The La Arena gold mine is located in northern Perú, 480 km north-northwest of Lima. The mine consists of two types of mineral deposits: high-sulfidation epithermal oxide gold mineralization hosted in brecciated sandstone within the Chimu Formation, and copper-gold sulfide mineralization hosted in multi-stage porphyry drill/blast intrusives. Operations are currently exploiting the oxide gold reserve by open pit methods using conventional drill/blast, load and haul methods. Ore is truck-dumped onto a leach pad with no crushing or agglomeration required prior to leaching. As of January 1, 2016, Measured and Indicated oxide resources totaled 120.8 million tonnes with an average gold grade of 0.32 g/t and Proven and Probable oxide reserves of 80.3 million tonnes with an average gold grade of 0.36 g/t containing 919,000 ounces of gold. The mine produced a record 230,436 ounces of gold in 2015.
As of January 1, 2016, Measured and Indicated sulfide mineral resources for the La Arena deposit totaled 274 million tonnes with average gold and copper grades of 0.24 g/t and 0.33 percent, respectively. Proven and Probable sulfide reserves are reported at 63.1 million tonnes with average gold and copper grades of 0.31 g/t, and 0.43 percent, respectively.
The La Arena project is situated in the eastern slope of the Western Cordillera, close to the Continental Divide at an average altitude of 3,400 metres above sea level. Politically, the La Arena project is located within the Huamachuco district, the Sánchez Carrión province and the La Libertad region.
The climatological conditions at the La Arena project correspond to typical climatic conditions found in the northern sierra of Peru, where the weather is mainly controlled by the ground elevation; the geographical location, on the eastern side of the Western Cordillera; the precipitation annual regime; and local specific climatic conditions. Wind speed and direction varies according to the season, from June to September the monthly average wind speed is 4.5 metres per second with east direction. From October to May, monthly average wind speeds average 3.7 metres per second with east/west directions.