Example of Business Plan Hassai Mine Sudan

The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator) Red Sea State,
Sudan
NI 43-101 Technical Report
Prepared for
La Mancha Resources Inc. and Ariab Mining Company
Prepared by: Bill Plyley, MAusIMM La Mancha Resources Inc. Jean-Jacques Kachrillo La Mancha Resources Inc. Graeme Baker MAusIMM AMEC Minproc Limited Dean David FAusIMM AMEC Minproc Limited Adam Coulson ACSM, CIMM AMEC Earth & Environmental Ian Thomas MAusIMM Sedgman Limited Remi Bosc MEFG Arethuse Geology Sdn Bhd Clayton Reeves, MSAIMM CSA Global (UK) Simon McCracken MAIG CSA Global (UK)
Effective Date of Report: Effective Date of Mineral Resources: Effective Date of Mineral Reserves:
22 October 2010 31 August 2010 31 December 2009
The Hassai Mine Envisaged Business Plan NI 43-101 Preliminary Assessment Report
IMPORTANT NOTICE
This report was prepared as a National Instrument 43-101 Technical Report for La Mancha Resources Inc. (La Mancha) by AMEC Minproc Limited (AMEC), Arethuse Geology (Arethuse), Sedgman Limited (Sedgman) and CSA Global Pty Ltd (CSA Global). The quality of information, conclusions and estimates contained herein is consistent with the level of effort involved in the consultants services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions and qualifications set forth in this report. This report is intended for use by La Mancha subject to the terms and conditions of its contracts with AMEC and the other consultants. This contract permits La Mancha to file this report as a Technical Report with Canadian Securities Regulatory Authorities pursuant to National Instrument 43-101 Standards of Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that partys sole risk.
FINAL Rev 0 22 Oct 2010
Page i
Table of Contents
Disclaimer....................................................................................................................... i
1. 1.1 1.2 1.3 SUMMARY ................................................................................................................. 1 BACKGROUND ................................................................................................................................1 BUSINESS PLAN .............................................................................................................................1 RESOURCES AND RESERVES ......................................................................................................1 1.3.1 Gold Resources and Reserves ..........................................................................................1 1.3.2 VMS Resources.................................................................................................................3 USE OF INFERRED RESOURCES IN BUSINESS PLAN ................................................................4 MINING ............................................................................................................................................5 1.5.1 Kamoeb Open Pit ..............................................................................................................5 1.5.2 Heap Leach Tailings and Stockpile Reclaim ......................................................................7 1.5.3 Hadal Awatib Open Pit.......................................................................................................7 1.5.4 Hassai South Underground Mine Design ...........................................................................8 1.5.5 Production Schedules ........................................................................................................9 1.5.6 Mine Capital Cost ............................................................................................................14 1.5.7 Mine Operating Cost ........................................................................................................ 15 PROCESSING ................................................................................................................................ 15 1.6.1 CIL Plant .......................................................................................................................... 15 1.6.2 VMS Concentrator ........................................................................................................... 17 INFRASTRUCTURE ....................................................................................................................... 20 1.7.1 Power .............................................................................................................................. 20 1.7.2 Water ............................................................................................................................... 21 1.7.3 Accommodation ............................................................................................................... 21 1.7.4 Access and Port ..............................................................................................................21 ENVIRONMENTAL ......................................................................................................................... 21 CAPITAL COSTS ........................................................................................................................... 21 1.9.1 General............................................................................................................................ 21 1.9.2 CIL Plant Development .................................................................................................... 22 1.9.3 VMS Concentrator Development ..................................................................................... 22 OPERATING COSTS ..................................................................................................................... 22 1.10.1 General............................................................................................................................ 22 1.10.2 CIL Plant .......................................................................................................................... 23 1.10.3 VMS Concentrator ........................................................................................................... 23 PROJECT SCHEDULE .................................................................................................................. 23 FINANCIAL MODELLING ............................................................................................................... 24 CONCLUSIONS ............................................................................................................................. 27 RECOMMENDATIONS .................................................................................................................. 28 INTRODUCTION ...................................................................................................... 30 BACKGROUND .............................................................................................................................. 30 SCOPES OF WORK....................................................................................................................... 30 PRINCIPAL SOURCES OF INFORMATION .................................................................................. 31 PARTICIPANTS AND PERSONAL SITE INSPECTIONS ............................................................... 31 INDEPENDENCE ........................................................................................................................... 33
1.4 1.5
1.6
1.7
1.8 1.9
1.10
1.11 1.12 1.13 1.14 2. 2.1 2.2 2.3 2.4 2.5
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3. 4. 4.1 4.2 4.3 4.4 4.5 4.6 4.7 5. 5.1 5.2 5.3 5.4
RELIANCE ON OTHER EXPERTS ........................................................................... 34 PROPERTY DESCRIPTION AND LOCATION ........................................................... 35 LOCATION ..................................................................................................................................... 35 MINING CLAIM DESCRIPTION GOLD ....................................................................................... 37 MINING CLAIMS BASE METALS ................................................................................................ 42 OWNERSHIP OF MINERAL RIGHTS ............................................................................................ 42 MINERAL ROYALTIES................................................................................................................... 42 ENVIRONMENTAL OBLIGATIONS ................................................................................................ 42 RELATIONSHIP BETWEEN AMC AND THE SUDANESE GOVERNMENT .................................. 42 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ..................................................................................................... 43 ACCESS ......................................................................................................................................... 43 PORT FACILITIES.......................................................................................................................... 43 CLIMATE ........................................................................................................................................ 44 INFRASTRUCTURE ....................................................................................................................... 44 5.4.1 Buildings and Mine Camp ................................................................................................ 44 5.4.2 Other Offices ................................................................................................................... 44 5.4.3 Logistics .......................................................................................................................... 44 LAND USAGE ................................................................................................................................ 45 PHYSIOGRAPHY AND VEGETATION........................................................................................... 45 SURFACE AND GROUNDWATER ................................................................................................ 45 HISTORY ................................................................................................................. 46 PRE-COMINOR .............................................................................................................................. 46 COMINOR ...................................................................................................................................... 46 GEOLOGICAL SETTING .......................................................................................... 48 REGIONAL GEOLOGY .................................................................................................................. 48 LOCAL GEOLOGY ......................................................................................................................... 48 DEPOSIT TYPES ..................................................................................................... 49 INTRODUCTION ............................................................................................................................ 49 GOLD DEPOSITS .......................................................................................................................... 49 8.2.1 Oxide and Quartz-Kaolinite-Barite (SBR) Gold Deposits ............................................... 49 8.2.2 Gold-bearing Quartz Veins .............................................................................................. 51 8.2.3 Gold-rich Barite Lenses Without Proximal Gossan Development .................................... 52 VOLCANOGENIC CU-ZN-AU-AG MASSIVE SULPHIDE DEPOSITS ............................................ 52 MINERALISATION .................................................................................................. 53 BASE METAL MASSIVE SULPHIDE DEPOSITS ........................................................................... 53 GOLD DEPOSITS .......................................................................................................................... 53 9.2.1 Supergene (SBR) Deposits Overlying VMS Mineralisation .............................................. 53 9.2.2 Quartz Veins .................................................................................................................... 53 EXPLORATION ........................................................................................................ 54 EXPLORATION METHODS ...........................................................................................................54
