000 (PSAD 56, Zone 17S) or 7º 8’ 32’’south latitude and 78º 36’ 50” west longitude. The La Paskana 1 & 2 concessions are 100% directly owned by Estrella Gold Peru S.A.C., a wholly owned subsidiary of Estrella Gold Corporation. The concession fees for 2012 total $4,560. The El Ferrol 15-18 and CH concessions are owned by Sociedad Minera Chetilla S.R.L., a Peruvian corporation. Estrella has an exclusive Option and Mining Lease Agreement to acquire a 100% interest in these concessions, subject to a 2% NSR royalty. The Option and Mining Lease Agreement was established on J uly 2, 2007 and was amended on February 2, 2009, J uly 19, 2010 and renewed and extended on December 21, 2011. The Agreement expires on December 31, 2012 and requires additional payments of $1,500,000. The concession fees for 2012 total $82,192 and the Agreement stipulates an additional $180,000 work commitment, however if all payments are made the work commitment is eliminated. The Francisco J ose IV and V concessions are owned by Francisco J ose Santolalla Myer and Ines Teresa Garcia Vidaurre, Peruvian nationals. Estrella has an exclusive Option and Mining Lease Agreement to acquire a 100% interest in these concessions, subject to a 2% NSR royalty. The Option and Mining Lease Agreement was established on J une 28, 2007 and was amended on October 26, 2007, December 29, 2008, October 1, 2009 and J uly 2, 2010. The Agreement expires on J une 28, 2012 and requires additional payments of $1,305,000. The concession fees for 2012 total $15,661 and the current agreement includes additional work expenditures totaling $980,000; the parties are in advanced negotiations to modify the work condition. In accordance with Peruvian law, once in production the mineral concessions comprising the Colpayoc property will also be subject to a federal royalty levied on the “operating profit” obtained by the mining agents. The royalty is calculated quarterly with a minimum 1%. The royalty amount is based on a profitability using a sliding scale. Royalties generally fall in the range of 1-3% but may reach as high as 12% for highly profitable operations. The amount effectively paid as royalty is deductible as an expense for corporate Income Tax. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 12 4.2 Surface and Access Agreements Surface access and mining agreements have been established with the relevant communities providing Estrella with access for exploration (Table 4.2 and Figure 4.2). Table 4.2. Community Surface Access Agreements for Exploration. Community Start Date Expiration Date Communidad Llullupuquio May 30, 2011 November 28, 2012 Sexcemayo Ltd. II August 8, 2010 August 8, 2012 Cushunga August 15, 2010 August 15, 2012 Carhuaquero September 14, 2010 September 14, 2012 The surface areas which contain the main zones of mineralization are located within the lands of the Llullapuquio Cooperative, which is a registered corporation made up of local land owners. Estrella’s Agreement with Communidad Llullupuquio allows the Company to access the property over existing roads and trails and conduct surface exploration. It also allows the construction of new roads, trenches and drill pads with the proper permits obtained from the Peruvian Ministry of Mines. 4.3 Exploration Permits Estrella has obtained a Phase I Exploration Permit which authorizes the Company to construct drill pads, based on the Declaration de Impacto Ambiental (“DIA”) dated December 2, 2010. EGC currently has permitted drill pads, and is able to conduct additional exploration drilling at this time. The Company is now in the process of extending the current DIA and applying for the Phase II permit. Estrella has commenced the studies necessary to apply for the Phase II Exploration Permit, which requires an Environmental Impact Assessment (EIA). It is anticipated by Estrella that the Phase II permit will be awarded in the 2 nd or early 3 rd quarter of 2012. 4.4 Other Agreements or Encumbrances There are no back-in rights, or other agreements or encumbrances on the properties. 4.5 Environmental Liabilities There are no environmental liabilities to which the property is subject to. 4.6 Other Factors or Risks There are not additional factors or risks that affect the exploration program at the Colpayoc project at this time, as given from the information provided by EGC and Estudio Grau Abogados. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 13 Figure 4.2. Colpayoc Community Agreement Location Map. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 14 5.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography The Colpayoc property is located in northwestern Peru’s Cajamarca Department. The project is approximately 10 kilometers west of the town of Cajamarca (Figure 5.1), and about 650 kilometers north-northwest of the capital city of Lima, Peru. There are a number of daily flights between Cajamarca and Lima, and the area can also be reached by a paved highway in five to six hours driving time from the costal town of Trujillo. The gravel road from Cajamarca to the property takes about a one hour drive in good weather. There is an internal network of roads on the property constructed by previous operators that allow access to prospects and areas of previous exploration work. The roads are unpaved and prone to washouts during the rainy season. Drill rig access to most locations on the property is possible with minor road maintenance or construction, and pad preparation. The project is located in the northern Peruvian Andes, with the base elevation at about 3000 meters, with the rolling topography reaching above 4100 meters. The climate is sub-alpine, and would support year-round operating activity. There are rainy and dry seasons, with the rainy season in this part of the Andes occurring from December to April. Temperature extremes range from greater than 25 degrees C to less than -10 degrees C. The vegetation covering the area consists of mountain grasses and shrubs, with the occasional occurrence of low scrub ‘trees’ (Plate 5.1). The region is a sparsely populated agricultural area used by local farmers for livestock grazing. The nearest airport is in Cajamarca, one of the largest cities in Peru and a hub of mining activity related to the Yanacocha complex located just over 15 kilometers due north of the city. EGC’s project housing and core logging facilities are located in Cajamarca. The local work force is adequate to support EGC’s exploration activities, and a labor force from the surrounding region could readily support a mining operation. Industrial high voltage lines cross near the property, and power for larger mining operations would be available from the national grid. Mobile phone coverage is available from Peruvian cell phone providers. The water supply in the area is sufficient to support future mining operations. Areas for potential tailings storage, waste disposal, heap leach pads, and processing plants are available within the leases currently held by Estrella. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 15 Figure 5.1. Colpayoc Property Location, Access, and Nearby Infrastructure. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 16 Plate 5.1a. Daylight Zone Looking Northeast to Yanacocha Mining Complex. Plate 5.1b. Daylight Zone Looking Northwest Towards Cerro Rico. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 17 6.0 History This section on Colpayoc historical exploration work substantially relies on the summaries by Cinits and Ewert (1997) and Reeder (2004). Modern day exploration work in the Cajamarca mining region dates back to the 1983 joint venture between BRGM and Newmont Mining Corporation (“Newmont”) that led to the discovery of the Yanacocha deposit. Yanacocha started production in 1993, and quickly became, and has remained, South America’s largest gold producer (see further discussions in Sections 7 and 8 of this report). The success at Yanacocha highlighted the region’s exploration prospectivity, with the first known work programs over the Colpayoc area occurring from 1994 to 1998. Exploration was conducted during this time period by Newcrest Peru S.A. (“Newcrest”), Granges Inc. (“Granges”), and Balaclava Mines Inc. (“Balaclava”). This earlier work provides an important foundation of data that still remains relevant for Estrella’s current work programs. The last record of pre-Estrella activity comes from Reeder’s 2004 summary report prepared for Sebastian Reidl (“Reidl”). According to Reeder, Reidl had optioned the property from Francisco J ose Santolalla and J orge J ulio Santolalla for a “series of cash payments”, but there is no record of follow-up work programs that were actually conducted. Figure 6.1. Overview Map of Primary Area for Colpayoc Historical Exploration (taken from Reeder, 2004). Note entire map within EGC option area. Montura Prospect Daylight Zone Rayo Grande Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 18 Estrella’s (then Canadian Shield’s) Option and Mining Lease Agreements were initially signed in J une and J uly, 2007. Since then, Estrella has compiled the available historic data, and conducted surface and drill exploration programs. The historical ownership of the “Colpayoc” concessions and the descriptions herein are taken from Cinits and Ewert (1997), Reeder (2004), and SRK (2010). The concessions that make up the current Colpayoc property are not identical to those historically reported. The historical work conducted by previous operators was focused on the Daylight Zone (previously known as the Northern Porphyry), and the area containing the Montura (previously known as the Southern Porphyry) and Rayo Grande prospects, all within the current EGC Colpayoc property boundary. 6.1 Exploration by Newcrest Peru S.A. (refer to Figure 6.1) The first documented exploration work at Colpayoc was conducted from late 1995 to mid-1996 by Newcrest Peru S.A. Newcrest optioned the Colpayoc Property from Compania Minera San Nicolas (“San Nicolas”) in 1995 based on positive results from a regional stream sediment sampling program (Cinits and Ewert, 1997; Reeder, 2004; SRK, 2010). Newcrest conducted surface mapping, sampling and a magnetics survey, and followed up with widely spaced, reconnaissance diamond drilling at the Montura and Daylight Zone prospects. Newcrest’s work included a detailed rock chip survey over an area covering about two square kilometers. These samples were analyzed for Au, Ag, Cu, Pb, Zn, and Mo. Although the author has performed only a cursory overview of the Newcrest results, it is clear that their rock sampling work highlighted porphyry and skarn altered mineralization enriched in gold, copper, and molybdenum from the region containing EGC’s Montura, Daylight, and Rayo Grande prospects (Figure 6.2). Newcrest also ran a ground magnetic survey over the property prior to drill testing in 1996. This geophysical dataset has subsequently been merged with more recent EGC ground magnetics survey results and re-processed. Further discussion is given in Section 9 (Exploration) of this report. Eight diamond drill holes totaling 1,241.7 meters were completed by Newcrest at the Montura, Daylight, and Rayo Grande prospects. The best results from the program returned 147.6 meters of 0.40 g/t gold (CPD-06) at the Daylight Zone, although mineralized to geochemically anomalous results were returned from the other holes. Newcrest dropped the option on the property in 1996. Newcrest’s historical drill results are discussed further in Section 10 (Drilling) of this report. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 19 Figure 6.2. Newcrest Geologic Map and Au, Cu, and Mo Rock Geochemistry (taken from Newcrest, 1996). 6.2 Exploration by Granges Inc. The Colpayoc concessions were optioned from San Nicolas in 1996 by Granges, and a program of trenching, geological mapping and sampling was conducted. The work focused on the Daylight Zone (Northern Porphyry) based on the results of Newcrest’s hole CPD-6 and the surface alteration of the outcropping diorite (SRK, 2010). Granges dozer cut trenches totaling approximately 2,450 meters, and took 1,150 chip channel samples over the Daylight Zone. This trench sampling program outlined a 300 by 350 meter gold mineralized area over the Daylight porphyry. Highlights from the trenching were summarized by Cinits and Ewert (1997), and included 0.53 g/t Au over 122 meters in trench T-7, 0.47 g/t Au over 98 meters in trench T-8, 0.65 g/t Au over 206 meters in trench T-9, and 0.51 g/t Au over 158 metres in trench T-10. The Granges trench results are discussed further in Sections 9 (Exploration) and 14 (Mineral Resource Estimates) of this report. Granges also conducted metallurgical sampling and testing. This work is discussed further in Section 13 (Metallurgical Testing) of this report. Granges dropped their option on the Colpayoc concessions later in 1996. Montura Daylight Rayo Grande GEOLOGY GOLD COPPER MOLYBDENUM Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 20 6.3 Exploration by Balaclava Mines Inc. Balaclava optioned the Colpayoc concessions from the then current owners, Compania Minera Colpayoc S.A., in 1997 and conducted surface sampling and drilling on the property (Reeder, 2004). The surface work included seven hand-dug trenches to expose the porphyry-limestone contact at the Daylight Zone for mapping, but they were not sampled (Campbell, 1997). Subsequently, Balaclava drilled three RC holes at the Daylight Zone during 1998, and intersected porphyry style gold mineralization in all three holes. The results of Balaclava’s drilling are discussed further in Sections 10 (Drilling) and 14 (Mineral Resource Estimates) of this report. Balaclava’s option was terminated after the 1998 drill program. 6.4 Exploration by Minsur S.A. Minsur S.A. reportedly optioned the Colpayoc property in 2002 and completed a limited program of sampling and trenching (Laskowski, 2011, personal communication). Trenches were constructed one kilometer northwest of the Daylight Zone, however none of the exploration results are available. Minsur withdrew from the property in 2003. 6.5 Comments on Historical Exploration Results Cinits and Ewert (1997) summarized the analytical procedures by the various historical operators. Newcrest used SGS Laboratories Peru S.A. (SGS) for the analysis of the core samples. The method used for gold was a 50 gram fire assay with AAS finish, and silver, copper, and molybdenum by AAS. Granges also used SGS in Lima for analysis of their trench samples. All samples collected by Balaclava were analyzed by Bonder Clegg Laboratories in Lima, Peru. Reeder (2004) collected independent samples during his 2003 site visit, as summarized by the following: “Six samples from the Southern Porphyry (Montura) confirmed that the gold mineralization averaged over 0.18 gram Au/tonne. Three samples taken from the Northern Porphyry (Daylight Zone) returned higher gold values, averaging 0.71 grams Au/tonne. Given that reputable companies such as Newcrest, Granges and Balaclava conducted the exploration and that the project is still at an early stage, it is the author’s (Reeder) opinion that the results obtained by the author (Reeder) are consistent with the previous work.” The author of this report notes that Cinits and Ewert (1997) also took independent samples, and Newcrest reported on their own internal QC standard sample results. The work of Reeder, Cinits and Ewert, and Newcrest is further reinforced by the current author’s independent sampling (discussed in Section 12 of this report), and tends to validate the historical results reported. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 21 7.0 Geologic Setting and Mineralization Section 7 is based on a summary provided by Estrella’s Keith Laskowksi, and his work is hereby acknowledged. 7.1 Regional Geology The Colpayoc project occurs in the Cajamarca Mining District, which is located in the Western Cordillera of the Peruvian Andes. The Western Cordillera is situated between the Coastal belt, containing the Mesozoic Coastal Batholith, and the Eastern Cordillera, primarily formed from extensive sequences of younger volcanics that form the high peaks of the Andes mountain chain (Figure 7.1). Figure 7.1. Tectonic Provinces and Mineral Districts of Peru. