REG - Metminco Limited - Maiden Ore Reserve for Miraflores - Update <Origin Href="QuoteRef">MNC.AX</Origin> - Part 4
27/11/2017 07:05
- Part 4: For the preceding part double click ID:nRSa5605Xc
DYNAMI
Environmental Impact Assessment study needed for regulatory permitting in Colombia. Given the current revision to the mine
plan, some additional studies may be required for the areas to which the mine facilities have been relocated. This will be
determined once the final mine plan is developed and the aforementioned gap analysis has been completed but some of this
information has already been gathered to date. As of July 2017, Baseline Study and Environmental Impact Assessment programs have
recommenced. The bulk of the Baseline activities previously completed will be used as background information, however, local
regulations requires all environmental and social baseline data to be no older than 12 months since its collection, thus new
monitoring programs are underway starting Q3 of 2017. The monitoring and environmental inventories consist of:* Fauna and flora
characterisation;
* Underground and surface water characterisation;
* Noise, vibration and air pollution; and
* Potential contaminants from extracted minerals and stored tailings.
This data along with the mineralogical, geological, social and economic aspects of the new project will be used to complete the
Environmental Impact Assessment, as per the Terms of Reference received by Miraflores from the local environmental agency
Corporacion Autonoma Del Risaralda (CARDER) in July 2017. The Environmental Management Plan (EMP) will be drafted once the
environmental impacts are completed and finalised in late 2017. Acid rock drainage characterisation data obtained to date
includes ABA, multi-element analyses, and mineralogical analyses. Column testing was conducted for waste rock and low-grade
stockpile materials. Geochemical evaluation of flotation tailings and cyanide leach tailings was also conducted. Preliminary
results indicate that the flotation tailings and the majority of waste rock are non-PAG (non-potentially acid generating);
whereas the low-grade stockpiles and cyanide leach tailings are PAG (potentially acid generating). Potential for metal leaching
is indicated in the static test data, but further evaluation is in progress to acquire kinetic data for use in geochemical
modelling. The current mine plan does not include low grade stockpiling on surface. The cyanide leach tailings will be placed
underground as part of the mine backfilling requirements. The current environmental strategy includes the use of a large
fraction of the expected tailings flow as underground backfill material. The remaining filtered tailings will be sent to the
tailings management facility where they will be spread and mechanically compacted to achieve an unsaturated, dense and stable
tailings deposit. No pond or water impoundment will exist so there is no potential for infiltration to native soils from the
tailings materials. Laboratory testing completed by ACZ Laboratories in 2012 resulted in Acid Generation Potentials between 0
and 34 and Acid Neutralization Potential between 9 and 140. The potentially acid generating samples were identified as low
grade ore and cyanide leach tailings. Sulphur contents range from 0 to 1.4%. Paste pH ranges from 7.7 to 9.4 with an average of
8.6. It is Miraflores' intention to place the cyanide leach tailings underground. Any low grade material mined will either be
placed back underground or be processed depending on the grade of the materialThe proposed filtered stacked tailings storage
facility will be permitted as part of the EIA application. Any waste dumps permitted in the EIA will be temporary dumps as the
plan is to use all of the waste mined for planned backfilling operations in the mine. Miraflores has received a mine development
permit from the CARDER for the development of 2,000m of underground exploration development which includes 2 permanent waste
dumps and water discharge licence (Resolution 1505 of 7 September 2017).