5.5 5.6 5.7 6. 6.1 6.2 7. 7.1 7.2 8. 8.1 8.2
8.3 9. 9.1 9.2
10. 10.1
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10.2 10.3
SURVEYING .................................................................................................................................. 55 MAIN RESULTS ............................................................................................................................. 55 10.3.1 VMS Prior to 2007 ........................................................................................................ 55 10.3.2 2007 VTEM Geophysical Survey ..................................................................................... 56 DRILLING ................................................................................................................ 59 INTRODUCTION ............................................................................................................................ 59 DRILLING: 1993-2006 .................................................................................................................... 59 RC AND CORE DRILLING: 2008/09 .............................................................................................. 59 11.3.1 Hassai South Drilling ....................................................................................................... 60 11.3.2 Hadal Awatib East Drilling ............................................................................................... 63 11.3.3 Kamoeb Drilling ...............................................................................................................64 HEAP LEACH RESIDUE DRILLING ............................................................................................... 65 SAMPLING METHOD AND APPROACH................................................................... 66 DRILLING, SAMPLING AND SAMPLE PREPARATION ................................................................ 66 RC AND CORE RECOVERY HASSAI SOUTH AND HADAL AWATIB EAST ............................. 66 RC AND CORE RECOVERY KAMOEB ...................................................................................... 66 AUGER RECOVERY TAILINGS .................................................................................................. 66 SAMPLE PREPARATION, ANALYSES AND SECURITY .......................................... 67 INTRODUCTION ............................................................................................................................ 67 13.1.1 Gold ................................................................................................................................. 67 13.1.2 Base Metals ..................................................................................................................... 67 13.1.3 Heap Leach Tailings Gold ............................................................................................... 67 SAMPLING, SAMPLE PREPARATION AND STORAGE ............................................................... 67 13.2.1 Gold Exploration: 1992 to 2007 ....................................................................................... 67 13.2.2 Gold Exploration: 2008/09 ............................................................................................... 68 13.2.3 Base Metal Sulphide Exploration ..................................................................................... 69 13.2.4 Heap Auger Drill Samples ............................................................................................... 70 DRY BULK DENSITY ..................................................................................................................... 71 13.3.1 Core Samples ..................................................................................................................71 13.3.2 Auger Samples ................................................................................................................72 DATA VERIFICATION ............................................................................................. 73 DATA COLLECTION ...................................................................................................................... 73 ASSAY DATA QUALITY ................................................................................................................. 73 14.2.1 Blanks..............................................................................................................................75 14.2.2 Standards ........................................................................................................................ 75 14.2.3 Duplicates ........................................................................................................................ 79 14.2.4 Conclusions ..................................................................................................................... 79 KAMOEB TWIN HOLES ................................................................................................................. 80 GEOLOGICAL DATA...................................................................................................................... 80 SURVEY DATA .............................................................................................................................. 80 DENSITY DATA ............................................................................................................................. 80 DATABASE VERIFICATION........................................................................................................... 80 14.7.1 Database Consistency Internal Review ........................................................................ 80
11. 11.1 11.2 11.3
11.4 12. 12.1 12.2 12.3 12.4 13. 13.1
13.2
13.3
14. 14.1 14.2
14.3 14.4 14.5 14.6 14.7
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14.8
14.7.2 External Independent Data Validation ............................................................................. 81 14.7.3 Independent Sampling and Analysis (Gold Only)............................................................. 83 AUGER PROGRAM DATA VERIFICATION ................................................................................... 83 14.8.1 Drill Logs and Sampling Information ................................................................................ 83 14.8.2 Assay Data Quality .......................................................................................................... 84 14.8.3 Auger Samples Conclusions ......................................................................................... 84 ADJACENT PROPERTIES ....................................................................................... 85 MINERAL PROCESSING AND METALLURGICAL TESTING ................................... 86 HEAP LEACH TESTWORK ............................................................................................................ 86 16.1.1 Heap Leach Testwork ...................................................................................................... 86 CIL TESTWORK ............................................................................................................................. 87 16.2.1 Quartz Ore (Kamoeb South Deposit) ............................................................................... 87 16.2.2 Heap Leach Residue ....................................................................................................... 91 16.2.3 Metallurgical Gold Recovery for the CIL Economic Model (Includes Operating Cost Adjustments for Acidic SBR Material) .............................................................................. 97 VMS CONCENTRATOR TESTWORK............................................................................................ 99 16.3.1 Introduction ...................................................................................................................... 99 16.3.2 Sample Selection............................................................................................................. 99 16.3.3 Flotation Testwork ......................................................................................................... 101 16.3.4 Tailings Cyanide Leaching Testwork ............................................................................. 107 16.3.5 Metallurgical Projection and Metallurgical Parameters for Design ................................. 107 CONCENTRATOR FLOW SHEET DEVELOPMENT.................................................................... 109 16.4.1 Process Design Criteria and Mass Balance ................................................................... 111 16.4.2 Comminution Circuit ...................................................................................................... 111 16.4.3 Flotation Circuit.............................................................................................................. 111 16.4.4 Regrind .......................................................................................................................... 113 16.4.5 Concentrate Handling .................................................................................................... 114 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ............................. 115 GENERAL .................................................................................................................................... 115 VMS RESOURCES: HADAL AWATIB EAST AND HASSAI SOUTH ............................................ 115 17.2.1 Geological Model ........................................................................................................... 115 17.2.2 Cut-off and Domain Modelling ....................................................................................... 117 17.2.3 Down-dip Drill Holes within the Supergene Domain....................................................... 118 17.2.4 Overall Population Distribution and Top-cuts ................................................................. 118 17.2.5 Dry Bulk Density ............................................................................................................ 119 17.2.6 Correlations Between Elements..................................................................................... 120 17.2.7 Variography and Interpolation Parameters .................................................................... 120 17.2.8 Block Model ...................................................................................................................121 17.2.9 Confidence Classification and Mineral Resource Reporting under NI 43-101 ................ 126 KAMOEB RESOURCES ............................................................................................................... 127 17.3.1 Geological Model ........................................................................................................... 127 17.3.2 Cut-Off and Domain Modelling ...................................................................................... 129 17.3.3 Population Distribution and Top-cuts ............................................................................. 129 17.3.4 Dry Bulk Density ............................................................................................................ 130