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 22 The geology of this part of the Western Cordillera contains a thick sequence of Mesozoic marine sedimentary rocks. In the Cajamarca region there is more than 2000 meters of Lower to Upper Cretaceous strata, beginning with arenites of the Collarisquizga Formation, overlain by increasingly calcareous strata of the Inca, Chulec, Pariatambo, Yumagual, and Mujarron Formations, and ending with the Cajamarca Formation (Benavides-Caceres, 1956). The Inca and Chulec Formations are primarily a series of calcareous sandstones, sandy limestones, calcareous shales and marls with occasional interbedded iron rich, fine-grained shales. The Pariatambo Formation is made up of black, carbonaceous shales and thin bedded limestones which are overlain by medium bedded, dark grey limestones and fossiliferous shales in the Yumagual, Quilquinan and Cajamarca Formations. These units are overlain by a thick and extensive sequence of volcanic rocks of Eocene to late Miocene age. The area of volcanic rocks includes several volcanic fields of pyroclastic, flow and domal rocks of rhyolitic to andesitic composition. Most of the volcanic rocks are widely altered in the vicinity of the region’s numerous mineral deposits and mining operations. The Cajamarca region hosts 14 porphyry deposits and 19 epithermal deposits of varying importance, some of which are portrayed in Figure 7.2. The volcanic host rocks are mainly Miocene age, however the most reliable age dates are from the Yanacocha volcanic complex, which is dated at 12.5–11.8 Ma. The Yanacocha district has combined production and resources of more than 70 million ounces of gold, making it the largest gold camp in South America (Teal & Benavides, 2010). Volcanic rocks post-dating the altered and mineralized rocks are scattered across the region, and appear to be younger than the 9.0 Ma Quechua volcanic event. All of the mineral deposits have a dated age of formation ranging from 19–10 Ma (Noble and McKee, 1999). The epithermal Au systems, such as Yanacocha dated at about 11.0 Ma, seem to be younger than the mid-Miocene dates of 16-15 Ma for some of the porphyry systems within the area, such as Minas Conga. The Yanacocha epithermal district and many of the porphyry deposits are located along the southeast margin of the volcanic field, within the regional scale northeast trending Chicama-Yanacocha structural zone. The 50 kilometer wide Chicama-Yanacocha tectonic zone has been interpreted as a major control on magmatic activity in the region. The Colpayoc gold project is located within this highly mineralized belt that extends southwest from Yanacocha. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 23 Figure 7.2. Regional Geology of the Cajamarca Region and Location of the Colpayoc Gold Project, Northern Peru. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 24 7.2 Local Geology The geology of the Colpayoc project area has been mapped by INGEMMET, a Peruvian government agency, and supplemented by detailed geological mapping by prior owners of the property (Figure 7.3). Estrella geologists have completed initial mapping at more detailed scales in the Daylight and Cerro Rico zones, and have updated the 1:10,000 scale mapping in select areas. The Colpayoc property is underlain by a Cretaceous marine sedimentary sequence including massive, thick bedded limestone in outcrop (Plate 7.1), which has been folded into a northwest trending syncline verging both northwest and southeast. Figure 7.3. Geology of the Colpayoc Project, Cajamarca District, Peru. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 25 Plate 7.1 Weathered Surface of Massive Limestone at Colpayoc. Folding was followed by, or contemporaneous with, a mid-Miocene magmatic event that emplaced a granodioritic intrusive complex into the limestone sequence. Ground magnetics outline an area roughly two kilometers in diameter that indicate the intrusive is present at depth underlying much of the southern portion of the property. Historic scout drilling by Newcrest demonstrates that some areas along the perimeter of the magnetic anomaly (granodiorite intrusion) have formed exoskarn alteration in the host limestone (Plate 7.2). Plate 7.2 Montura Porphyry-Style, Mineralized Stockworks. The magnetics data also suggests that multiple diorite porphyry stocks have intruded the granodiorite. However, only the Daylight Zone and the Montura porphyries have been Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 26 confirmed. The Daylight Zone porphyry is about 600–800 meters in diameter as interpreted from the magnetics data and surface geologic mapping (Plates 7.3 and 7.4). The Daylight Zone contains a quartz-biotite-feldspar porphyry with sericite-pyrite-quartz-magnetite alteration, and a younger hornblende porphyry with intense quartz-magnetite stockwork. The Montura porphyry target is located 600 meters southwest of the Daylight Zone, and is about 300 meters in diameter based on the magnetics data. The magnetics data, surface geochemistry and alteration strongly suggest the Montura and Daylight porphyries may be connected at depth. The Alpaca and Crater Zones have similar magnetic signatures, and may also be connected at depth. It remains a possibility that all four, the Daylight, Montura, Alpaca and Crater porphyries may merge at depth as a large porphyry system. The magnetics data also suggests that buried intrusives may also be present at the Cerro Rico and Rayo Grande zones, as well as other areas. Plate 7.3. Outcrop of the Daylight Porphyry with Strong Silica Stockwork. The Daylight porphyry is cut by a series of east-northeast trending, northwest dipping andesitic dikes, which occupy fault zones. The andesite dikes are altered, but do not contain gold mineralization, indicating that they are post-mineral, but experienced the waning stages of the hydrothermal alteration system. Importantly, they demonstrate a fourth phase of magmatic activity. The restricted region extending from the Cerro Rico Zone eastward contains the remnants of continental rhyodacitic volcanic rocks (Plate 7.5). The volcanics are about 50–100 meters in thickness, and are similar in appearance to the volcanics mapped south of the Colpayoc property. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 27 The volcanics are weakly altered where associated with mineralized fault zones such as at the Cerro Rico Zone. These volcanics represent the youngest rock type on the property, and exhibit a flow breccia texture near the base and a well layered, ash-flow texture in the upper portions. The local structure at Colpayoc exhibits well developed, belt-parallel northwest trending faults and folds as evidenced by the sedimentary sequence, and readily apparent in the stockwork vein orientations in the Daylight porphyry. Northwest structures are cut by a set of northeast trending “transverse” faults which parallel the Chicama-Yanacocha structural trend through the Yanacocha district. These northeast structures are also common within the stockwork zone at Daylight, and clearly evidenced in the high resolution imagery which shows offsets of the sedimentary strata. The northeast trending structures are focused and well developed in some areas, and well documented in the limestone sequence where “piano-key” jointing is evident (Plate 7.6). The youngest structural events are a limited number of north-northwest structures that appear to be extensional in nature, resulting in down-dropping of the limestone on the east side of the Daylight Zone, possibly dropping part of the porphyry system beneath the limestone cover. Plate 7.4. Daylight Porphyry with Poly-Phase Veinlets and Diatreme/Pebble- Dike. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 28 Plate 7.5 Volcanic Rocks on Top of Cretaceous Limestone. Plate 7.6. View Northeast: Strong Jointing in Limestone. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 29 7.3 Mineralization at the Colpayoc Project The Colpayoc project hosts multiple exploration targets within a property position that covers over fifty square kilometers. At least three distinctive types of mineralization have been identified. Most of the work has been focused on the porphyry gold mineralization located in the southeastern portion of the property at the Daylight and Montura Zones. Exploration potential also exists for skarn-hosted silver-gold-copper mineralization at Rayo Grande and Alpaca. Structurally controlled polymetallic mineralization is another target type. Silver-gold-zinc-lead- copper-manganese replacement mineralization occurs within and adjacent to silicification (jasperoid formation) in a northwest trending fault zone which has been traced for more than two kilometers at the Cerro Rico Zone. 7.3.1 Porphyry-Gold Mineralization: Daylight Gold Zone The Daylight Zone hosts mineralization within an altered diorite intrusive characteristic of a porphyry system, and is in contact with Cretaceous calcareous sedimentary rocks on two sides. The intrusive host rock is a plagioclase- hornblende porphyry which is exposed over 450 meters east-west and about 500 meters north-south. The contacts with surrounding limestone are likely a combination of faulted and intrusive, but the contacts are obscured, and their true nature is the subject of ongoing interpretation. Daylight Zone mineralization occurs as a classic gold porphyry system, hosted within an altered plagioclase-hornblende porphyry intrusion. Magnetics data indicates the intrusion may extend several hundred meters to the east of the contact with the limestone, and the porphyry system likely extends beneath cover rocks in several other areas. The porphyry contains three types of stockwork and veining, including early quartz-sulfide, sulfide, and quartz-magnetite/magnetite stockworks. The entire gold (copper) mineralized zone is hosted within sericite-clay iron-oxide altered intrusive with variable intensity of stockwork and veining. The intrusion and mineralized zone are oxidized to depths ranging from 50 to over 150 meters, and the majority of the rocks are oxidized products of mainly phyllic/sericite-pyrite alteration. At the surface, sericite alteration contains a significant component of kaolinite resulting from the weathering of pyrite and sericite. The porphyry contains an 80–100 meter diameter diatreme breccia near the center of the outcropping area, which is also typical of a porphyry system. The Daylight intrusion has early quartz+/pyrite+/chalcopyrite stockworks, pyrite stockworks, and younger disseminated and stockwork magnetite alteration zones. Gold is closely correlated with magnetite content, making ground magnetics an important exploration tool. Historic trench results (~2,450 meters) identified a continuous zone of anomalous gold mineralization approximately 300 meter wide (east-west) by 350 meters long (north-south), bounded by contacts with the adjacent limestones (Plate 7.7). Gold values from trench chip channel samples within, and beyond the limits of the Daylight Zone, averaged 0.26 g/t Au, with a maximum of 2.99 g/t Au. The surface sampling also returned anomalous Cu averaging 535 ppm, with a maximum of 0.61%. EGC and historic drilling totaling over 2,200 meters confirmed the continuity of the mineralized zone to depth, averaging 0.43 g/t gold and 833 ppm copper within the Daylight Zone (Figure 7.5). The gold mineralization remains open for expansion laterally and to depth. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 30 Plate 7.7. View West Across the Daylight Porphyry Zone. Figure 7.4. Daylight Zone Geology and Drill Collars on Magnetics. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 31 Figure 7.5. EGC’s Daylight Zone Drill Hole Intercepts (EGC, 2011). Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 32 7.3.2 Porphyry-Gold Mineralization: Montura Zone The Montura gold-porphyry system identified is approximately 600 meters southwest of the Daylight Zone. Montura contains a strong ground magnetics anomaly resulting from disseminated and veinlet magnetite within a 300 by 250 meter porphyritic intrusive body outlined by the magnetics (Figure 7.6) The porphyry has well-developed quartz and iron-oxide stockwork with variable magnetite veinlets and disseminated magnetite within sericite-clay-iron oxide altered porphyritic intrusive (oxidized) (Plate 7.8). Newcrest’s reconnaissance rock sampling defined a coherent Au-Cu-Mo anomaly over Montura, with anomalous gold samples returning from 0.1 g/t to over 1.0 g/t Au. Newcrest drilled six core holes to the north of the main target area and intersected porphyry and skarn Au-Cu mineralization, including CPD-01 that returned 44 m @ 0.32 g/t gold (from 0-44.0 m). Newcrest’s scout drilling did not test the magnetic high that is interpreted by EGC to constitute the core of the Montura porphyry gold system (Figure 7.6). The Montura Zone is a distinct porphyry target, but may be part of a larger porphyry system that coalesces with the Daylight Zone to the northeast, and is a high priority target for follow-up. Plate 7.8. Montura Gold Zone Stockwork. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 33 Figure 7.6. Montura Zone Magnetics Showing Interpreted Porphyry Intrusion and Newcrest Drill Collars. 7.3.3 Structurally Controlled Ag+Au+Mn+/Zn+/Pb+/Cu Mineralization: Cerro Rico Zone The Cerro Rico Zone is located two kilometers northwest of the Daylight Zone and contains folded Cretaceous limestone, locally in fault contact with younger altered volcanic rocks. The fault zone has been traced at least 2.5 kilometers along its west-northwest strike, and ranges from 1–40 meters in width. The zone exhibits silicification, localized jasperoid development, and base-metal replacement mineralization (Plate 7.9). Estrella completed a trenching program on a small portion of the northwest trending structural zone, based on high-grade hand samples collected at surface. High-grade silver and significant gold values were encountered, including trench CR-01 with 8m @ 372.5 g/t Ag and 3.9 g/t Au, and trench CR-03 with 5.8m @ 872.6 g/t Ag and 0.7 g/t Au. Two drill holes were completed in the vicinity of the high grade silver mineralization on the southeast end of the structural zone, with variable results. The Cerro Rico Zone is a polymetallic replacement target that remains prospective for follow-up exploration. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 34 Plate 7.9. Cerro Rico Zone Jasperoid in Fault Zone. Plate 7.10. Cerro Rico Zone - Trench CR-03 7.3.4 Polymetallic Skarn: Rayo Grande Target The Rayo Grande Zone is located 1.5 kilometers west of the Daylight Zone and is defined by a strong magnetic anomaly interpreted as a skarn target. The Rayo Grande surface geology consists of Cretaceous clastic and calcareous sedimentary rocks. No significant detailed mapping or surface sampling has been completed in the area to date. Newcrest drilled one core hole (CPD-04), located on the southwest side of the magnetic anomaly, which intersected clastic Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 35 sedimentary rocks containing significant silver mineralization near surface; the silver mineralization was associated with high concentrations of manganese (Plate 7.11). The hole was drilled to a depth of 102.5 meters and returned 42.0 m @ 54 g/t Ag (from 6.0- 48.0 m), but has not been followed-up. Plate 7.11. CPD-04, 21.7m, Manganese Replacement in Clastic Sedimentary Rocks and Conglomerate. Estrella drilled core hole COL-14 about 400 meters north of CPD-04 within the magnetic anomaly. The drill hole intersected calcareous sedimentary rocks with broad zones of oxidation and silicification associated with fault zones. The hole also intersected several anomalous zones of gold and polymetallic base metal mineralization (Table 7.1). Table 7.1. Drill Hole COL-14 Results Showing Polymetallic Base Metal Mineralization. From To Interval Gold – g/t Lead - % Zinc % Copper % 26.5 28.0 1.5 m 0.09 g/t 0.21% 77.2 88.0 10.8 m 0.17 g/t 0.13 % 141.5 147.5 6.0 m 0.21 g/t 0.16 % 0.18% 150.8 157.0 6.2 m 0.23 g/t 0.11% 0.29% The drill core had irregular zones of hornfels development, and variably silicified and oxidized fault zones that host the mineralized intervals. The core also contained two narrow zones of structurally controlled diatreme breccia from 77.2–88.0 meters with elevated gold and zinc. The breccia has poly-phase angular clasts of silicified sedimentary rocks, including some massive pyrite fragments, indicating the presence of a hydrothermal breccia and potential mineralization at depth (Plate 7.12). EGC’s single core hole at Rayo Grande contains evidence of copper, zinc, lead, and gold mineralization possibly related to a skarn or porphyry target at depth. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 36 Plate 7.12. Rayo Grande Target, COL-14, 84.0 m, Polyphase Diatreme/Hydrothermal Breccia with Clasts of Massive Sulfide. 7.3.5 Porphyry Gold-Copper Target: Alpaca Zone The Alpaca Zone is located approximately 300 meters north of the Daylight Zone and is defined by a magnetic anomaly that is approximately 300 meters long by 50 meters wide. At the surface, the geology consists of weakly altered massive limestone. Two EGC drill holes were completed to test the magnetic anomaly. Hole COL-13 was drilled in the northern portion of the anomaly and was completed to a depth of 162.3 meters entirely within limestone. Yet the hole did intersect broad zones of variably silicified and oxidized fault zones containing elevated gold, lead and zinc. The assays included 1.4m @ 1.31 g/t Au, 3.1 g/t Ag, and 0.57% Pb, 6.1m @ 0.40 g/t Au, 0.22% Pb, and 0.09% Zn, as well as 5.9m @ 0.29 g/t Au, 0.11% Pb, and 0.05% Zn. Hole COL-15 was completed approximately 100 meters south and 40 meters east of COL-13 intersecting limestone over its entire length, and encountered only one interval of elevated zinc from 9.2–12.5 meters. EGC’s drilling at Alpaca identified structurally controlled zones of elevated gold, zinc, and lead, indicating that the area was subjected to hydrothermal fluid flow. Although the alteration and mineralization was limited within narrow zones of hornfels and marble, these results are permissive to suggest a porphyry source at depth. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 37 8.0 Deposit Type Section 8 is primarily based on a summary provided by Estrella’s Keith Laskowski, and his work is hereby acknowledged. Colpayoc hosts gold (copper) porphyry deposits with associated skarn and replacement mineralization that are typical of the metallogenic environment in northern Peru. These deposits are often found in intermediate intrusive systems, such as diorites. The porphyries of the Cajamarca region occur as a series of high-level intrusive apophyses and related zones of tectonism and brecciation that have been exposed to hydrothermal solutions and emplacement of multiple zones of stockwork fractures. Porphyry deposits are present along the entire axis of the South American Cordillera. Two age- differentiated Cretaceous-Tertiary porphyry belts are present in Peru and Chile. In general, the porphyry deposits in Chile are copper rich, with relatively low gold content. The proportionate gold content increases further north along the Andes, with the northern Peru porphyries containing a significantly higher gold credit. Figure 8.1 Schematic Cross Section of a Porphyry System (Cox, 1986). The Colpayoc porphyry system is similar to a group of gold-enriched porphyry deposits currently undergoing exploration or in production throughout northern Peru and Colombia. These deposits include the Cerro Corona deposit (Goldfields, Peru), located about 40 kilometers north of Colpayoc. Other analogous deposits include La Colossa (AngloGold Ashanti, Colombia) and La Mina (Bellhaven Copper & Gold, Colombia). In each of these deposits, gold mineralization is associated with a <1.5 kilometer diameter porphyry which cross-cuts a larger, slightly older intrusive, also of dioritic composition. Gold is intimately associated with a Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 38 younger, hydrothermal event that produces disseminated and stockwork/fracture hosted magnetite with gold mineralization. Gold porphyry deposits generally are on the order of 50– 150 Mtonnes in size, restricted due to the relatively constrained pipe-like nature of the systems. These deposits are considerably smaller than the porphyry copper systems of the southwestern United States and Chile, which are typically >300 Mtonnes. Although references have been made between Colpayoc and deposits of the nearby Yanacocha district, there are fundamental distinctions. Yanacocha is a volcanic hosted epithermal gold system, capping a gold-copper system at depth (Gustafson et. al., 2004). In contrast, Colpayoc is a gold-copper porphyry system that intrudes the Mesozoic sedimentary rocks of the region. The difference between the epithermal mineralization at Yanacocha and the porphyry mineralization at Colpayoc could be due to the depth of erosion and corresponding vertical exposure of the systems. The Daylight and Montura Zones have many of the characteristics of a classic gold porphyry system, and are hosted within altered plagioclase-hornblende porphyry intrusions. The porphyries contain three types of stockworking and veining, including early quartz-sulfide, sulfide, and quartz-magnetite/magnetite stockworks. The gold mineralized zones are hosted within a sericite-clay iron-oxide alteration suite. At the surface, the porphyries display sericite alteration combined with a significant component of kaolinite resulting from the weathering of pyrite and sericite. The Daylight porphyry is the best understood, and has early quartz±pyrite±chalcopyrite and pyrite stockworks, in addition to younger disseminated and stockwork magnetite alteration zones. The Montura Zone contains disseminated and veinlet magnetite within a porphyritic intrusive body. The gold is closely correlated with magnetite content at both the Daylight and Montura prospects. Colpayoc is being explored principally for the porphyry gold deposit type, as well as associated polymetallic skarn and replacement deposit types. The porphyry mineralization has been drilled at the Daylight and Montura prospects. In addition, skarn style mineralization is targeted at the Montura, Alpaca and Rayo Grande Zones. Structurally controlled polymetallic replacement style mineralization is located at the Cerro Rico Zone and distal to the central porphyry targets. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 39 9.0 Exploration Estrella has conducted programs of historical data compilation and review, geological mapping, surface geochemical sampling, a ground magnetics survey, and drilling since originally optioning the Colpayoc property in 2007. This work has augmented and expanded on the historical work results, resulting in the establishment of the Daylight Zone gold resource and the advancement of new targets elsewhere on the property. These additional targets include Montura, Cerro Rico, Rayo Grande, and other mineralized zones. Together, these prospects represent a group of mineralized targets typical of a porphyry-skarn-replacement geologic environment. 9.1 Ground Magnetics The initial step taken by Estrella to assess the property wide exploration potential for porphyry targets was to conduct a ground magnetics survey focused over the Daylight Zone, with partial coverage of the Montura Zone. Approximately 68 line kilometers were surveyed by Fugro Ground Geophysics of Lima, Peru in J une, 2008. The lines were oriented northeast-southwest and spaced at 200 meters, with station spacings of 10 meters. Subsequently, EGC’s data was re- processed and merged with a re-processed version of Newcrest’s historical (1995) ground magnetics survey. Newcrest’s survey consisted of 36 line kilometers oriented north-south, with 100 meter line spacing and 10 meter station spacing. The re-processing, merging, and filtering of the combined magnetic datasets was conducted by Lima based independent geophysical contractor B. Lubbe in 2011. Lubbe produced a number of processed products, including RTP and 3D analytic signal grids (Figure 9.1). Figure 9.1a. RTP Magnetic Survey Overview. Figure 9.1b. Analytic Signal Magnetic Survey Overview. Lubbe identified a series of magnetic anomalies for follow-up (Figure 9.2). Lubbe noted that the Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 40 magnetic high anomalies at the Daylight and Montura Zones were coincident with the porphyry alteration identified from surface work and drill testing, and may also represent peripheral skarns. Lubbe suggested that the magnetic high at the Rayo Grande, Cerro Rico and Crater Zones were also possibly related to intrusive driven skarn alteration. Going forward, EGC’s ground magnetics dataset will continue to be an important exploration tool for identifying porphyry and related target types at Colpayoc. Figure 9.2. Ground Magnetics Compilation – Analytic Signal and Targets. 9.2 Geological Mapping and Geochemical Sampling Estrella has undertaken surface geologic mapping and geochemical sampling programs at various scales over the Colpayoc property. The priority has been at the Daylight Zone and Cerro Rico, although work has been conducted at Rayo Grande and other target areas as well. Most recently, follow-up work has focused on the Montura porphyry zone; the results from this program were pending as of the effective date of this report. The Colpayoc geology consists of Cretaceous aged limestone and clastic units, as well as the Tertiary age intrusives that cut, and volcanic units that overlie, these sequences. These geologic units have been identified and mapped at various scales by previous operators, as well as by Estrella. At the small scale, EGC’s geologic mapping has consisted of field checking of historical geologic maps, and augmenting and refining these maps with updated field Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 41 observations at 1:10,000 scale. At the larger scale, special attention was given to updating the Daylight Zone mapping at 1:1000 scale, as well as 1:500 scale trench mapping at Cerro Rico. The geological map products are included in EGC’s map folio sets. As with the previous geological mapping, Estrella has used historical data as a base for additional geochemical sampling. EGC has collected on the order of 114 rock samples property- wide and 150 trench chip channel samples at Cerro Rico. In combination with the EGC’s historical data compilation, the rock database consists of 453 samples (Figure 9.3). Figure 9.3. Location of EGC’s Surface Rock Geochemical Samples (Top) and Combined with Historical Samples (Bottom). Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 42 EGC also collected 282 soil samples, however most samples were collected from the incorrect soil horizon and the results were deemed unreliable (Laskowski, 2011, personal communication). The soil data is not considered further in this report, but additional review is suggested to determine if there is salvageable information in this dataset. 9.3 Rock Geochemistry EGC’s rock geochemical compilation for Colpayoc spans multiple sampling campaigns that started with Newcrest in 1995. The rock sampling has been directed to the principal target areas, which span from the Daylight and Montura Zones in the south, to Cerro Rico in the north. For the EGC work, rock sample weights were commonly between 3 to 5 kilograms. The rock sampling protocols were implemented to provide representative, unbiased samples to characterize the mineralized zones. Field notes on the local geologic and structural conditions were typically recorded and accounted for during sample acquisition. There was continuous professional supervision of the sampling programs by EGC geologists. For the historical rock samples, EGC’s work, as well as independent sampling by the author and others tends to confirm the results generated by previous operators. Although there are inherent issues related to merging various generations of geochemical sampling, the exercise was useful in determining broad overall trends related to mineralization (Figure 9.4). From the Colpayoc rock sampling, coherent copper (100-250 ppm) and molybdenum (10-25 ppm) anomalies distinctly outline the Daylight and Montura porphyry targets. The Daylight and Montura rock samples are also gold enriched, defining coincident, but more tightly defined anomalies at 100 ppm (0.1 g/t). Cerro Rico and Rayo Grande are marked by anomalous silver. In the case of Cerro Rico, the northwest trending silver anomaly is higher grade at 75-100 ppm, reflecting the structurally controlled replacement mineralization at the contact between the limestone and felsic volcanic units. At Rayo Grande, the silver anomaly at 10-25 ppm is broader, and is interpreted to reflect underlying porphyry and/or skarn related mineralization at depth. Taken as a whole, the Colpayoc rock data outlines porphyry, skarn and replacement type targets for exploration follow-up. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 43 Figure 9.4. EGC and Historical Rock Geochemistry for Principal Target Areas: Au, Ag, Cu, and Mo (DZ = Daylight Zone, M=Montura, CR = Cerro Rico, and RG = Rayo Grande). DZ M CR RG DZ M CR RG DZ M CR RG DZ M CR RG Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 44 9.4 Trench Chip Channel Geochemistry Colpayoc trench chip channel sampling is represented by the historical work conducted by Granges on the Daylight Zone, and Estrella’s more recent program at Cerro Rico. 9.4.1 Granges Daylight Zone Historical Dozer-Cut Trench Sampling EGC has compiled the historic Granges Daylight Zone trench chip channel sampling data, and registered the locations to the current base maps through field checking and verification. Confirmation of the data by independent sampling, and agreement with near-surface EGC core drilling results establish that the Granges data is relevant for exploration level assessment. EGC’s compilation of the Daylight Zone trenching consists of 1,150 samples totaling approximately 2,450 meters of chip channel sampling. Most of the trenching is oriented west- northwest, but there are shorter trenches oriented north-northeast, particularly at the northern and southern contacts of the porphyry system. The standard channel sample length was 2 meters, with 4 meter samples taken toward the contact of the altered and mineralized porphyry with surrounding wall rocks. The average sample length was 2.1 meters. The dozer-cuts remain in good condition, and provide readily accessible exposures for mapping and sampling (Plate 9.1). Plate 9.1. Examples of Granges Trench Exposures from October, 2011. EGC’s Granges database has assay values for gold and copper, as well as silver, lead, and zinc. The length weighted statistical summaries for all five elements are given in Table 9.1. From the statistics, the average for gold is 0.26 g/t and for copper 535 ppm. The samples are also enriched in lead (average =281 ppm) and zinc (average =567 ppm). Of note, the silver data has higher grade outliers (i.e., >10 ppm, up to 145 ppm Ag) which may or may not be meaningful; this should be followed up with further review. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 45 Table 9.1. Length Weighted Statistics for Granges Trench Channel Samples. The Log10 histograms for gold and copper clearly display bimodal distributions (Figure 9.5). These populations are interpreted to represent the mineralized and altered porphyry system versus the less altered wall rocks (Figures 9.6 and 9.7). Note from Figure 9.7 that weak copper mineralization continues outside of the 0.1 g/t gold envelope, particularly to the south and west. The Granges Daylight Zone sampling is an important dataset, and was used for the resource estimate discussed in Section 14. Figure 9.5. Log10 Au & Cu Histograms for Granges Trench Channel Samples. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 46 Figure 9.6. Granges Trench Channel Sample Gold. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 47 Figure 9.7. Granges Trench Channel Sample Copper. 