Infrastructure The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided, or accessed. The Project is a greenfield site, the facilities that will be required to be installed on site include:· Construction DYNAMI GRES
accommodation facilities;· Kitchen and messing facilities;· Main office;· First aid and ambulance post;·
Fuel Handling Facilities;· Mine change house;· Power supply (overhead power line);· Stores and workshops;
andSewage treatment facilities.· Access roads linking the tailing dam and construction camp with the process plant;·
Mining haul roads;· Mining and maintenance workshops;· Warehouse and store;· Administration buildings;·
Laboratory;· Reagents storage building;· Communications upgrade;· Security facilities;· Sewage and water
treatment facilities;· Emergency response facilities including firefighting building and equipment; and· Dedicated
overhead power line. A new overhead power line will be constructed for the process plant, mine, water supply, tailings area,
administration and infrastructure. Power requirements will be as follows:· Process plant 4 x 2,250 kVA;· Mining 1
x 2,000 kVA;· Accommodation 1 x 300 kVA;· Tailings Area 1 x 50 kVA; and· Water Supply 1 x 50 kVA. Each
area will have a dedicated transformer and power supply motor control centre. Power Supply to the site will be via a new
overhead power line from Quinchia. The incoming supply voltage will be 33 kV, with step-down transformers to the site
distribution voltage of 13.8 kV. A medium voltage distribution board installed at the incoming HV switchyard will distribute
power to the outgoing feeders. The new power line will be approximately 8km in length and will be a dedicated line. Water supply
needs for the Project (processing plant and camp) have been assessed and the water balance summary has been carried out. The
processing plant will require a total of 500 m3/day of water to operate. The accommodation camp will require 30 m3/day of
freshwater which will be trucked to site from the local community water supply. The surplus water from mine dewatering
operations will be used for construction works, dust suppression and drilling and/or will be sent to the water treatment plant.
Miraflores have purchased 28 ha of land and intend to purchase a further 100ha as part of the development plan. Suitable sites
for mine portals, haul roads, processing facilities and infrastructure to support those operations has been identified,
geotechnical assessments of the ground conditions made and facility layouts completed as part of the feasibility study. The
area is well serviced with respect to roads. The site is located approximately 7km from the Panamerican highway that runs along
the Cauca River. The road connecting the Panamerican Highway with the town of Quinchia passes within a few kilometres of the
site and is currently being upgraded with 4 of the 7km of road now newly sealed and with the remaining portion of the road
expected to be completed prior to construction commencing. From the newly sealed road access to the site is via an unsealed road
which will require upgrading to allow access for large bulk loads. The feasibility capital estimate allows for the upgrade to
this access road, the mine haul roads and other proposed internal roads for the operation. Sufficient labour is readily
available throughout the region but specifically in Quinchia and in communities immediately surrounding the site. Professional
and experience labour will be sourced from both within and outside of Colombia. The town of Quinchia and surrounding towns have
an adequate supply of suitable accommodation for any labour brought into the area. It is Miraflores's intention to employ labour
locally and where labour is brought into the area from outside, the Company will require that labour to relocate to Quinchia.
Dynami Geo Consulting have completed preliminary basic engineering on the tailings storage facility (TSF). The dry stack
tailings storage facility will receive filtered tailings for spreading and compaction. The final TSF configuration allows for
50% of final tailings to be used as backfill in the underground mine which includes 100% of the concentrate leach residue
tailings.
Cost The derivation of, or assumptions made, regarding projected capital costs in the study. Capital and operating cost estimates have been developed for a mining operation treating 466,628 tonnes per annum of gold and AUSENCO GRES DYNAMI
The methodology used to estimate operating costs. silver bearing ore and includes:· An underground operating mine; and· A gold / silver processing plant recovering
Allowances made for the content of deleterious elements. these metals, utilising a flow sheet comprising crushing, grinding, gravity separation, conventional flotation, cyanide leach
The source of exchange rates used in the study. circuit for the concentrates, concentrate leach residue washing with Merrill Crowe for recovery of the precious
Derivation of transportation charges. metals,concentrate leach tailings detoxification and filtration for mine back fill, flotation tailings filtration for mine
The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc. backfill and dry stack tailings storage and support infrastructure and utilities. The capital and operating cost estimates
The allowances made for royalties payable, both Government and private produced for the establishment of the mine is considered to be an AACE class 3 estimate with a level of accuracy within -10% and
+15%. Costs are presented in United States dollars (US$) and are based on prices in effect during the second quarter of 2017;
no escalation factors have been applied. The exchange rate applied for the operating and capital cost estimates are:* US$1.00 =
A$0.80 (Australian Dollar);
* US$1.00 = E0.85 (Euro); and
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