15. 16. 16.1 16.2
16.3
16.4
17. 17.1 17.2
17.3
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17.4
17.5
17.3.5 Variography and Interpolation Parameters .................................................................... 130 17.3.6 Block Model ...................................................................................................................131 17.3.7 Confidence Classification and Mineral Resource Reporting Under NI 43-101 ............... 134 TAILINGS RESOURCES .............................................................................................................. 136 17.4.1 Resources Estimated by Arethuse Using Conventional Resource Modelling Techniques Heap 63A to 113 ..................................................................................... 136 17.4.2 Additional External Areas: Heaps 1-63, 67-71 .............................................................. 143 17.4.3 Material Stacked in 2008 2009 (Heaps 114 to 136) .................................................... 143 17.4.4 Additional Material to be Stacked, 2010-2012 ............................................................... 146 MINERAL RESOURCE STATEMENT .......................................................................................... 147 17.5.1 Overall AMC Resources 31 December 2009 .............................................................. 147 17.5.2 Additional Heap Leach Tailings Resources ................................................................... 149 17.5.3 Mineral Reserve Statement ........................................................................................... 150 OTHER RELEVANT DATA AND INFORMATION ................................................... 151 MINING STUDIES GENERAL STATEMENT REGARDING USE OF INFERRED RESOURCES ............................................................................................................................... 151 CSA MINING STUDIES KAMOEB ............................................................................................. 151 18.2.1 Mining Study Background .............................................................................................. 151 18.2.2 Study Approach ............................................................................................................. 151 18.2.3 Mining Methods ............................................................................................................. 152 18.2.4 Pit Optimisation .............................................................................................................152 18.2.5 Mine Design ..................................................................................................................161 18.2.6 Waste Handling ............................................................................................................. 163 18.2.7 Mining Inventories ......................................................................................................... 163 18.2.8 Ore Production Schedules ............................................................................................. 164 18.2.9 Operating Costs............................................................................................................. 167 18.2.10 Mine Capital Costs ........................................................................................................ 169 CSA MINING STUDY ACIDIC SBR ORE STOCKPILES AND HEAP LEACH TAILINGS .......... 170 18.3.1 Introduction .................................................................................................................... 170 18.3.2 Heap Leach Tailings and Acidic SBR Stockpile Reclamation Schedule ........................ 173 18.3.3 Heap Leach Tailings and Acidic SBR Stockpile Reclamation Operating Costs.............. 175 18.3.4 Heap Leach Tailings and Acidic SBR Stockpile Reclamation Mine Capital Costs ......... 177 AMEC MINING STUDIES VMS DEPOSITS .............................................................................. 177 18.4.1 Mining Study Background .............................................................................................. 177 18.4.2 Study Approach ............................................................................................................. 177 18.4.3 Mining Methods ............................................................................................................. 177 18.4.4 Pit Optimisation .............................................................................................................179 18.4.5 Mine Design ..................................................................................................................185 18.4.6 Waste Handling ............................................................................................................. 190 18.4.7 Mining Inventories ......................................................................................................... 192 18.4.8 Ore Production Schedules ............................................................................................. 194 18.4.9 Mine Operating Costs .................................................................................................... 199 18.4.10 Mine Capital Costs ........................................................................................................ 202 GEOTECHNICAL INPUT .............................................................................................................. 204 18.5.1 Kamoeb South AMC ................................................................................................... 204 18.5.2 AMEC Geotechnical Input Introduction ....................................................................... 204
18. 18.1 18.2
18.3
18.4
18.5
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18.6 18.7 18.8
18.9
18.10 18.11 18.12 18.13
18.14
18.15
18.16
18.5.3 Geotechnical/Geological Domains ................................................................................. 204 18.5.4 Major Joint Set Orientation ............................................................................................ 205 18.5.5 Material Testing .............................................................................................................207 18.5.6 Rock Mass Classification ............................................................................................... 207 18.5.7 Design Criteria for Hadal Awatib and Hassai South Open Pits ...................................... 210 18.5.8 Design Criteria for Hassai South Underground Open Stoping ....................................... 212 HYDROGEOLOGY AND HYDROLOGY INPUT ........................................................................... 216 SEISMICITY ................................................................................................................................. 217 PROCESS PLANT DESCRIPTIONS ............................................................................................ 217 18.8.1 CIL Plant ........................................................................................................................ 217 18.8.2 VMS Concentrator Process Plant Description ............................................................... 221 PROJECT INFRASTRUCTURE AND SERVICES ........................................................................ 228 18.9.1 Water Supply .................................................................................................................228 18.9.2 Power Supply ................................................................................................................ 229 18.9.3 Accommodation ............................................................................................................. 230 18.9.4 Airstrip ........................................................................................................................... 230 18.9.5 VMS Concentrator Tailings Storage Facility .................................................................. 230 18.9.6 Other Infrastructure ....................................................................................................... 237 MARKETS .................................................................................................................................... 237 ENVIRONMENTAL AND SOCIAL CONSIDERATIONS ............................................................... 238 TAXES AND ROYALTIES ............................................................................................................ 239 CAPITAL COST ESTIMATE .........................................................................................................239 18.13.1 General.......................................................................................................................... 239 18.13.2 Mining ............................................................................................................................ 240 18.13.3 CIL Plant ........................................................................................................................ 240 18.13.4 VMS Concentrator ......................................................................................................... 241 OPERATING COST ESTIMATE ................................................................................................... 248 18.14.1 CIL Plant ........................................................................................................................ 248 18.14.2 VMS Concentrator ......................................................................................................... 252 18.14.3 Mining Costs ..................................................................................................................256 18.14.4 General and Administration ........................................................................................... 256 PROJECT ECONOMICS .............................................................................................................. 257 18.15.1 Overview ....................................................................................................................... 257 18.15.2 Individual Phase Description ......................................................................................... 263 PROJECT IMPLEMENTATION .................................................................................................... 272 18.16.1 Project Schedule ........................................................................................................... 272 18.16.2 Project Implementation Summary .................................................................................. 272 18.16.3 Project Implementation Scope ....................................................................................... 273 18.16.4 HSEC ............................................................................................................................ 273 18.16.5 Long Lead Items ............................................................................................................ 273 18.16.6 Logistics ........................................................................................................................ 274 18.16.7 Training ......................................................................................................................... 274 INTERPRETATION AND CONCLUSIONS .............................................................. 275
19.