9.4.2 Estrella Cerro Rico Trench Sampling The Cerro Rico Zone is located two kilometers northwest of the Daylight Zone. The geology consists of folded Cretaceous limestones in variable fault contact with younger altered volcanic rocks. The fault zone is entirely hosted in limestone away from the remnant volcanic rocks, and has been traced on surface for at least 2.5 kilometers along its west-northwest strike. The zone exhibits variable alteration, with jasperoid development and base-metal silica replacement mineralization (Plate 9.2). Estrella conducted trench chip channel sampling totaling 231.8 meters from three trenches. The trenches are located over a distance of 260 meters of strike length, with two trenches (CR-01 and -02) 58 meters apart, and the third trench CR-03 located 220 meters to the southeast. The hand- dug trenches were excavated in an area containing historic manganese prospect pits. The trenches were oriented northeast and east-west to yield approximate true width intercepts. In total, 100 continuous chip channel samples were taken, with an average length of 2.3 meters. High-grade mineralized intervals are given in Table 9.2 and Figure 9.8 and 9.9. In addition, the mineralized zones are enriched in both lead (max =2.8%) and zinc (max =1.86%). Discussion Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 48 of EGC’s drill testing of the Cerro Rico Zone is given in Section 10. Plate 9.2. Cerro Rico Manganese Enriched Silica Replacement. Table 9.2. Cerro Rico Significant Mineralized Silver-Gold Intervals. Trench Width (m) Ag g/t Au g/t Comments CR-01 8.0 372.5 3.9 Also 5.5m @ 7.8 g/t Ag & 2.1 g/t Au. CR-02 56.5m zone of elevated Au & Ag 0.02-0.64 g/t Au & Ag up to 13.3 g/t Ag. CR-03 5.8 872.6 0.7 includes 1.8 1515 0.8 CR-03 4.8 420.3 0,.2 Also 3.8m @ 84.6 g/t Ag and 0.9 g/t Au. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 49 Figure 9.8. EGC Cerro Rico Trench CR-01 Results. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 50 Figure 9.9. EGC Cerro Rico Trench CR-03 Results. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 51 10.0 Drilling Historical Colpayoc reconnaissance exploration drill campaigns were conducted in 1995 and 1998 by Newcrest and Balaclava, respectively. Estrella’s 2010-2011 diamond drill programs were focused on the Daylight Zone resource definition, but also included reconnaissance drilling at other prospects on the property. In total, there has been approximately 3600 meters of core drilling (i.e., 1241.7m by Newcrest and 2357.2m by Estrella) and 500 meters of reverse circulation drilling (Balaclava) on the Colpayoc project (Figure 10.1). Drill intercepts within the porphyry targets at the Daylight Zone and Montura prospects represent true thicknesses within broad, low grade envelopes of mineralization. The true thickness of intercepts from the reconnaissance drilling on structural targets at Cerro Rico, Alpaca, and Rayo Grande is unknown. Figure 10.1. Overview of Colpayoc Target Areas and Drilling. 10.1 Discussion of Historical Drilling 10.1.1 Newcrest Diamond Drilling The first Colpayoc drill program was completed in 1995 by Newcrest, and consisted of eight core holes totaling 1241.7 meters (Table 10.1). One core hole, CPD-06, was drilled at the Daylight porphyry zone. The other seven holes were drilled at the Montura and Rayo Grande Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 52 targets, located south and west of the Daylight Zone, respectively. The Newcrest core is stored off-site at the San Nicholas mine, approximately 40 kilometers north of the property (Plate 10.1). The Newcrest drilling intersected anomalous to significant mineralization in all eight holes (Table 10.2). CPD-06 intersected gold mineralized intercepts at the Daylight Zone from surface to the total depth of 147.6 meters. Five Newcrest holes were drilled at the Montura porphyry target, with three holes (CPD-01, -02, and -05) returning significant to anomalous gold and geochemically elevated copper intercepts. These three holes trace an east-west, 500 meter arc that is situated on the flanks of a magnetic high (refer back to the magnetics map in Figure 9.2). The two Montura holes to the north were anomalous in gold or copper, and are situated outboard from the magnetic high. CPD-01 intercepted 44 m @ 0.32 g/t gold (from 0-44.0 m). CPD-03, located between the Montura and Rayo Grande targets, intersected narrow (i.e., 2–4 m) intercepts of 0.1-0.3 g/t gold, as well as anomalous silver. CPD-04, located on the southeast flank of a magnetic high at Montura, intersected a wide zone of silver mineralization (6.0–48.0, 42 meters @ 54 g/t) with a high-grade zone that assayed 4 m @ 244 g/t silver from 28.0–32.0 m (true width unknown), with elevated values in gold and copper. CPD-05 at Montura intercepted 56 m @ 0.19 g/t gold (from 26.0–82.0 m) and CPD-07 intercepted 133m @ 0.13 g/t gold (from 8.0 – 141m). The Newcrest drill coverage is at the reconnaissance scale, and the results suggest extensive and varying metallogenic signatures within an overall porphyry intrusive context. Due to the broad scale of anomalous gold content, further follow-up and study of the historical drill results at the Montura and Rayo Grande prospects is recommended. This review may add a perspective of metal zoning and target vectoring, particularly when integrated with surface geological, geophysical, and geochemical survey results. Table 10.1. Historical Newcrest Core Hole Collar Information. Hole ID East (m) North (m) Elev (m) TD (m) Azim Incln Zone CPD-01 763448 9209806 3882 300.0 0 -90 Montura CPD-02 763148 9209807 3889 101.6 0 -90 Montura CPD-03 762977 9210133 3926 189.0 130 -65 Montura-Rayo Grande CPD-04 762601 9210091 3975 102.5 0 -90 Rayo Grande CPD-05 763647 9209733 3850 160.0 220 -70 Montura CPD-06 763800 9210225 3828 147.6 0 -90 Daylight CPD-07 763481 9209957 3893 141.0 220 -65 Montura CPD-08 763717 9209853 3864 100.0 0 -90 Montura Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 53 Table 10.2. Historical Newcrest Core Hole Drill Intercepts. Hole ID From (m) To (m) Length (m) Au g/t Comments CPD-01 0 44 44 0.32 Also 0.10% Cu 0-44m. Anomalous 272- 300m, 28m@ 0.20 g/t Au & 0.09% Cu. CPD-02 44 64 20 0.33 Broadly anomalous 0-86m, 86m @ 0.25 g/t Au. CPD-03 No significant intervals Anomalous Ag in tuffs and intrusive. CPD-04 No significant intervals 6-48, 42m @ 54 g/t Ag, with 4m @ 244 g/t Ag (28-32m). CPD-05 26 32 6 0.35 72 78 6 0.34 Broadly anomalous 26-82m @ 0.19 g/t Au & 0.07% Cu. CPD-06 2 8 6 0.32 Broadly anomalous 0-147.6m @ 0.41 g/t Au, 82-147.6m @ 0.13% Cu. 50 147.6 97.6 0.53 CPD-07 No significant intervals Broadly anomalous 8-141m, 133m @ 0.13 g/t Au. CPD-08 No significant intervals Weakly anomalous 0-100m @ 0.04% Cu. Plate 10.1. San Nicholas Mine, Core Storage for Newcrest Colpayoc Drill Core (EGC, 2010). 10.1.2 Balaclava Reverse Circulation Drilling Balaclava completed three reverse circulation holes for a total of 500 meters in 1998 that were designed to test the Granges trench results and Newcrest hole CPD-06 at the Daylight Zone (Table 10.3). Gold results from this drilling correlated well with the values in the Granges trenching and the Newcrest hole, and penetrated porphyry mineralization from surface to the end of each hole (Table 10.4). Further discussion of the Balaclava results is given in Daylight Zone resource estimation section of this report (Section 14). Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 54 Table 10.3. Historical Balaclava RC Hole Collar Information. Hole ID East (m) North (m) Elev (m) TD (m) Azim Incln Zone RCD-01 763965 9210300 3794 165.0 270 -60 Daylight RCD-02 763914 9210239 3809 165.0 265 -60 Daylight RCD-03 763824 9210096 3841 170.0 70 -60 Daylight Table 10.4. Historical Balaclava RC Hole Drill Intercepts. Hole ID From (m) To (m) Length (m) Au g/t Comments RCD-01 0 102 102 0.77 Also anomalous 0-102m @ 0.13% Cu. RCD-02 0 114 114 0.79 Also anomalous 0-114m @ 0.15% Cu.* RCD-03 0 170 170 0.56 Also anomalous 0-170m @ 0.12% Cu.* *Copper intercepts taken from SRK (2010), not available for verification. 10.2 Discussion of Estrella Diamond Drilling EGC’s core drilling program commenced in December 2010, with the completion of three holes, and restarted in late J une, 2011 for an additional twelve holes. Holes completed include ten at the Daylight Zone, two at Cerro Rico, two at Alpaca, and one at the Rayo Grande prospect. The first three holes were drilled by Longyear with an LF-70, and the remaining twelve holes were drilled by Bradley MDH with a LD-250 rig (Plate 10.2). The core diameter was principally HQ, with reduction to NQ as required by drilling conditions. From 2,300 meters of EGC core drilling, just over 2,000 meters (87%) were sampled and assayed. The average sample length was 1.73 meters and ranged from a minimum of 0.20 to maximums typically of 2.0-3.0 meters. The core was sawn, with one half retained and the other half submitted for assay analysis at ALS Chemex in Lima. Plate 10.2. EGC Core Drilling at Colpayoc (Yanacocha in Background). Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 55 10.3 Estrella Diamond Drilling Procedures The general protocol for EGC’s core sampling and logging is given below. • Core was quick log reviewed at the rig by an EGC geologist, labeled, and placed in core boxes. • Core boxes were taken to the Cajamarca core storage building at the end of each drill shift. • The core was cleaned, and detailed geological and geotechnical logs were recorded and the assay sample intervals marked. • Core box photos, as well as detailed photos from specific intervals, were taken. • Samples were marked with a split line for sawing, which was chosen to avoid sampling bias, • The marked core was cut with a diamond saw along the split line. One half of the core (~4 kg in weight) was bagged, tagged and prepared for shipment to ALS Chemex’s sample preparation and analytic facilities in Lima, Peru (ISO 9001:2000 accredited). Standards and blanks were added to the package. • One half of the core was retained in the core box, and archived in core storage. • Groups of five core samples were placed in nylon rice sacks, secured with zip lock ties, and shipped to the Chemex-Lima prep lab via commercial air and/or ground carrier. • Sample shipment frequency was on the order of 2 to 3 times a week. The holes were collared and drilled at orientations to provide approximate “true width” intercepts for a given zone, particularly for structurally controlled targets at Cerro Rico and Alpaca. All of the drilling was oriented as angle holes, with inclinations that ranged from -50° to -70°. Down-hole surveys were determined with an EZ-Shot instrument for the Longyear drilling. A surveying instrument was not available for the Bradley MDH drilling, and only acid- etched inclinations were recorded. Collar coordinates were determined with a hand-held GPS. A table of collar information is provided below (Table 10.5). Table 10.5. Estrella 2010-2011 Diamond Drill Hole Collar Information. Hole ID East (m) North (m) Elev (m) TD (m) Azim Incln Zone COL-01 763965 9210270 3795.7 202.5 270 -50 Daylight COL-02 763850 9210270 3817.3 169.1 270 -50 Daylight COL-03 763965 9210240 3799.4 91.0 270 -50 Daylight COL-04 763963 9210198 3807.3 140.0 270 -50 Daylight COL-05 763956 9210147 3810.1 158.0 270 -50 Daylight COL-06 763900 9210300 3804.9 135.5 270 -50 Daylight COL-07 763937 9210330 3796.4 153.6 270 -50 Daylight COL-08 763853 9210340 3806.7 147.5 270 -50 Daylight COL-09 763846 9210152 3834.3 205.6 270 -50 Daylight COL-10 763800 9210225 3828.0 153.5 270 -50 Daylight COL-11 762060 9211730 3787.6 150.0 232 -45 Cerro Rico COL-12 761980 9211812 3766.2 150.0 232 -50 Cerro Rico COL-13 763630 9210800 3771.3 163.5 270 -50 Alpaca COL-14 762450 9210500 3889.8 170.4 220 -70 Rayo Grande COL-15 763713 9210653 3786.7 167.0 270 -50 Alpaca Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 56 Overall, the EGC core recovery was high, and it is concluded that the quality of the drill samples is acceptable for representative assay analysis. Estrella’s diamond drilling and sampling procedures provided reliable and representative samples. The core drilling was conducted to yield approximate true width intercepts across structures, and there was reasonable care taken to assure that the sampling was unbiased. Detailed core logging of geologic and structural conditions were noted and accounted for during sample acquisition. There was continuous professional supervision of the core sampling programs by EGC geologists. EGC’s drilling at the Daylight Zone consistently intersected the targeted gold porphyry mineralization, and at the other exploration target areas intersected alteration and geochemically anomalous gold values, as well as other metals. Summaries of significant Estrella drilling results are given in the prospect summaries in the following sections. 10.4 Estrella Daylight Zone Drilling EGC’s diamond drilling program at the Daylight Zone consistently confirmed the vertical and lateral continuity of the gold mineralized porphyry zone with step-out and in-fill drilling (Figure 10.2 and Table 10.6). This mineralization was logged as clay, sericite-clay, and chlorite alteration zones with varying degrees of quartz stockworking. Importantly, the gold is intimately related to magnetite, both as secondary disseminated and fracture filling. EGC drilled ten Daylight Zone holes for 1556.3 meters, and combined with Newcrest’s single 147.6 meter hole, the core total sums to 1703.9 meters in the prospect area. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 57 Figure 10.2. Daylight Zone Drilling and Geology. Table 10.6. Estrella Daylight Zone Diamond Drill Hole Intercepts. Hole ID From (m) To (m) Length (m) Au g/t Comments COL-01 0.5 120.8 120.3 0.49 Anomalous in Au & Cu to TD. COL-02 0.3 101 100.7 0.67 Anomalous in Au & Cu to TD. COL-03 0.0 91 91.0 0.55 Anomalous in Cu to TD (91m). COL-04 0.0 140 140.0 0.55 Anomalous in Cu to TD (140m). COL-05 3.5 73.2 69.7 0.72 95.9 157.0 61.1 0.58 Anomalous in Cu to TD (158m). COL-06 66.0 83.0 17.0 0.35 120.5 135.5 15.0 0.30 Anomalous in Au & Cu to TD (135.5m). COL-07 1.3 140.5 139.2 0.47 Anomalous in Au & Cu to TD (153.6m). COL-08 0.0 22.5 22.5 0.65 Anomalous in Cu to 123m. COL-09 0.3 44.0 43.7 0.40 104.0 129.5 25.5 0.62 140.1 148.0 7.9 0.62 Anomalous in Au & Cu to TD (205.6m). COL-10 10.0 63.0 53.0 0.57 78.5 91.5 13.0 0.34 Anomalous in Cu to TD (153.5m). Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 58 All of EGC’s holes were west-directed, and the porphyry contact with limestone units to the east and southwest remains open. The porphyry system also remains open to the north and south as indicated by the geologic mapping (refer back to Figure 10.2), although Balaclava’s trench results suggest that surface exposed gold mineralization closes off in those directions (Figure 10.3). It is important to note that all drilling at the Daylight Zone has ended in alteration and with at least anomalous levels of porphyry gold mineralization. Further drill testing is necessary to delineate the zone at depth. Additional discussion of the EGC Daylight Zone drill results is given in Section 14 of this report. Figure 10.3. Estrella Daylight Zone Drill Hole and Surface Trench Gold. 10.5 Estrella Drilling at Other Prospects EGC conducted reconnaissance exploration drilling at three target areas outside the Daylight Zone in 2011 including the Cerro Rico, Alpaca, and Rayo Grande prospects (refer back to Figure 10.1). In general, this drilling intersected narrow, geochemically anomalous to weakly mineralized zones. The drilling consisted of simple reconnaissance tests, including either a single hole (Rayo Grande), or two holes spaced at 100 to over 150 meters apart along each structural trend (Cerro Rico and Alpaca). As a result, the drilling is not definitive, and with additional work the targeting could be refined with the goal of justifying further follow-up. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 59 Cerro Rico Zone. Two core holes (COL-11 and -12) were drilled at the Cerro Rico replacement zone target totaling 300 meters. COL-11 was planned to drill beneath the high grade silver mineralization identified in EGC trenches (i.e., 5.8 m @ 872 g/t Ag), however the hole was possibly located on the east side of a fault which apparently offset the mineralization. COL-12 was located approximately 100 meters northwest of COL-11 and did not reach the target zone. Geochemically anomalous assays were returned from the EGC drilling, with the best intervals given as: • COL-11: 1.7 meters @ 0.18 g/t Au and 0.8 g/t Ag (18.5-20.2m), • COL-12: 2.0 meters @ 0.25 g/t Au and 35.7 g/t Ag (2-4m) and 2.0 meters @ 0.54 g/t Au and 3.7 g/t Ag (39.1-41.1m). Of note is that both holes intersected zones enriched in iron (i.e., >3-4%) and manganese (> 0.05-0.1%), particularly in the first 20 to 55 meters. This enrichment may be supergene, and would correspond to field observations from outcrops and trenches of silicified, manganese and silver enriched mineralization at the surface. Alpaca Zone. Two core holes (COL-13 and -15) were drilled at the Alpaca target totaling 330.5 meters. EGC’s drilling was designed to test a strong magnetic high coincident with the surface mapped contact between limestone and intrusive along approximately 170 meters of strike length. However, both holes cut only limestone, and did not intersect porphyry or skarn units at depth. COL-13 encountered zones of weak to moderate clay and iron-rich alteration in the limestones. Thin zones of gold-silver mineralization include: • COL-13, 1.0 meter @ 0.33 g/t Au and 10.1 g/t Ag (103.7-104.7m) and 1.4 meters @ 1.31 g/t Au and 3.1 g/t Ag (113.6-115.0m). COL-15 was entirely in fresh limestone, and was only assayed for the upper 51.5 meters of its 167.0 total depth. Rayo Grande Zone. A 170.4 meter core hole (COL-14) was drilled at Rayo Grande to test a magnetic high interpreted as a buried porphyry/skarn target beneath Cretaceous clastic rocks. The hole did not reach the target, but intersected a hydrothermal breccia with silica and anomalous gold including 10.8 meters @ 0.17 g/t Au (77.2-88m), and a second intercept in weakly hornfelsed clastic rocks that returned 24.5meters @ 0.13 g/t Au (141.5-166m). Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 60 11.0 Sample Preparation, Analyses, and Security Estrella’s sample security, preparation, analytical, and QA/QC procedures for the Colpayoc project meet CIM Best Practice guidelines, and are adequate for a property at the current stage of exploration evaluation. The exploration and drill samples were representative, with care given to avoid ‘high grading’ or introducing other biases during the sampling process. All sampling was conducted under the supervision of an EGC geologist. Details of the sampling procedures, quality control measures, and methods of sample splitting and reduction before dispatch to ALS Chemex for sample preparation and analysis are given in the respective sections of this report for surface (Section 9) and drill core (Section 10) sample types. All surface exploration and drill samples were submitted to the ALS Chemex laboratory in Lima, Peru (ISO 9001:2000 accredited) for sample preparation and assay and geochemical analysis. Estrella is independent of ALS Chemex. 11.1 Sample Security The chain of custody and security of EGC’s exploration samples started with prompt and secure delivery from the field to the company’s logging and storage facility in Cajamarca. The facility is a well-secured residential building with the open area surrounded by a gated and locked fence (Plate 11.1). The facility is monitored by company hired personnel. Plate 11.1. EGC Cajamarca Field Office, Logging, and Storage Facility. The handling of exploration samples was under the control and supervision of an EGC geologist. Core samples were boxed and transported to Cajamarca on a daily basis. Drill samples were bagged and groups of four to five samples were placed in a large nylon rice sack that was secured with zip lock ties in preparation for shipping. Shipment of samples to the ALS Chemex Lima lab was via commercial air and/or ground carrier every one to three days. Archived core boxes are kept in Cajamarca, and coarse rejects and pulps are retained by Chemex until return to EGC for storage. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 61 11.2 Sample Preparation and Analysis The sample preparation of rock and core samples consisted of: • Logging, drying (at <120° C if necessary) and weighing of the sample as delivered. • Fine crushing of rock chip and drill samples to better than 70% -2mm (CRU-31). • Riffle split 1 kilogram sub-sample (SPL-21). • Pulverize a 250 gram split to better than 85% passing minus 75 micron (PUL-31). The rock and core samples were analyzed for gold and a multi-element geochemical suite. Specifics include: • Fire assay from 30 gram charge for gold, with an AA finish (Au-AA23). Gold overlimit values (i.e., >10 ppm) were fire assayed with a gravimetric finish. • The ME-ICP41 technique (i.e., aqua regia digest and ICP analysis) was used for the other elements. Silver overlimit samples (i.e., >100 ppm Ag) were re-analyzed with aqua regia digestion and an AA assay. 11.3 Quality Assurance/Quality Control (QA/QC) Program Estrella implemented a QA/QC program that was particularly systematic for the 2010-2011 core drilling campaigns. The QA/QC program included the use of standard, blank, and duplicate QA samples. On average, these QA sample types were inserted as approximately 5-20% of the total samples submitted for analysis. The laboratory QA results were monitored and QC issues addressed so as to ensure a reliable and accurate assay database. A series of certified reference material (CRM) standards from Rocklabs (Auckland, New Zealand) and CDN Resource Laboratories Ltd. (Canada) were used for the Colpayoc QA/QC programs. These CRMs spanned the range of expected gold values from geochemically anomalous to ‘high-grade’ mineralized levels, and included certified samples for copper and silver as well. Blank QA samples were inserted to identify cross contamination issues that may have been introduced during the sample preparation process. The blanks consisted of coarse, fresh quartz material. Field duplicates were taken for each exploration sample type. For rocks, approximately twice the normal sample weight was taken, and the duplicate samples split from the field sample. The drill core duplicates were taken from the coarse rejects. 11.4 Diamond Drill Hole QA/QC Results The diamond drill hole QA samples passed all of the QC tests for CRM, blank, and duplicate samples. The CRM QC charts demonstrate excellent laboratory accuracy and precision for the gold assays, as well as for the copper and silver analyses. The CRMs represented in Figure 11.1 and 11.2, as well as other CRMs used in the EGC programs, consistently assayed within the two standard deviation bounds. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 62 Figure 11.1. CRM QC Plots for Gold. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 63 Figure 11.2. CRM QC Plots for Copper and Silver. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 64 The QA blank samples show acceptable low level performance for gold (Figure 11.3). Deviations from the baseline blank value are negligible, excepting one outlier at 28 ppb Au. This one high blank value, at 5-6 six times the 5 ppb detection limit, is not considered meaningful, especially considering that the reporting cutoff of 0.3 g/t Au is an order of magnitude higher than the spurious blank assay. Sample preparation cross contamination is not judged to be a problem from review of the blank QA samples. Figure 11.3. Blank QC Plots for Gold. The duplicate core sample analyses demonstrate a strongly linear correlation, particularly on the Log-Log scatter plot (Figure 11.4). This linear relationship holds for values ranging from the low to high end. This correspondence is expected considering the consistent, low-grade gold grades of the Colpayoc porphyry mineralization. The QC results from the CRM, blank, and duplicates samples confirm that Estrella’s drill core sampling protocols yielded reproducible and representative gold assays. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 65 Figure 11.4. Duplicate QC Scatter Plots for Gold (arithmetic and log-log). Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 66 12.0 Data Verification The author conducted both field and office based data verification exercises for the Colpayoc project. In the field, select sampling sites were confirmed, the geological mapping and drill logs reviewed, and duplicate chip channel and core samples taken. In EGC’s Lima office maps, reports, and digital databases were reviewed. The data verification conducted in both the field and office established the accuracy, reproducibility, and adequacy of the technical data used as the basis for this report. 12.1 Independent Core Samples The author performed independent verification of drill core sampling results during the property and core logging facility visit conducted October 12-14, 2011. As a part of this work, the drill core and corresponding logs were reviewed, and it appears that EGC’s geological logging was reasonably accurate and representative. However, there were cases observed where the delineation of oxide and mixed oxide-sulfide zones needed further review and refinement. Drill sample intervals were selected from four EGC core holes as being representative of the Daylight Zone’s alteration and mineralization. The archived half-core for the selected intervals were quarter sawn, or where the core was broken, about one half of the remaining material was taken. The core was cut and/or sampled by technicians under the supervision of the author (Plate 12.1). The samples were placed in plastic bags identified by sample number and also by tickets removed from a sample book. The sample descriptions were recorded in the sample book. The filled sample bags were sealed and placed in labeled nylon rice sacks, along with the author’s QA samples consisting of blanks and CRM standards. The nylon rice bags were closed-off with plastic zip-locks, and shipped to the ALS Chemex laboratory in Lima for sample preparation and analysis. Gold was analyzed by fire assay with an AAS finish, and multi-element analyses were determined with aqua regia digestion and ICP/AES techniques (i.e., the same techniques routinely used by EGC). The CRM standards returned assays that passed the QC tests, and the blank samples also passed the QC tests. The gold analyses show good correspondence between the original EGC sample results and the independent sample assays (Table 12.1 and Figure 12.1). The original EGC samples averaged 0.74 g/t gold in comparison to 0.72 g/t gold for the independent samples, which corresponds to a 2.7% difference. As well, there is excellent linear correlation as demonstrated by the scatter plot and an R**2 of 0.94. The author’s independent samples of the drill core demonstrate an excellent reproducibility of the EGC assay results. The correlation between the original and independent duplicate core samples establishes that EGC’s drill sample assay results are reproducible within the context of geologic variance expected for a porphyry gold deposit. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 67 Plate 12.1. Independent Drill Core Review and Sampling at EGC’s Cajamarca Facility. Table 12.1. Original Drill Core Samples and Independent Duplicate Samples. Drill Hole Original EGC Sample Ind. Duplicate Sample Hole ID From To Length Sample No Au g/t Sample No Au g/t COL-02 29.0 31.0 2.0 35579 1.08 33082 1.07 COL-02 31.0 33.0 2.0 35580 0.53 33083 0.43 COL-02 33.0 35.0 2.0 35581 0.77 33084 0.80 COL-02 51.0 53.0 2.0 35590 1.02 33085 1.10 COL-02 73.8 75.9 2.1 35603 0.61 33087 0.50 COL-03 9.5 11.0 1.5 35662 0.58 33089 0.56 COL-03 57.0 59.0 2.0 35686 0.55 33090 0.54 COL-03 80.0 81.0 1.0 35701 0.26 33091 0.42 COL-05 29.5 31.2 1.7 53105 1.75 33092 1.62 COL-05 31.2 33.0 1.8 53106 1.03 33093 1.01 COL-05 50.0 51.0 1.0 53117 0.90 33094 0.94 COL-05 69.3 72.0 2.7 53130 0.54 33095 0.62 COL-10 47.1 48.2 1.1 53614 0.50 33097 0.53 COL-10 50.0 52.0 2.0 53616 0.22 33098 0.23 COL-10 90.0 91.5 1.5 53641 0.63 33100 0.40 Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 68 Figure 12.1. EGC Versus Independent Core Sample Scatter Plot. 12.2 Independent Field Check of Surface Sampling and Geological Mapping The author conducted a field review of the project area accompanied by EGC geologists J ose Quijano Vargas and Alex Tadeo. The principal objectives included spot checking the project’s surface sampling results and review of the geological mapping for the Daylight Zone. However, brief field checks were also made at the Montura, Rayo Grande, and Cerro Rico target areas. 12.2.1 Daylight Zone The best exposures of the Daylight Zone’s geology are given by the network of historical dozer trenches cut by Granges. Three trenches were selected for review and chip channel check sampling. In general, from the trench traverses the geological mapping accurately reflected the altered porphyry and surrounding limestone contacts and characteristics (Plate 12.2). However, it does not appear that EGC has done much detailed follow-up mapping to characterize features such as stockwork densities or fracture and structural orientations that may be related to mineralizing controls; this work should be included in future programs. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 69 Plate 12.2a. Daylight Zone FeOx Stained Porphyry Stockwork. Plate 12.2b. Daylight Zone Porphyry Contact with Limestone Unit. The author’s chip channel sampling was conducted at a total of six different sites in three trenches (Figure 12.2). These sites were selected based upon geographic coverage and historical Granges sampling results that reflected typical gold grade ranges for the surface exposed porphyry. It must be kept in mind that the precise locations of the previous Granges samples are unknown. However, from the geometries of the sample locations and their relationship to well- preserved dozer excavations in the field, they can logically be placed to within 4-6 meters of an assumed sampling site. Similarly, the location of the author’s independent samples are an estimate given by a) the error of a hand-held GPS, b) features observed in the field from high- resolution imagery, and c) the relationship to “known” features such as drill collars. It follows that precise duplicate check sampling of the Granges trenches is not practical, and in fact not possible with the records available from the historical work. The trench chip channel samples were taken by EGC technicians under the author’s supervision (Plate 12.3). After the selected area was cleaned, 2 meter chip channels were taken using a pick and rock hammer to yield on the order of 4-6 kilograms per sample. The locations and assay results from these independent samples were subsequently compiled in the office, and adjacent two meter samples composited for comparison with the Granges samples averaged over the same interval and from the same approximate location (Table 12.2). Table 12.2. Historical Trench Samples and Independent Duplicate Samples. Trench ID Length (m) Granges Au g/t Sample No Independent Au g/t Comment TR-8 (A) 8 0.57 33051-54 0.66 NW of COL-10 TR-10 (G) 6 0.63 33060-62 0.70 SE of COL-08 TR-10 (G) 4 1.12 33064-65 0.90 SE ~90m from COL-08 TR-10 (G) 8 0.86 33066-69 0.82 SE ~110m from COL-08 TR-9 (B) 6 0.81 33071-73 0.70 Adjacent to COL-03 TR-9 (B) 4 1.41 33074-75 1.60 NW ~80m from COL-03 Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 70 The comparison between the independent and Granges samples is notably good, and on a length- weighted basis yielded the same average grade of 0.84 g/t gold. This exact correspondence is due more to coincidence than sample reproducibility, but still suggests that the Granges results appear to be representative of the surface exposed gold mineralization in the Daylight Zone. Notwithstanding, future work should include a program of field surveying and systematic re- sampling of the trenches. Plate 12.3. Independent Chip Channel Sampling of Daylight Zone Trenches. Figure 12.2. Independent Chip Channel Sample Locations From the Daylight Zone. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 71 12.2.2 Other Prospects Brief field stops and cursory geological observations were made at the Montura, Rayo Grande, and Cerro Rico prospects. Representative photos are presented in Plates 12.4a-d. Plate 12.4a. Montura - looking south along road track exposing altered and stockworked porphyry. Plate 12.4b. Montura - porphyry alteration in vicinity of Newcrest hole CPD-01. Sample 33079 3m @ 0.28 g/t Au and 194 ppm Cu. Plate 12.4c. Rayo Grande – from road cut exposing weakly altered clastic units dipping obliquely into slope. Plate 12.4d. Cerro Rico – silicified and Mn stained zone. Sample 33081 @ 146 g/t Ag, 1.36% Zn, and > 5% Mn. 12.3 Independent Drill Assay Database Audit An independent audit of EGC’s drill assay database was conducted consisting of a random 10% check of the gold assays versus digital ALS certificates of analysis. The check found zero errors or discrepancies for the drill assay records, and confirmed the quality of the drilling assay database used for the Daylight Zone resource estimate. