The Property is located in southern Perú about 150 km by road (90 km straight-line distance) northwest of the city of Arequipa on the border between the District of Huancarqui in the Province of Castilla and the District of Lluta in the Province of Caylloma. The approximate centre of the Property is located at 16°02’ 28” south latitude and 72°14’ 19” west longitude (Universal Transverse Mercator (UTM) 18S 794000E/8224000N using the World Geodetic System (WGS) (WGS84). The Property contains several areas of porphyry-style copper mineralization, of which the two main areas are Zafranal Main and Victoria.

The nearest major centre is Arequipa which is serviced by scheduled flights and is the major supply center for regional mining activity. Approximately 85 km of the estimated 150 km of road between Arequipa and the Property is paved, which includes a section of the Pan-American Highway. The last 65 km is gravel, of which 15 km is via private access road constructed to access the Property.

The regional climate is dry, with temperatures ranging between about 12°C in winter and 28°C in summer. Precipitation is scarce and agriculture generally possible only in river valleys with accessible irrigation. The Property is located outside zones of agricultural activity and there are no communities located on the Property. Characteristic vegetation is comprised generally of scarce grasses, cacti and shrubs. Valley bottoms within the Property are typically filled with active alluvium and are bare of vegetation.

The mineral potential of the Main Zone deposit was initially discovered by artisanal small-scale miners working the narrow gold veins in the nearby batholith formation. Through their exploration of the area, they became aware of surface exposures of copper mineralization and in 2003 brought this mineralization to the attention of Teck geologists who were conducting regional exploration for porphyry deposits. The Zafranal Main Zone was immediately staked by Teck. Currently, activity continues on the periphery of the Zafranal porphyry systems where artisanal miners are allowed to actively mine auriferous quartz veins.

Bedrock within the Property area includes Jurassic volcaniclastic and sedimentary rocks, Cretaceous granodiorite and Paleocene to late Cenozoic diorite intrusives and dikes. Most of these units have been deformed by regional-scale and local shear zones, often resulting in schistose and gneissose textures. The mineral zones of interest are Zafranal Main and Victoria, which have similar bedrock geology but correspond to different structural blocks.