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20. 20.1 20.2
20.3
20.4 20.5
20.6 20.7 21. 21.1 21.2 22. 22.1 22.2 23. 24. 25.
ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES ....................... 277 BACKGROUND ............................................................................................................................ 277 MINING ........................................................................................................................................ 279 20.2.1 Overview ....................................................................................................................... 279 20.2.2 Geotechnical Evaluation ................................................................................................ 281 20.2.3 Grade Control and Mining.............................................................................................. 281 BENEFICIATION PLANT .............................................................................................................. 284 20.3.1 Overview ....................................................................................................................... 284 20.3.2 Process Flow Sheets ..................................................................................................... 285 20.3.3 Reagents ....................................................................................................................... 288 20.3.4 Gold Reconciliation at the Plant ..................................................................................... 288 20.3.5 Mine/Plant Gold Reconciliation ...................................................................................... 288 TAILINGS AND WASTE MANAGEMENT ..................................................................................... 289 INFRASTRUCTURE ..................................................................................................................... 289 20.5.1 Buildings and Mine Camp .............................................................................................. 289 20.5.2 Other Offices .................................................................................................................289 20.5.3 Logistics ........................................................................................................................ 289 20.5.4 Water Supply .................................................................................................................290 SOCIAL PROGRAM ..................................................................................................................... 291 FINANCIAL ANALYSIS ................................................................................................................ 291 RECOMMENDATIONS ........................................................................................... 293 CIL PHASE ................................................................................................................................... 293 VMS PHASE................................................................................................................................. 293 REFERENCES........................................................................................................ 294 GEOLOGY AND RESOURCES.................................................................................................... 294 GEOTECHNICAL ......................................................................................................................... 294 DATE AND SIGNATURE PAGE ............................................................................. 295 ILLUSTRATIONS ................................................................................................... 305 APPENDIX 1 RECENT HASSAI SOUTH, HADAL AWATIB AND KAMOEB DRILL INTERSECTIONS ....................................................................................... 306
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List of Tables
Table 1.1 Table 1.2 Table 1.3 Table 1.4 Table 1.5 Table 1.6 Table 1.7 Table 1.8 Table 1.9 Table 1.10 Table 1.11 Table 1.12 Table 1.13 Table 1.14 Table 4.1 Table 4.2 Table 5.1 Table 14.1 Table 14.2 Table 14.3 Table 14.4 Table 14.5 Table 16.1 Table 16.2 Table 16.3 Table 16.4 Table 16.5 Table 16.6 Table 16.7 Table 16.8 Table 16.9 Table 16.10 Table 16.11 Table 16.12 Table 16.13 Table 16.14 Table 16.15 Table 16.16 Table 16.17 Table 16.18 Table 16.19 Table 16.20 Table 16.21 Table 16.22 Table 16.23 Gold Mineral Resources Summary (31 December 2009) ................................................................. 2 Mineral Reserves Summary (31 December 2009) ............................................................................ 2 Additional Gold Mineral Resources in Heap Leach Tailings Under Irrigation.................................... 3 VMS Mineral Resources, 31 December 2009 ................................................................................... 3 Pit Design Parameters ........................................................................................................................ 5 Hadal Awatib Open Pit Design Parameters ....................................................................................... 7 Kamoeb Yearly Mining Schedule ..................................................................................................10 Mining Schedule for Heap Leach and Stockpile Reclaim ................................................................11 Mining Inventory for CIL Operation...................................................................................................12 Mine Capital Cost Estimate ..............................................................................................................14 Mine Operating Cost Estimate..........................................................................................................15 Average Concentrate Production .....................................................................................................20 Capital Cost Estimate, 5 Mt/a VMS Concentrator Phase ................................................................22 Financial Highlights for Proposed VMS Project, by Phase ..............................................................26 Coordinates of AMCs Reserved Areas ...........................................................................................38 Coordinates of Mining Leases ..........................................................................................................40 Port Sudan Overview ........................................................................................................................43 Characteristics of Standard Reference Materials.............................................................................76 CRM Assay Results Oxide Gold ...................................................................................................77 CRM Assay Results VMS Gold .....................................................................................................78 CRM Assay Results VMS Copper ................................................................................................78 CRM Assay Results VMS Zinc......................................................................................................79 Quartz Ore Comminution Parameters..............................................................................................88 Quartz Composite Head Assay ........................................................................................................89 Gravity Separation Results Summary ..............................................................................................90 Quartz Ore Grind vs Leach Recovery Results .................................................................................90 Air vs Oxygen Sparging Leach Summary Quartz Ore ..................................................................91 Quartz Ore Leach Cyanide Sensitivity .............................................................................................91 Heap Leach Bulk Composite Assay .................................................................................................92 Heap Leach Bulk Composite Gravity Separation Results Summary ..............................................93 Heap Leach Grind vs Leach Recovery Results ...............................................................................94 Lead Nitrate Addition Results ...........................................................................................................95 Pre-Aeration Testing Results............................................................................................................96 Heap Leach Variability Testing Results............................................................................................96 Breakdown of Heap Leach Mining Inventory Resources.................................................................97 Reagent Consumption and Costs for Heap Leach and Acidic SBR Material..................................99 Head Sample Chemical Analysis Results ......................................................................................100 Head Sample Mineral Distribution (% Mass) .................................................................................100 Rougher Flotation Kinetic Results ..................................................................................................102 Cleaner Flotation Results for Composite 1.....................................................................................104 Cleaner Flotation Results for Composite 3.....................................................................................105 Locked Cycle Testwork Results .....................................................................................................106 Tailings Cyanide Leach Testwork ..................................................................................................107 Testwork and Design Ore Grades..................................................................................................108 Design Concentrate and Tailing Grades ........................................................................................108