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 72 13.0 Mineral Processing & Metallurgical Testing There has been no recent metallurgical test work performed on material from the Colpayoc property. There is a summary of historical test work results, but the documentation provided cannot be used to support any conclusions on the metallurgical characteristics of the deposit. Estrella performed cyanide AA gold analyses in late 2011, to get a preliminary suggestion of the metallurgical characteristics, but this work is not conclusive. A metallurgical test program of the Daylight Zone mineralized material should be considered on a priority basis. 13.1 Historical Metallurgical Test Work Preliminary metallurgical test was performed by SGS Peru S.A. for Granges Exploration as documented in the A.C.A. Howe report (1997): “The test was for cyanidation by both agitation and column methods and was based on a composite of 60 rock samples weighing approximately 2 kilograms each and having an average grade of 0.85 g/t gold. Microscopic analysis of the sample indicated that it was totally oxidized and composed of magnetite and limonite in a gangue of quartz, calcsilicates and aluminosilicates”. Table 13.1 is a summary taken from the Howe report. Table 13.1. Summary of Granges Historical Metallurgical Test Work. Cyanidation Type % passing -200 mesh Time (hours) Au Recovery (%) Acid Consumption (kg/tn) NaCN Consumption (kg/tn) Agitation 36 24 85.4 7 0.87 Agitation 50 24 87.9 7 0.90 Agitation 65 24 89.5 7 0.91 Agitation 80 24 93.5 7 1.19 Column 36 24 95.9 7 1.17 No original source documents for the Granges metallurgical testing were available for review. There also is no indication of where the 60 samples came from that were used for the Granges metallurgical work. SRK stated in their 2010 report that the samples came from the Daylight Zone, but the author has not seen any documentation to verify SRK’s assertion. From SRK’s (2010) discussion of the Granges test work: “The results can only be an indication of surface mineralization (oxide) reaction to cyanide and is only an indication as to the results. This testing would have to be repeated. The results indicate 85 to 95% recovery from several cyanidation tests; however, SRK does not have the backup data to verify this information. SRK recommends a program of metallurgical testing to determine several characteristics: 1. Bottle roll tests to determine the cyanidation amenability of gold mineralization, and the determination of significance (if any) to associated low-level copper mineralization (is it a cyanide consumer?). This should be done on oxide, mixed oxide-sulfide, and sulfide mineralized material 2. Bench scale flotation tests on sulfide mineralized material 3. Simple column tests to determine leach rates and ultimate recovery of oxidized mineralized material; to determine initial amenability to potential heap leach processing.” The author agrees with SRK’s recommendations as given above, especially the bottle roll tests. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 73 13.2 Estrella’s Cyanide AA Assays Estrella conducted a limited program of analyzing 2010-2011 drill pulp composites with cyanide-soluble AA (“CN-AA”) techniques from three Daylight Zone holes (COL-02, -07, and - 10). The procedure involved a) compositing individual drill interval pulps into groups of 3-4 samples to approximate combined sample lengths of 4-6 meters, b) taking a 30 gram split from the drill pulp composite, and c) analyzing for gold by cyanide leach with an AAS finish (method code Au-AA13). The entire procedure from pulp compositing to analysis was conducted at ALS Chemex in Lima, Peru. The CN-AA gold assays do not represent metallurgical test work, but they do give a preliminary indication of the relative recoveries that could be expected from different material types at the Daylight Zone (Figure 13.1). Comments on the results are given below. • COL-02. For the entire hole, the length-weighted CN-AA/FA ratio is 74%. The hole is logged within the oxide zone from 0-121.5 meters, and mixed oxide-sulfide from 121.5 to the total depth. Of note is that some intervals within the broader near-surface oxide zone were logged with trace to weak amounts of pyrite along with moderate iron oxides. In many cases, this appears to account for some of the lower CN-AA/FA ratios in the material logged as oxide. The mixed oxide-sulfide material deeper in the hole had ratios similar to the oxide intervals. • COL-07. The entire hole is logged as oxide, and has a length-weighted CN-AA/FA ratio of 86%. The ratios range from 56% to over 100%, with no obvious reason for the variance from a first-pass review of the drill log. • COL-10. The entire hole is logged as oxide, and has a length-weighted CN-AA/FA ratio of 78%. The ratios range from 31% to over 100%, and as with COL-02, there are intervals within the broader oxide zone logged as having trace to weak amounts of pyrite along with iron oxides. Although the CN-AA/FA ratios from EGC’s work give overall drill hole averages ranging from 74% to 86%, there can be wide variations from any given interval. In particular, this work may have illustrated the difficulty of defining the metallurgical characteristics of the Daylight Zone from visual drill logging alone. The occurrence of near-surface lenses or zones of mixed oxide- sulfide material in the broader interpretation of the upper oxide zone must be carefully reviewed and considered. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 74 Figure 13.1. Summary of Granges Historical Metallurgical Test Work. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 75 14.0 Mineral Resource Estimate The Daylight Zone inferred mineral resource is an update to the original resource reported in the 2010 technical report (SRK, 2010) based upon EGC drilling and additional exploration conducted in 2010-2011. The Daylight Zone geologic and resource models are supported by the author’s independent checks and assessment of the drill and trench data, quality assurance/quality control results, and geologic interpretation of the porphyry gold mineralized zone. This section reports on the modeling procedures and assumptions, grade estimation parameters, and resulting mineral resource estimate and classification. 14.1 Daylight Zone Drill Hole and Trench Sample Databases The Daylight Zone geologic model and gold resource estimates were based upon the drill hole and trench sample databases provided by EGC in November, 2011. The drill database represents over 2,200 meters of core and reverse circulation drilling, details of which are described in Section 10 of this report. The trench database has 1,150 samples taken from approximately 2,450 meters, and outlines a 300 by 350 meter gold mineralized zone as described in Section 9. Figure 14.1 is a plan map representing the drill collar and trench sample locations used for resource modeling of the Daylight Zone. Figure 14.1. Daylight Zone Trench Data and Drill Hole Collars. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 76 The EGC drilling represents over a three-fold increase in drill meters as compared to the total used for the 2010 resource (i.e., approximately 650 meters). The drill data were provided by EGC as 1) drill collars in UTM meters as determined by hand-held GPS, 2) down-hole survey records, 3) assays consisting of gold and multi-element geochemistry, and 4) geologic logs. EGC has followed CIM Best Practice guidelines for drilling, sampling, assaying, QA/QC, and data verification. As a result, the quality of the drill database used to estimate the Daylight Zone gold resources is judged to be reliable, accurate, and reproducible for mineral resource assessment. 14.2 Daylight Zone Geologic and Grade Shell Models The Daylight Zone geologic and grade shell models were developed from: 1) logged lithology and alteration, 2) a statistically derived mineralized envelope from gold assays, and 3) three- dimensional multi-element geochemical models of metals associated with the gold mineralization. These data were integrated to develop a grade shell model for the gold mineralized zone. 14.2.1 Definition of Porphyry Gold Mineralized Domain EGC provided east-west cross sectional interpretations for lithology, alteration, and oxidation at variable 40-70 meter spacings. These interpretations were reviewed with the drill data and surface mapping, and it was determined that the Daylight Zone drilling was almost entirely in the altered diorite porphyry intrusive. The exception was limited to two holes (COL-02 and COL- 10) that reached total depths in altered post mineralization dikes at the western margin of the Daylight Zone. Since all of EGC’s core holes were west directed, the limits of the porphyry system at depth remain undrilled to the north, east, south, and southwest. Further, the attitude and nature of the porphyry contact (i.e., structural or intrusive)with the wall rocks is currently not well understood. As a result, the definition of the Daylight mineralized porphyry was best modeled by a grade shell approach. Univariate statistical review of the Daylight Zone drill hole gold assays was used to interpret a threshold for a grade envelope representing the mineralized domain. The gold frequency distribution was reviewed with Log10 histograms and length-weighted statistics (Figure 14.2). The histogram is notable as a bimodal distribution, with a distinct log symmetric distribution representing a majority of the population, with a second population defined by a negative tail at 0.10 g/t (ppm) gold. The Daylight Zone gold zone is also outlined in plan view by the historic trench data at a 0.10 g/t gold threshold. Accordingly, 0.10 g/t gold was interpreted as the threshold to guide the delineation of the Daylight Zone gold mineralized envelope. The 0.1 g/t gold envelope was initially interpreted on east-west cross sections spaced at 50 meters, and on grid lines selected to approximate the overall drill pattern. The relatively simple geometries of the Daylight Zone gold mineralization resulted in consistent and correlateable interpretations on section. Subsequently, the model was refined on east-west sections at 25 meter spacing. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 77 The gold envelope interpretation polygons were used to construct a solid model of the mineralized domain. This solid was reconciled with the drill and trench data to ensure that there was no miscoding of sample intervals relative to the model. As well, the model was sliced as long sections at a north-south orientation, and as bench plans to check the consistency of the interpretations. The reconciled and adjusted interpretations were used to build the final solid model, that was in turn utilized to code drill composites and the block model for geostatistical analysis and grade interpolation (Figure 14.3). Figure 14.2. Daylight Zone Log 10 Histogram for Drill Hole Gold. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 78 Figure 14.3. Daylight Zone 0.10 g/t Gold Domain Solid Model. 14.2.2 Oxide-Mixed Zone Model An important component of the Daylight Zone resource estimate was the assignment of gold mineralized material into either an oxide or mixed oxide-sulfide category. EGC cross sectional interpretations were used to build a solid model of the mixed material, with tonnages outside of the solid assigned as oxide. The solid model was also reviewed and reconciled in long section and plan view (Figure 14.4). From the solid model, it appears that the mixed material is most prevalent in the western one- third to one-quarter of the Daylight Zone starting at depths of approximately 30 to over 50 meters. The EGC interpretation of the mixed zones tends to have poddy to elongated, near- vertical shapes to depth, particularly towards the center of the deposit. These geometries could reflect structural or other geologic controls, but presently are poorly understood. Further, the Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 79 author’s review of the Daylight Zone core indicates that some of the shallower drill intercepts modeled as oxide included lenses of sulfide material as well. This observation was further reinforced by the cyanide gold analyses described in Section 13. As a result, it is a high priority to revisit the oxide-mixed model in light of further core review, and as augmented by a more extensive program of cyanide AA gold analyses. Regardless, the current oxide-mixed model is based upon a “best efforts” interpretation given the current level of knowledge. Figure 14.4. Daylight Zone Oxide-Mixed Solid Model. 14.2.3 Geochemical Models In addition to gold, a number of other metals from the multi-element database were geochemically anomalous in the altered porphyry zone, most notably copper, lead, zinc and molybdenum (Figure 14.5). Length-weighted drill interval average grades for copper (833 ppm) and zinc (700 ppm) are relatively high, while lead (181 ppm) and molybdenum (17 ppm) occur at lower levels. First pass grade shell models were generated for Cu at 200 ppm, Pb at 300 ppm, Zn at 1000 ppm, and Mo at 25 ppm (Figure 14.6). The models suggest that there is a broad halo of Cu peripheral to and including the gold zone, Pb-Zn rims the core of the gold zone, and Mo is concentrated at Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 80 the core of the gold zone. All of these metal relationships are consistent with the porphyry gold grade model, and supports the validity of using the 0.1 g/t Au solid for resource estimation. Figure 14.5. Daylight Zone Log10 Histograms for Cu, Pb, Zn, and Mo. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 81 Figure 14.6. Daylight Zone Cu, Pb, Zn, and Mo Grade Shell Models. 14.3 Compositing Run length composites were calculated from the combined drill and trench assay database at a three meter interval length. This length represents one-half of an assumed six meter bench height. Review of the data established that the average interval length was 2.1 meters for the surface trenching and 1.73 meters for the EGC core drilling. Non-representative composites with less than 50% of the three meter interval represented by assay data, or less than 1.5 meters in combined length, were discarded. The gold mineralized zone solid model was used to code the assay composites in preparation for geostatistical analysis and block modeling. Composites were determined to be within the modeling domain based upon the location of the composite centroid. For boundary cases where a composite was incorrectly assigned, the interpreted model was adjusted, and a valid assignment made. The composite frequency distribution for the gold mineralized zone was characterized with univariate statistical analysis and a Log10 histogram (Figure 14.7). Pb Mo Cu Zn Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 82 Figure 14.7. Daylight Zone Log 10 Histogram for 3 meter Composite Gold. From the histogram, the altered porphyry and gold mineralized domain defines a log symmetric distribution with a slight negative skewness. The average grade is 0.45 g/t gold, and the coefficient of variation (CV) is a relatively low 1.15. These statistical parameters represent a geologic population of mineralization that is characteristic for a low grade, porphyry gold system. The low CV reflects a mineralized zone that does not have a significant high grade outlier population, and supports linear estimation techniques such as Ordinary Kriging for grade interpolation. The gold composites were reviewed in more detail to determine if a cap grade was justified. An inflection in the distribution occurs at approximately 1.6 g/t gold (max =2.09 g/t Au), and this value was used as the cap grade. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 83 14.4 Variography (refer to Figure 14.8) Variography was conducted on the three meter composites for the Daylight Zone gold domain. Initially, a down-hole variogram was calculated to define the nugget effect, as well as the shape of the variogram model at distances closer than the average drill hole spacing (i.e., down-hole composite pair distances start at three meters as opposed to the drill grid spacing of 30 to over 75 meters). The definition of the down-hole variogram model parameters provided a basis for proceeding with directional variogram analysis. The down-hole general-relative variogram was modeled to determine the nugget and sill parameters. The double spherical model yielded a nugget C0 of 0.12, a primary sill C1 of 0.12 at a range of 60 meters, and a secondary sill C2 of 0.19 at 100 meters, for a total sill of 0.43. This yields a nugget to sill ratio of 28%, suggesting that 72% of the gold variance has a spatial component, with the balance of the spatial variance due to ‘nugget effect’. Directional variograms stepping at 15 degree increments of azimuth, and 10 degree increments of plunge were calculated to determine the primary, secondary, and tertiary directions of spatial continuity. The directional variograms were also modeled as double spherical. The nugget was defined at C0 =0.07, with sill parameters given by C1 =0.13 and C2 =0.25, for a nugget to sill ratio of 16%. Of the total 84% spatial variance along the primary, secondary, and tertiary directions, 34% is defined in the first 30-75 meters, with the 66% balance of spatial variance within the 100 meter secondary range. This implies that there is significant gold grade continuity along strike and down dip. The primary direction is oriented at an azimuth of 340°, with the secondary direction at 70° and dipping 35° southeast. The tertiary direction is defined perpendicular to the plane defined by the strike and dip. The total range for all three directions is from 90-115 meters, defining a model that is nearly isotropic. The variogram directions and ranges are summarized in Table 14.1. The gold mineralized domain provided a composite population that yielded robust variograms, with clearly definable model parameters. The porphyry gold mineralization at the Daylight Zone is interpreted to have a significant degree of grade continuity, as expected with this deposit type. The nearly isotropic model is consistent with the spatial continuity expected in a porphyry system, and is consistent with EGC’s geologic mapping and logging that has not identified any clear-cut preferred directions of the mineralizing controls. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 84 Figure 14.8. Down-hole and Directional Gold Variogram Models. Table 14.1. Gold Directional Variogram Model Parameters Direction Azimuth Inclination Range 1 (m) Range 2 (m) Primary 340 0 50 100 Secondary 70 -35 75 115 Tertiary 250 -55 30 90 14.5 Block Model and Density Assignments 14.5.1 Block Model Definition The Daylight Zone block model was constructed to cover the extent of the gold mineralized domain. The block model was oriented parallel to the axes of the project’s UTM coordinate grid. The 6m x 6m x 3m (x, y, z) block size was kept constant from SRK’s 2010 resource model. These are appropriate dimensions based on the current drill hole and trench sample spacing, a half bench height of three meters, and a selective mining unit size suitable for a small-scale open Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 85 pit operation. In summary, the following parameters were used for the definition: • Origin: 763,500 east, 9,209,900 north, 3550 elev. • Maximum Extent: 764,200 east, 9,210,500 north, 3900 elev. • Parent Block Size: 6 x 6 x 3 meters (x by y by z) The topographic surface provided by EGC was based on five meter contours derived from a government published source map (i.e., quad “H-1”), and provided sufficient detail for the current level of resource definition. The topography and drill collars have not been confirmed by field survey work (i.e, DGPS); accurate DGPS surveys are recommended. The topography was used to define the top of bedrock in the block model. Soil/colluvial thickness was not represented in the database, and therefore was not considered in modeling. From field observations and review of the drill logs, the development of a soil horizon does not appear to be significant at the Daylight Zone. Block codes were assigned according to the gold zone and oxide-mixed solid models. The relatively small blocking scheme allowed a high degree of precision in assigning the geologic codes to blocks at the solid model contacts. 14.5.2 Density Assignments EGC had preliminary, paraffin-coated density measurements on nineteen select core samples from the Daylight Zone performed by SGS Laboratories Peru S.A. The samples were chosen from various alteration types: • clay (n=3), average density =1.75, • clay-sericite (n=6), average density =1.98, • sericite-clay (n=5) , average density =2.21, and • chlorite (n=5), average density =2.65. The clay densities were derived from near-surface (9-23.6m) samples that appear to be affected by a combination of both alteration and weathering processes. The other alteration types are interpreted to be due to hypogene processes. However, EGC’s initial logging and interpretation of the alteration zones did not consistently break-out the clay, clay-sericite, and sericite-clay zones. As a result, confident assignment of density by alteration type was not practical. Instead, a weighted average density of 2.21 was calculated based upon the relative percentages of logged intervals for each alteration type within the Daylight Zone. The 2.21 density was globally assigned to the block model. The results of EGC’s 2011 density work are a first attempt, and the density of 2.21 g/cc may be an under-estimate considering the typical characteristics of an altered porphyry. Further studies are required to confidently establish the densities to be assigned according to rock and alteration type. 14.6 Grade Estimation and Resource Reporting Gold grades were interpolated with Ordinary Kriging, search ellipsoids oriented according to the variogram model directions, and search distances based upon the variogram model ranges. Two Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 86 estimation passes were conducted, with the first pass restricted to within one-half the variogram range, and the second pass extended to the full variogram range. This approach resulted in block estimates from the first pass using relatively close samples, and the second pass filled in the unestimated blocks. The number of composites for estimation was set to a minimum of three and a maximum of twelve. A maximum of three composites was allowed from a single drill hole or trench. Ordinary Kriging (OK) grade estimation was constrained within the mineralized grade shell domain (Figures 14.9 and 14.10). The primary estimation inputs included the three meter composite database, the variogram models, and the search ellipsoid configurations. The Daylight Zone mineral resources were classified to reflect several factors that influenced the confidence in, and risks to, the estimate. These factors include the confidence of grade and tonnage estimates relative to sample spacing and the interpretation of continuity from geological observations and geostatistical measures, specific gravity determinations, verification of historical data sources, accuracy of drill collar locations and the topographic surface, and metallurgical characteristics. The Daylight Zone mineral resources are all classified in the inferred category. The resources have been reported at a 0.3 g/t cutoff that is taken as the minimum grade that would potentially be considered for a small scale, open pit operation (Table 14.2). The variables used for reporting include: ordinary kriged gold in g/t, tonnage reported as metric tonnes, and oxide-mixed sulfide categorization. Table 14.2. Daylight Zone Inferred Resources at a 0.3 g/t Gold Cutoff. Category Tonnes (000) Gold (g/t) Gold Grams (000) Gold Ounces (000) Oxide 17,883 0.51 9,070 292 Mixed 1,397 0.47 654 21 Total 19,280 0.50 9,724 313 Totals may not sum to 100% due to rounding. The model’s three meter ½ block height was re-blocked to a full six meter bench height to determine the effect of adding in edge dilution to the resource. At the 0.3 g/t reporting cutoff, the tonnes, average grade, and contained gold ounces were within 1% of each other. Due to the early stage of project assessment, a pit optimization algorithm was not applied to the in situ resource. As the project advances, it is recommended that the resources be reported within an open pit mining configuration to add confidence to the resource statement. EGC’s ten core holes at the Daylight Zone resulted in a 254 percent increase in the inferred resource tonnes, a 15% decrease in the average gold grade, and a 216% increase in the contained gold ounces as compared to the 2010 resource estimate (SRK, 2010). The increase in tonnes is due to the drill definition of mineralization at depth, in contrast to the 2010 resource that was substantially based upon the surface trenching. The decrease in the average grade reflects what appears to be a pattern of lower gold grades at depth. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 87 The mineral resources were also tabulated at a range of cutoffs (Table 14.3). A continuation or increase of the currently high price for gold may in part eventually justify the lowering of the nominal cutoff grade for Daylight Zone resource reporting. Table 14.3. Daylight Zone Inferred Resource Sensitivity By Cutoff Grade. TOTAL OXIDE AND MIXED Cutoff Au g/t Tonnes (000) Gold (g/t) Gold Grams (000) Gold Ounces (000) 0.1 28,839 0.41 11,900 383 0.2 26,094 0.44 11,468 369 0.3 19,280 0.50 9,724 313 0.4 13,087 0.58 7,575 244 0.5 8,545 0.65 5,534 178 OXIDE Cutoff Au g/t Tonnes (000) Gold (g/t) Gold Grams (000) Gold Ounces (000) 0.1 25,161 0.43 10,742 345 0.2 23,176 0.45 10,427 335 0.3 17,883 0.51 9,070 292 0.4 12,408 0.58 7,167 230 0.5 8,110 0.65 5,235 168 MIXED Cutoff Au g/t Tonnes (000) Gold (g/t) Gold Grams (000) Gold Ounces (000) 0.1 3,678 0.31 1,158 37 0.2 2,918 0.36 1,041 33 0.3 1,397 0.47 654 21 0.4 680 0.60 407 13 0.5 435 0.69 299 10 Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 88 Figure 14.9. Block Model Fence Diagram Oblique View (Azim = 279, Incln = -8) with Drill Holes and Trench Samples. E-W Sections and Level Plans @ 50m Spacing. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 89 Figure 14.10. Block Model Example E-W Cross Sections and Level Plans. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 90 14.7 Resource Model Validation Three techniques were used to evaluate the validity of the gold zone block model: 1. Comparison of the gold composites to the block model in cross section, long section, and plan illustrated that the geologic modeling zone, variogram ranges and anisotropies, and the two-pass search scheme yielded block grade estimates that accurately characterize the deposit’s gold mineralization. 2. An inverse distance to the third power estimate was run using with similar parameters as used for the OK model. At a range of cutoffs, the tonnes and average grades were within 1% to 3% of each other. 3. A nearest neighbor estimate was run using a single composite to estimate each block with similar parameters used for the OK model. The nearest neighbor model was within 1% of the kriged block model grade. This bias check at a zero cutoff confirms that gold is not being spuriously “smeared” during the OK estimation process. From the three separate validation exercises, it is concluded the Daylight Zone inferred resource estimate is robust, and represents the porphyry gold mineralization as currently understood. 14.8 Discussion of Daylight Zone Inferred Resources Since the drill definition of the gold mineralization is often within the variogram range, much of the work necessary to increase the Daylight Zone mineral resource from the inferred to indicated category can be achieved by a combination of metallurgical characterization, field surveying, and systematic confirmation sampling of the historical trenches. Primary factors resulting in the inferred classification relate to definition of the oxide-mixed zones, and the potential for low levels of oxide copper mineralization in a low grade gold deposit that would utilize conventional heap leach processing. As well, even though EGC has made significant progress in defining the in situ densities by alteration type, the wide range of density values requires further work tied to the modeling of the alteration domains in order to establish confident tonnage estimates. The 2011 Daylight Zone resource model defines a low grade, porphyry hosted gold deposit. There is clearly an opportunity to upgrade the resource classification, as well as add to the resource tonnes and contained gold through additional drilling. The 2011 resource model update establishes the Daylight Zone gold deposit as a candidate with potential merit for an open pit mining operation. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 91 15.0 Mineral Reserve Estimates Colpayoc is not an advanced property and therefore this section does not apply. 16.0 Mining Methods Colpayoc is not an advanced property and therefore this section does not apply. 17.0 Recovery Methods Colpayoc is not an advanced property and therefore this section does not apply. 18.0 Project Infrastructure Colpayoc is not an advanced property and therefore this section does not apply. 19.0 Market Studies and Contracts Colpayoc is not an advanced property and therefore this section does not apply. 20.0 Environmental Studies, Permitting and Social or Community Impact Colpayoc is not an advanced property and therefore this section does not apply. 21.0 Capital and Operating Costs Colpayoc is not an advanced property and therefore this section does not apply. 22.0 Economic Analysis Colpayoc is not an advanced property and therefore this section does not apply. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 92 23.0 Adjacent Properties There are no exploration properties directly adjacent to the Colpayoc project. Previous operators at Colpayoc (Newcrest and Balaclava) examined the Chamis property located approximately 4 to 5 kilometers to the northeast. Newcrest drilled five widely spaced holes, and Balaclava conducted reconnaissance and trench sampling programs at Chamis. According to the summary given in the A.C.A. Howe report (1997): “The style of mineralization on the Chamis property is very similar to that on Colpayoc hosting a Teritary aged multi-stage dioritic to dacitic stock which has intruded and skarnified surrounding Cretaceous aged limestone and shale. Auriferous (+- copper) quartz-magnetite stockwork outcrops on surface over an area of about 400 metres by 400 metres. Below the surface the extent of the mineralization is poorly defined and remains open in several directions”. Although the Chamis property is not adjacent to Colpayoc, its proximity and geological similarities highlight that other gold-in-porphyry exploration targets occur in the nearby area. The 1997 Howe report was produced for Balaclava’s public filing on the Vancouver Stock Exchange. The author of this report has not verified the Chamis information from the Howe report. 24.0 Other Relevant Data and Information The items set forth in this report constitute all the data known or available to the author relating to the Colpayoc property. This report reflects the state of knowledge as of the effective date. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 93 25.0 Interpretation and Conclusions The Colpayoc property hosts porphyry gold related alteration and mineralization in Tertiary-age intrusive rocks, as well as associated skarn and replacement styles of mineralization in Cretaceous-age limestone and clastic units. Estrella’s Colpayoc property position covers over 50 square kilometers within the Chicama-Yanacocha trend. However, EGC’s exploration work, as well as that of previous operators, has principally focused on the Daylight Zone resource. Reconnaissance exploration sampling and drilling has been conducted in a surrounding area of approximately 8.5 square kilometers in the south-central region of the EGC property position. This area includes the Montura, Cerro Rico, Rayo Grande, and Alpaca prospects. There is significant potential to not only add to the property’s gold resources with additional drilling, but as well to make new discoveries of porphyry related mineralization. 