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Table 16.24 Table 16.25 Table 16.26 Table 16.27 Table 17.1 Table 17.2 Table 17.3 Table 17.4 Table 17.5 Table 17.6 Table 17.7 Table 17.8 Table 17.9 Table 17.10 Table 17.11 Table 17.12 Table 17.13 Table 17.14 Table 17.15 Table 17.16 Table 17.17 Table 17.18 Table 17.19 Table 17.20 Table 17.21 Table 17.22 Table 17.23 Table 17.24 Table 18.1 Table 18.2 Table 18.3 Table 18.4 Table 18.5 Table 18.6 Table 18.7 Table 18.8 Table 18.9 Table 18.10 Table 18.11 Table 18.12 Table 18.13 Table 18.14 Table 18.15 Table 18.16
Design Calculated Stage Recoveries.............................................................................................108 Slurry Flows (m3/h) and Differences for the Different Ore Types...................................................111 Flotation Design Basis ....................................................................................................................112 Design Basis Concentrate Handling...............................................................................................114 Hadal Awatib East (HAE) and Hassai South (HASS) Sample Statistics ....................................118 Hassai South Density on Cores within Sulphide Mineralisation .................................................119 Hassai South Primary Ore Correlation Matrix ..........................................................................120 Block Model Definition ....................................................................................................................121 Kriging Search Ellipsoids ................................................................................................................122 Hadal Awatib East (HAE) and Hassai South (HASS) Resources Estimates as of 31 December 2009 .........................................................................................................................127 Proposed Gold Top-cuts for Different Domains (Au FA and Au Cy) .............................................130 Kamoeb Block Model Definition .....................................................................................................131 Kamoeb Interpolation Parameters..................................................................................................132 Kamoeb Group NI 43-101 Gold Mineral Resources 1 January 2010 .....................................135 Tailings Resource Basic Statistics Au Fire Assay (g/t) ...............................................................138 Tailings Block Model Details........................................................................................................139 Tailings Grade Interpolation Parameters.....................................................................................140 Hassai Tailings Resources (Drilled, as of 31 December 2009) .....................................................143 Hassai Tailings from Active Heap Material, heaps 114-136, CSA September 2010 (Cyanidable Au) ..............................................................................................................................146 Material Currently Under Irrigation (Heaps 137-141, Cyanidable Au) ...........................................146 Oxide Mineral Resources, 31 December 2009 ..............................................................................147 Quartz Ore Mineral Resources, 31 December 2009 .....................................................................148 Tailings Mineral Resources, 31 December 2009 ...........................................................................148 Stockpile Mineral Resources, 31 December 2009.........................................................................148 Hassai Mine Combined Gold Mineral Resources, 31 December 2009.........................................149 VMS Mineralisation Mineral Resources, 31 December 2009 ........................................................149 Hassai Tailings from Active Heap Material, Heaps 114-136, CSA September 2010 (cyanidable Au) ...............................................................................................................................150 Hassai Mine Mineral Reserves, 31 December 2009 .....................................................................150 Kamoeb South Whittle Input Parameters .......................................................................................154 Kamoeb North Whittle Input Parameters .......................................................................................155 Kamoeb South and Kamoeb North Resource Model Extents .......................................................156 Mining Costs Applied in the Whittle Optimisations .........................................................................157 Processing Costs Applied in the Whittle Optimisations .................................................................157 Pit Design Parameters ....................................................................................................................161 Kamoeb South and Kamoeb North Waste Dump Quantities ........................................................163 Mining Inventory Kamoeb South Open Pit ..................................................................................163 Mining Inventory Kamoeb North Open Pit...................................................................................164 Kamoeb Yearly Mining Schedule ................................................................................................165 Operating Costs Schedule Kamoeb Open Pits...........................................................................168 Replacement Capital Cost Summary Kamoeb Open Pits ..........................................................169 Heap Leach Tailings Inventory .......................................................................................................171 Acidic SBR Stockpile Inventory ......................................................................................................172 Hassai Acidic SBR Stockpile and Heap Leach Tailings Reclamation Schedule...........................174 Operating Costs Schedule Heap Leach Tailings and Acidic SBR Stockpile Reclamation ........176
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Table 18.17 Table 18.18 Table 18.19 Table 18.20 Table 18.21 Table 18.22 Table 18.23 Table 18.24 Table 18.25 Table 18.26 Table 18.27 Table 18.28 Table 18.29 Table 18.30 Table 18.31 Table 18.32 Table 18.33 Table 18.34 Table 18.35 Table 18.36 Table 18.37 Table 18.38 Table 18.39 Table 18.40 Table 18.41 Table 18.42 Table 18.43 Table 18.44 Table 18.45 Table 18.46 Table 18.47 Table 18.48 Table 18.49 Table 18.50 Table 18.51 Table 18.52 Table 18.53 Table 18.54 Table 18.55 Table 18.56 Table 18.57 Table 18.58 Table 18.59 Table 18.60 Table 18.61 Table 18.62 Table 18.63
Whittle Input Parameters ................................................................................................................180 Hassai South Underground Resource Model Update ................................................................181 Hassai South Resource Model Consolidated Grades ................................................................181 Hassai South Underground Resource Model Update ................................................................185 Hassai South Underground Resource Model Consolidated Grades..........................................186 Hassai South Underground Resource Model (Cut-off 1.5% Cueqm)..........................................186 Hadal Awatib Waste Dump Quantities ...........................................................................................191 Mining Inventory Hassai South Underground .............................................................................193 Undiluted Mining Inventory Sensitivity Hassai South Underground ...........................................193 Mining Inventory Hadal Awatib 5 Mt/a Open Pit .........................................................................194 Hassai South Underground Mining Schedule .............................................................................195 Hadal Awatib 5 Mt/a Mining Schedule ........................................................................................197 Unit Operating Costs Hassai South Underground ......................................................................200 Unit Operating Costs Hadal Awatib Open Pit..............................................................................201 Capital Cost Summary Hassai South Underground ...................................................................202 Capital Cost Summary Hadal Awatib Open Pit Options .............................................................203 Summary of Probable Major Joint Set Orientations .......................................................................205 Summary of Previous Laboratory Testing ......................................................................................207 Hadal Awatib Summary of Rock Mass Properties by Domain and Stope Zone ........................207 Hassai South Summary of rock Mass Properties by Domain and Stope Zone .........................208 Summary of Bench Face Rock Mass Classification ......................................................................209 Summary of Assumed in situ Stress Regime.................................................................................209 Hadal Awatib Summary of Existing and Proposed Slope Design Crieria...................................211 Hassai South Summary of Existing and Proposed Slope Design Criteria .................................212 Summary of Simplified Design Rock Mass Properties ..................................................................213 Summary of Stope Surface Stability Criteria ..................................................................................214 Groundwater Chemical Analysis, Hadal Awatib and Hassai South...............................................217 Summary of Major Design Criteria .................................................................................................218 Crushing Equipment .......................................................................................................................222 Cleaner Flotation Equipment ..........................................................................................................224 Concentrate Handling Equipment ..................................................................................................224 Concentrate Production ..................................................................................................................225 Design Raw Water Consumption (no return from TSF).................................................................227 Water Pipeline Summary ................................................................................................................229 Plant Power Requirements (MW)...................................................................................................229 Environmental Assessment Scoring Criteria ..................................................................................231 Disposal System Ranking...............................................................................................................234 Mine Capital Cost Estimate Summary Kamoeb, Hassai South and Hadal Awatib ....................240 Estimated Capital Costs, 3.0 Mt/a CIL Plant ..................................................................................241 Concentrator Capital Cost Estimate Summary by Area.................................................................246 Concentrator Phase Sustaining Capital Estimate Allowance ........................................................248 Total Annual Operating Cost Estimate, 3 Mt/a CIL Plant ...............................................................249 Annual Processing Plant Labour Costs, 3 Mt/a CIL Plant .............................................................250 LOM Plant Consumable Costs, 3 Mt/a CIL Plant...........................................................................251 Annual Maintenance Consumable Costs, 3 Mt/a CIL Plant...........................................................251 Estimated Annual Power Costs, 3 Mt/a CIL Plant..........................................................................252 Average Process Operating Costs, 5 Mt/a VMS Concentrator .....................................................253
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Table 18.64 Table 18.65 Table 18.66 Table 18.67 Table 18.68 Table 18.69 Table 18.70 Table 18.71 Table 18.72 Table 18.73 Table 18.74 Table 18.75 Table 18.76 Table 18.77 Table 18.78 Table 18.79 Table 20.1 Table 20.2 Table 20.3 Table 20.4 Table 20.5
Summary of Operations Labour Structure, 5 Mt/a VMS Concentrator ..........................................254 Major Reagent Costs, 5 Mt/a VMS Concentrator...........................................................................254 Power Costs, 5 Mt/a VMS Concentrator ........................................................................................255 Consumables Cost Summary, 5 Mt/a VMS Concentrator .............................................................255 Maintenance Materials, 5 Mt/a VMS Concentrator ........................................................................256 Summary of LOM Mine Operating Cost Estimates ........................................................................256 AMC 2009 G&A Costs in Euros as Basis for Scoping Study.........................................................257 Financial Highlights for Proposed VMS Project, by Phase ............................................................260 Sensitivity Analysis Matrix Gold Price ..........................................................................................261 Sensitivity Analysis Matrix Operating Costs ................................................................................262 Production and Cashflow Projections Heap Leach Project ........................................................264 Production and Cashflow Projections CIL Phase .......................................................................266 Production and Cashflow Projections VMS Phase .....................................................................268 Sensitivity of VMS Phase Economics to Metal Price Changes .....................................................269 Production and Cashflow Outcomes CIL+VMS Phases ............................................................271 Current Equipment Lead Times .....................................................................................................274 AMC Production History .................................................................................................................279 AMC Mobile Equipment Fleet as at 31/12/2009 ............................................................................281 Geology Mine Reconciliation for Depleted Deposits ......................................................................283 Reagents Used at the Hassai Heap Leach Plant...........................................................................288 Cashflow Analysis of Current Operation ........................................................................................291
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List of Figures
Figure 1.1 Figure 1.2 Figure 1.3 Figure 1.4 Figure 1.5 Figure 1.6 Figure 1.7 Figure 1.8 Figure 1.9 Figure 1.10 Figure 1.11 Figure 4.1 Figure 4.2 Figure 4.3 Figure 6.1 Figure 8.1 Figure 8.2 Figure 10.1 Figure 10.2 Figure 10.3 Figure 11.1 Figure 11.2 Figure 11.3 Figure 11.4 Figure 11.5 Figure 14.1 Figure 16.1 Figure 16.2 Figure 16.3 Figure 17.1 Figure 17.2 Figure 17.3 Figure 17.4 Figure 17.5 Figure 17.6 Figure 17.7 Figure 17.8 Figure 17.9 Figure 17.10 Kamoeb South Pit Design Plan View ........................................................................................... 6 Kamoeb North Pit Design Plan View............................................................................................ 6 Hadal Awatib Pit Design 5 Mt/a ....................................................................................................... 8 Hassai South Development Long Section ...................................................................................... 9 Kamoeb Yearly Mining Profile .......................................................................................................10 Hassai Acidic SBR Stockpile and Heap Leach Tailings Yearly Reclamation Schedule Graph ................................................................................................................................................12 Hassai South Underground Stoping Schedule (Ore) ....................................................................13 Hadal Awatib 5 Mt/a Ore Mining Profile ........................................................................................13 Hadal Awatib 5 Mt/a Mining Profile................................................................................................14 Hassai Mine Envisaged Business Plan Summary Project Schedule ...........................................24 Metal Production Profile for Phased VMS Project ...........................................................................25 Location of the Hassai Project ..........................................................................................................36 Prospecting Licences........................................................................................................................37 Sudan Gold and Iron Concessions Map ..........................................................................................39 Hassai Project Location of Mines and Prospects..........................................................................47 Diagrammatic Cross-section Showing Relationship of Ariab Deposits ...........................................50 Kamoeb Geology Map......................................................................................................................51 VTEM Geophysical Survey Basis ....................................................................................................56 VTEM Response Types ...................................................................................................................57 VTEM Geophysical Anomaly at Hadal Awatib .................................................................................58 Hassai South Drill Hole Location Plan (AMC, 2009 200x100 m Grid)..........................................61 Cross-section Through Hasai South Showing Relationship Between Intersected and True Thickness ..........................................................................................................................................62 Hadal