25.1 Colpayoc Exploration Potential Colpayoc’s location within the Chicama–Yanacocha structural corridor provides a foundation for understanding the exploration potential of EGC’s property. The northeast trend of this +50 kilometer wide belt of Miocene magmatism is genetically linked to the metallogenesis that is a hallmark of the Yanacocha District and the Cajamarca region. Colpayoc is 10-15 kilometers to the southwest of, and along trend with, the Yanacocha mining complex. From a regional scale, there are a series of Chicama–Yanacocha parallel geomorphic lineaments arrayed at distances of 5-7.5 kilometers (refer back to Figure 5.1). Geologically, Colpayoc’s location relative to the Chicama–Yanacocha belt is given in Figure 25.1. The mineralization at Colpayoc is broadly similar to other porphyry systems in the region with regard to host rocks, alteration style, metal suites and tenor (i.e., Michiquillay, El Galeno, Minas Conga, Cerro Corona, etc.). The exploration focus has been on developing the inferred porphyry gold resource at the Daylight Zone. However the Montura prospect directly to the southwest has outcropping quartz stockwork and altered porphyry that has only been reconnaissance tested by historical Newcrest drilling. As an example, Newcrest drill hole CPD- 01 intersected 44 meters (0-44m) of 0.32 g/t gold in a 300 meter hole that has been re-logged by EGC as stockworked volcanics, silicified exoskarn and silicified intrusives to the total depth drilled. Other Newcrest holes in the Montura target encountered significant alteration and mineralization. Moreover, from the Newcrest rock sampling, the Daylight and Montura zones coalesce into a single gold-copper-molybdenum anomaly that covers more than a 1.5 square kilometer area. Clearly, the apparent continuum of alteration and mineralization between the Daylight Zone resource and the Montura prospect is a priority for follow-up. Elsewhere on the Colpayoc property there is evidence of intrusive-related replacement and skarn styles of precious and base metals mineralization at Cerro Rico, Rayo Grande, and Alpaca. These mineralized zones have undergone simple one or two-hole drill tests that have returned mineralized to geochemically anomalous silver, gold, zinc, lead and copper intercepts. In total, there is approximately a six square kilometer area with various styles of alteration and mineralization that coincides with a broad, semi-circular magnetics feature (Figure 25.2). The geochemistry covers only a limited area; the majority of the prospective target region has not been evaluated. As well, 1.5 kilometers along northwest trend from Cerro Rico there is a magnetic anomaly truncated at the edge of the survey limits, but with no indication of sampling Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 94 or mapping follow-up. In total, there is magnetics coverage of approximately 15 square kilometers from a total land package of over 50 square kilometers. The geochemical sampling covers an even smaller area. Figure 25.1. Cajamarca Region Geology and Mineral Deposits (after Gustafson et al., 2004). Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 95 Figure 25.2. Colpayoc Property Regional Geology, Magnetic Anomaly, and Rock Au-Cu- Mo Anomaly. 25.2 Daylight Zone Inferred Mineral Resource Drilling and surface sampling at the Daylight Zone has delineated a porphyry gold resource within a 300 by 350 meter surface exposed zone that has been drilled to approximately 170 meters vertical depth. The drill database used for the current inferred resource consists of over 2,200 meters of drilling. The majority (i.e., 71%) of the Daylight Zone core drilling is from EGC’s 2010-2011 campaigns, and is judged to be of high quality. EGC’s drill results are consistent with those from the historical core and reverse circulation drilling. The historical surface sampling totals approximately 2,450 meters of dozer cut chip channel samples, and the assay results appear to be reproducible from independent sampling. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 96 EGC’s interpretation of the altered and gold mineralized porphyry from cross sections and surface mapping was used to develop a grade shell model at a 0.1 g/t gold threshold for the Daylight Zone. The gold mineralization as characterized by variography shows excellent continuity (ranges on the order of 90-100m). An oxide-mixed model and copper-lead-zinc- molybdenum geochemical models were also generated. The majority of the Daylight Zone has been interpreted as oxide. Drill core review and preliminary CN-AA gold analyses indicate that there are potentially lenses and pods of sulfide material in the upper levels of the mineralized zone; this issue needs further review. From the geochemistry, the Daylight Zone shows anomalous base metal zonations associated with the gold mineralization that are characteristic for a porphyry system. The copper (drill avg=800 ppm) and zinc (drill avg=700 ppm) anomalies are at elevated levels, and the potential impact of oxide copper on metallurgical processing should be evaluated. The Ordinary Krige resource estimate for the Daylight Zone shows strong gold grade continuity, and cross checks with drill composite grades, an inverse distance model, and a nearest neighbor model validate the kriged model. The resource is entirely classified in the inferred category, and at a 0.3 g/t gold cutoff totals 19.28 million tonnes averaging 0.50 g/t gold and yielding 313,000 ounces of contained gold. Of this total inferred resource, 17.883 million tonnes averaging 0.51 g/t gold are oxide, and 1.397 million tonnes averaging 0.47 g/t gold are mixed oxide-sulfide. The inferred category could be upgraded if the metallurgical characteristics of the mineralized material prove to be favorable. In addition, there is potential to expand the mineralized zone, and it remains open to the north, east, south, and southwest. Furthermore, the roots of the zone have not been drilled, and the mineralized system is open to depth. 25.3 Concluding Remarks EGC’s exploration programs have established Colpayoc as a property with a porphyry gold resource that has upside potential for expansion. Perhaps more importantly, the a) geologic setting, b) distribution of porphyry and porphyry related alteration, c) broad Au-Cu-Mo geochemical anomalies, and d) multiple concealed targets identified from the magnetics data suggests that EGC’s property position hosts a number of exploration opportunities in a district scale area of over 50 square kilometers. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 97 26.0 Recommendations Estrella’s exploration programs have established Colpayoc as a project of merit that includes an inferred gold resource at the Daylight Zone. There is upside potential for resource upgrade and expansion, as well as a number of priority porphyry gold, and porphyry related skarn and replacement targets that have been sampled and reconnaissance drilled. As follow-up to these successes, a 12 month exploration program is recommended that totals approximately US $1.7 million as summarized below and outlined in Table 26.1. 1) Core drilling programs of 3,500 meters to: a) expand the resource at the Daylight Zone and test the mineralized system to depth, b) conduct exploration drilling at the Montura Zone, including a test of continuity with the Daylight Zone, and c) continue drill testing of other target areas (i.e., Rayo Grande, Cerro Rico, etc). 2) IP surveys to assist in drill targeting at Daylight, Montura and other target areas. 3) Metallurgical studies including bottle roll tests and cyanide AA assays of drill pulps to characterize the Daylight Zone mineralized material. 4) Rock and channel sampling programs over known mineralized zones, as well as new target areas. This includes verification sampling of trenches at the Daylight Zone. 5) Soil sampling programs over an extended area covering the Daylight and Montura Zones and periphery, as well as other target areas. 6) Property wide 1:10,000 scale geologic mapping, and more detailed 1:1000 scale geologic mapping of the Daylight and Montura Zones, as well as other targets. 7) Airborne magnetics and radiometrics survey over the entire property to identify new targets for follow-up. 8) DGPS survey of roads, drill collar locations, and other geographic features. 9) Continue with required EIA studies. There are two principal goals of the recommended programs: a) evaluate Colpayoc’s potential as a 50 square kilometer district-scale play within the context of the Chicama-Yanacocha structural trend, and b) build on the current resource base. The systematic property wide evaluation includes an airborne magnetics/radiometerics survey, stream sediment sampling, and geological mapping. The budget also includes work intended to expand the gold resource at the Daylight Zone, and explore the system at depth and to the south with the Montura Zone. This exploration drilling will in part be guided by IP surveys, trenching, and soil sampling intended to demonstrate the continuity of these two zones, followed by drill testing. At the Daylight Zone, the current resource has the upside for converting from the inferred to the indicated category by completing metallurgical studies, systematic re-sampling of the historic trenches, and surveying of drill collars and trench locations. In addition to the metallurgical studies, detailed petrographic/spectral studies should be undertaken to determine the alteration assemblages and modes of occurrence for the gold mineralization. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 98 Table 26.1. Proposed 2012 Work Program Budget for Colpayoc Project. ITEM DESCRIPTION COST USD Airborne Magnetics/Radiometrics Property-wide (54 sq km) $ 40,000 Stream Sediment Geochem Property-wide (54 sq km) $5,000 Geologic Mapping/Sampling 1:10,000 property wide and 1:1000 prospect $75,000 Soil Sample Geochem Sampling over region covering Montura & Daylight Zones $50,000 Rock & Trench Sample Geochem Prospect & exploration sampling, including Daylight Zone trench confirmation $75,000 IP Surveys 25 line km at Montura-Daylight, Montura, Rayo Grande, etc. $125,000 Resource & Exploration Drilling 2500m DDH at Daylight Zone & Montura @$300/m $750,000 Exploration Drilling 1000m DDH at Rayo Grande & other targets @ $300/m $ 300,000 Metallurgical Studies Daylight Zone CN AA, bottle rolls, density determinations, petrography $65,000 DGPS Field Survey of drill holes, trenches, and roads Includes drill holes, Daylight Zone trenches, and roads $5,000 EIA Study To acquire Phase II permit $40,000 Contingency Various additional project costs @ 10% $153,000 GRAND TOTAL $ 1,683,000 Exploration funding is also proposed for the Rayo Grande, Cerro Rico and other prospect areas. The work programs will consist of systematic mapping and rock sampling, followed by soil sampling, trenching, and IP surveys. Drill test funding is allocated to follow-up on encouraging results. As a requirement to acquire the Phase II permit, it is critical to continue with the required EIA study. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 99 26.0 References Estrella Gold Corporation, 2011, Personal Communications and Proprietary Internal Reports. Chavez, Fernando N. 1996, Proyecto Colpayoc Cajamarca, Peru, Informe Geológico. Private Report prepared for Granges Inc., Peru. Cinits, R. and Ewert, W., 1997, Geological Report on the Colpayoc and Chamis Properties. ACA Howe International Ltd., Private Report for Balaclava Mines Inc. Cox, D.P., and Singer, D.A., 1986, Grade and Tonnage Model of Porphyry Cu-Mo, in Mineral Deposit Models: U.S. Geological Survey Bulletin 1693, p. 76 - 81. Fugro Ground Geophysics, 2008, Informe del Estudio Geofísico Por el Método Prospección Magnética Proyecto Colpayoc. Private Report Prepared for Canadian Shield Resources. Gustafson, Lewis B. et al., 2004, Porphyry-Epithermal Transition, Cajamarca Region, Northern Peru. Economic Geology Sp. Pub. 11, pp 279-299. Newcrest Peru S.A., 1996, Cerro Colpayoc Scout Drilling Project Data and Interpretation, Internal Company Report, 42p. Noble, D.C. and McKee, E.H., 1999, The Miocene Metallogenic Belt of Central and Northern Peru. Economic Geology Sp. Pub.7, pp155 – 194. Noble, D.C., McKee, E.H., Mourier, T. and Megard, F., 1990, Cenozoic Stratigraphy, Magmatic Activity, Compressive Deformation, and Uplift in Northern Peru. Geological Society of America Bulletin, v. 102, pp 1105 – 1113. Noble, D.C., Vidal, C.E., Perello, J . and Rodríguez, P.O., 2004, Space-Time Relationships of Some Porphyry Cu-Au, Epithermal Au, and Other magmatic-Related Mineral Deposits in Northern Peru. Economic Geology Sp. Pub. 11, pp313 – 318. Reeder, J eff P., 2004, Summary Report on the Colpayoc Property (prepared for Sebastian Reidl) Private Report. 13p. Sillitoe, R.H., 2010, Porphyry Copper Systems. Economic Geology, V. 105, pp 3 – 41. SRK, Moran, A., Aiken, J ., and Pennington, J ., 2010. NI 43-101 Technical Report on Resources - Colpayoc Gold Project, Cajamarca Department, Peru 74p. Teal, L., and Benavides, A.; 2010; History and Geologic Overview of the Yanacocha Mining District, Cajamarca, Peru; Economic Geology, v. 105, no. 7, p. 1173-1188. Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 100 CERTIFICATE OF QUALIFIED PERSON This certificate applies to a technical report on the Colpayoc Project entitled “COLPAYOC GOLD PROJECT TECHNICAL REPORT, CAJAMARCA DEPARTMENT, PERU” with an effective date of December 21, 2011 (the “Technical Report”) prepared for Estrella Gold Corporation pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“National Instrument 43-101”). I, Dean D. Turner, do hereby certify that: i) I am a consulting geologist with an office at 10607 Brown Fox Trail, Littleton, Colorado, USA; ii) I am a member in good standing of the American Institute of Professional Geologists (AIPG) as Certified Professional Geologist #10998; iii) I am a graduate of the University of Arizona with a Bachelors degree in Geosciences, and of the Colorado School of Mines with a Masters degree in Mineral Exploration and Mining Geosciences; iv) I have practiced my profession continuously for over 31 years since graduation from the University of Arizona in 1980, and have held both exploration and production geological positions; v) I have read the definition of a Qualified Person set out in National Instrument 43-101 and certify that by reason of my education, affiliation with a professional association and past relevant work experience, I fulfil the requirements to be a Qualified Person for the purposes of National Instrument 43-101; vi) I visited the Colpayoc property and Cajamarca core logging facility from October 12- 14, 2011; vii) I am responsible for and have reviewed and approved the material presented in this Technical Report; viii) I am independent of the issuer using the definition in Section 1.5 of National Instrument 43-101; ix) I have had no prior involvement with the property that is the subject of the Technical Report nor with Estrella Gold Corporation; x) I have reviewed National Instrument 43-101 and Form 43-101F1 to National Instrument 43-101, and the Technical Report has been prepared in compliance with both; and xi) As at the effective date of the Technical Report, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading. Signed and dated at Littleton, Colorado, on the 4 th day of February, 2012. Signed: “Dean D. Turner” Dean D. Turner, CPG #10998, American Institute of Professional Geologists Estrella Gold Corporation NI 43-101 Technical Report - Colpayoc Project, Peru Dec 21, 2011 101 DATE AND SIGNATURE PAGE The effective date of this technical report titled “Colpayoc Gold Project Technical Report, Cajamarca Department, Peru” is December 21, 2011. Dated this February 4, 2012 Signed: “Dean D. Turner” Signature of Qualified Person Dean D. Turner, CPG #10998 (Professional Seal – AIPG) Name of Qualified Person