Awatib East Drill Hole Location Plan (AMC, 2009 100x50 m Grid)....................................63 Hadal Awatib Relationship Between Intersected and True Width ................................................64 Kamoeb Drill Hole Location and Topographic Plan - 250 x 250m grid (UTM coordinates 36N, Adindan Datum) .......................................................................................................................65 Kamoeb 2003 AMC/OMAC Check Assay (Grove, 2003) .............................................................74 Heap Leach Grind Size NPV Trend .................................................................................................95 Locked Cycle Testwork Flow Sheet ...............................................................................................101 5 Mt/a Block Flow Diagram.............................................................................................................110 Hassai South Main Cu-Au Ore Bodies Long Section South to North (100 m Grid) ................116 Hadal Awatib East : Surface Trace of Main Mineralised Bodies ...................................................117 Hadal Awatib East Validation Chart for Sulphide Ore Grade per Vertical Profile ....................123 Hadal Awatib East Block Model : Oblique Views Au, Cu, Zn, CuEq, AuEq, Resources Category..........................................................................................................................................124 Hassai South Block Model : Oblique Views Au, Cu, Zn, CuEq, AuEq .......................................125 Kamoeb Area Distribution of Mineralised Veins - 2009 model ...................................................128 Kamoeb South Validation Chart: Block Model vs Drill Holes Data by Cross-section....................134 Comparison of Topography November 2007 (Top), October 2008 (middle) and December 2009 (Bottom) .................................................................................................................................137 Tailings Model: Comparison Between Block Model and Drill Hole Data (2007/8 model) .............141 Grade Control v Stacked Grade .....................................................................................................145
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Figure 17.11 Figure 18.1 Figure 18.2 Figure 18.3 Figure 18.4 Figure 18.5 Figure 18.6 Figure 18.7 Figure 18.8 Figure 18.9 Figure 18.10 Figure 18.11 Figure 18.12 Figure 18.13 Figure 18.14 Figure 18.15 Figure 18.16 Figure 18.17 Figure 18.18 Figure 18.19 Figure 18.20 Figure 18.21 Figure 18.22 Figure 18.23 Figure 18.24 Figure 18.25 Figure 18.26 Figure 18.27 Figure 18.28 Figure 18.29 Figure 20.1 Figure 20.2 Figure 20.3 Figure 20.4 Figure 20.5 Figure 20.6 Figure 20.7 Figure 20.8 Figure 20.9
Comparison of Remnant Resource Grade for Auger Drilling, Grade Control and Mill Stacking Data..................................................................................................................................146 Kamoeb South 525 kt/a Optimisation Shell.................................................................................159 Kamoeb North 525 kt/a Optimisation Shell .................................................................................160 Kamoeb South Pit Design Plan view........................................................................................162 Kamoeb North Pit Design Plan view ........................................................................................162 Kamoeb Ore Production Profile...................................................................................................166 Kamoeb Yearly Mining Profile .....................................................................................................166 Hassai Acidic SBR Stockpile and Heap Leach Tailings Yearly Reclamation Schedule ...............175 Hassai South 5 Mt/a Optimisation Shell ......................................................................................184 Hadal Awatib 5 Mt/a Optimisation Shell ......................................................................................184 Hassai South Stoping Concept ...................................................................................................187 Hassai South Decline Portal Location .........................................................................................188 Hassai South Development Long Section ..................................................................................189 Hadal Awatib Pit Design 5 Mt/a ...................................................................................................190 Hassai South Oxide Waste Dump Location ................................................................................191 Hadal Awatib Conceptual Waste Dump Location .......................................................................192 Hassai South Underground Stoping Schedule ...........................................................................196 Hadal Awatib 5 Mt/a Ore Profile ..................................................................................................198 Hadal Awatib 5 Mt/a Mining Profile..............................................................................................198 Bench Face Mapping......................................................................................................................206 Hassai South Underground Deposit Development ........................................................................213 Hassai South Open Stope Stability Chart Design Guidelines........................................................214 Tailings Storage Facility Site Location Option ................................................................................231 Schematic of the Upstream Construction Method .........................................................................235 Metal Production Profile..................................................................................................................258 Metal Production Profile Heap Leach Operations 2010-2013 ....................................................263 Metal Production Profile CIL Phase, 2013-2018 .........................................................................265 Metal Production Profile VMS Phase, 2015-2025 ......................................................................267 Metal Production Profile Combined CIL and VMS Concentrator Phases ..................................270 Hassai Mine Envisaged Business Plan - Summary Project Schedule ..........................................272 Annual Mining Tonnages (Ore and Waste)....................................................................................277 Average Head Grade, Mine and Plant ...........................................................................................278 Annual Gold Production (kg) ..........................................................................................................278 Diagrammatic Representation of AMCs Mining Flow Sheet .........................................................280 Illustration of In Situ Grade Control.................................................................................................282 AMC Gold Plant: Crushing/Milling Section Flow Sheet .................................................................286 AMC Gold Plant: Leaching Section Flow Sheet.............................................................................287 Water Sources 2009 .......................................................................................................................290 Sensitivity Analysis Current Hassai Operation ............................................................................292
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1. 1.1
SUMMARY BACKGROUND
La Mancha Resources Inc. (La Mancha) owns a 40% interest in the Ariab Mining Company (AMC) through its purchase of 100% of Cominor in October 2006. AMC conducts an open-pit, heap leach gold operation in the Red Sea State of northeastern Sudan. Production commenced in 1991, with a total of over 2.2 million ounces (Moz) produced to date from multiple deposits. However, gold production has declined in recent years in line with falling head grades and poorer recoveries. 1.2 BUSINESS PLAN
La Mancha has reviewed the remaining gold resources and other assets including copper-bearing volcanogenic massive sulphides (VMS) lying beneath some of the open pits and has developed a preliminary two-phase business plan, referred to as the VMS Project, to revitalise operations, based on: A new 3 million tonnes per annum (Mt/a) CIL gold plant to treat: Heap leach residues with an average grade of 1.62 g/t Au, at a rate of up to 2 Mt/a Remaining in situ oxidised gold ore, primarily from the Kamoeb deposit, and other stockpiled material, at a throughput of 1 Mt/a and an average grade of 3.06 g/t.
A new 5 Mt/a copper concentrator to process supergene and fresh VMS mineralisation, initially from the Hadal Awatib and Hassai South deposits. RESOURCES AND RESERVES Gold Resources and Reserves Gold Resources, 31 December 2009
1.3 1.3.1 1.3.1.1
Officially reported Measured, Indicated and Inferred gold Mineral Resources at 31 December 2009 are as shown in Table 1.1. These resources include: Silica-Barite rock (SBR1) and Quartz mineralisation in nine existing areas, namely: Hadal Awatib (Link, North, Pipe and Junction) Hassai (North) Kamoeb (North, South, East and West) Shulai Onur Abderahman Megzoub Tagoteb Umashar
Gold mineralised stockpiles Heap leach tailings which were drilled during 2007, 2008 and 2009.
Weathering product of VMS mineralisation with enriched gold values.
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Table 1.1 Gold Mineral Resources Summary (31 December 2009) Category Measured Indicated Type Heap leach tailings Heap leach tailings Gold ore stockpiles Oxide ore, SBR (in situ) Oxide ore, quartz (in situ) Total M+I Inferred Heap leach Tailings Oxide Ore, SBR (in situ) Oxide Ore, Quartz (in situ) Total Inf. Notes: Mineral Resources estimated and classified according to CIMM categories by Remi Bosc, QP. Assay methods and cut-off grades as shown in table. 4 467 3.02 432 752 2 582 2.68 223 000 706 5.79 131 500 12 964 1 178 3.23 2.11 1 347 725 78 252 No cut-off Bulk deposit 1 g/t (HadalAwatib East) 1.5 g/t (Others) 0.8 g/t Cyanide soluble gold (Hassai) Cyanide soluble gold (Hassai) Fire Assay (Intertek) Fire Assay (Intertek) 3 823 3.82 469 500 1 577 6.26 317 700 886 5.24 149 250 2 846 1.97 180 200 Tonnes (kt) 3 832 Gold (g/t) 1.88 Ounces (oz) 231 075 Cut-off Grade (Au g/t) No cut-off Bulk deposit No cut-off Bulk deposit No cut-off Bulk deposit 1 g/t (HadalAwatib East) 1.5 g/t (Others) 0.8 g/t Cyanide soluble gold (Hassai) Cyanide soluble gold (Hassai) Cyanide soluble gold (Hassai) Fire Assay (Intertek) Fire Assay (Intertek) Assay Type Fire Assay (Intertek)
1.3.1.2
Gold Reserves, 31 December 2009
Mineral Reserves as of the end of 2009 are reported to be 2.56 Mt at 4.99 g/t Au (Table 1.2), and are a sub-set of Mineral Resources.
Table 1.2 Mineral Reserves Summary (31 December 2009) As at 31 December 2009 Traditional Ore Proven Reserves Probable Reserves Subtotal Acidic Ore Proven Reserves Probable Reserves Subtotal 664 000 664 000 5.92 5.92 126 400 126 400 1 893 000 1 893 000 4.67 4.67 284 000 284 000 Tonnes g/t Au Ounces Cu (%) Cu (t)
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Table 1.2 Mineral Reserves Summary (31 December 2009) As at 31 December 2009 Total Proven Reserves Probable Reserves Notes: Mineral Reserves estimated and classified according to CIMM code under supervision of Bill Plyley, QP. Cut-off grade variable according to material type and location, but typically 1.9 g/t for in situ mineralisation. Gold metal price assumption $750/oz. 2 557 000 4.99 410 400 Tonnes g/t Au Ounces Cu (%) Cu (t)
1.3.1.3
Additional Gold Resources, Post-2009
Additional Inferred resources have recently been estimated by CSA Global (CSA) to support the CIL expansion phase, comprising material currently undergoing heap leaching, as shown in Table 1.3.
Table 1.3 Additional Gold Mineral Resources in Heap Leach Tailings Under Irrigation Category Indicated Inferred Notes: Based on cyanide soluble gold assays, using a material balance accounting approach. Mineral Resources estimated and classified according to CIMM categories by S. McCracken, QP. No cut-off grade applied, ie bulk deposit, all in situ material reported. Tonnes (kt) 514 1 329 Gold CN Soluble (g/t) 0.91 1.42 Ounces (oz) 14 600 58 800
Further material which will be stacked and processed by heap leaching prior to commencement of CIL operations is included as existing stockpiles or as in situ resources within Table 1.1. 1.3.2 VMS Resources
Generally wide-spaced drilling at Hadal Awatib and Hassai South has allowed estimation of Indicated and Inferred VMS resources as shown in Table 1.4.
Table 1.4 VMS Mineral Resources, 31 December 2009 Category Indicated Area/Type HA East, Cu>2% HA East, Cu<2% HS South, Supergene HS South, Primary Total Indicated Tonnes (kt) 508 2 390 2 898 0.93 1.27 86 700 36 800 Gold (g/t) 0.78 0.96 Copper (%) 2.80 0.95 Gold (oz) 12 000 74 000 Copper (t) 14 200 22 600
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Table 1.4 VMS Mineral Resources, 31 December 2009 Category Inferred Area/Type HA East, Cu >2% HA East, Cu<2% HS South, Supergene HS South, Primary Total Inferred Notes: HA = Hadal Awatib, HS = Hassai South. Mineral Resources estimated and classified according to CIMM categories by R Bosc, QP. Grades based on fire assay for gold, and triple acid digest/AAS finish for base metals; at Intertek, Jakarta. Cut-off grade 0.8% copper equivalent (Cueq), where Cueq = Cu(%) + 0.63xAu(g/t). The above relationship uses metal prices of $750/oz gold and $2.00/lb copper, and takes account of metallurgical recoveries. Tonnes (kt) 2 930 25 400 1 530 18 620 48 480 Gold (g/t) 0.75 1.23 2.29 1.49 1.33 Copper (%) 2.50 0.81 2.75 1.37 1.19 Gold (oz) 71 000 1 001 000 112 000 894 000 2 078 000 Copper (t) 73 000 206 000 42 000 255 000 576 000
Drilling and mining has located VMS-style base metal mineralisation at 10 other deposits, indicating significant potential to expand the resource base, but insufficient drilling has been undertaken to define further resources at this stage. At this stage, insufficient metallurgical testwork and engineering studies have been undertaken to determine any VMS Mineral Reserves. 1.4 USE OF INFERRED RESOURCES IN BUSINESS PLAN
The VMS Project as defined in the Business Plan is based partly on Inferred Mineral Resources which are defined under NI 43-101 as that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. Inferred Mineral Resources must be excluded from estimates forming the basis of feasibility or other economic studies.
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Under National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), a company subject to NI 43-101 is not permitted to report results of an economic analysis that includes Inferred Mineral Resources, once the project has advanced past a preliminary feasibility stage. However, La Mancha applied to the British Columbia, Alberta, and Ontario Securities Commissions for exemption from this limitation for the VMS Project, and such exemption has been granted subject to: Submission of a Technical Report that: Summarises scientific and technical information concerning exploration, development and production activities on the Ariab Gold property Addresses the impact of the development of the VMS Project on the existing Ariab Gold Project.
Complies with relevant provisions of NI 43-101 regarding the speculative nature of a Preliminary Assessment based on Inferred Mineral Resources which prohibits their categorisation as Mineral Reserves. A statement that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability is to be included in the Technical Report. MINING
1.5
As part of the VMS Project, mining studies for each of the two phases have been undertaken into: Open pit mining of oxidised gold ore at Kamoeb and elsewhere, essentially continuing current mining practices Retrieval of stockpiled material Reclaim of heap leached material for reprocessing Open pit mining of VMS mineralisation beneath the existing pit at Hadal Awatib, assuming 120 t excavators and 90 t trucks, in line with current practices Underground mining by contractor at Hassai South by sub-level open stoping (SLOS), with paste backfill to overcome problematic hanging wall conditions. Kamoeb Open Pit
1.5.1
Pit optimisations were undertaken on the Kamoeb South and Kamoeb North deposits, and mine designs completed. Table 1.5 contains design parameters for the Kamoeb open pits, while pit designs for Kamoeb South and Kamoeb North are shown in Figure 1.1 and Figure 1.2.
Table 1.5 Pit Design Parameters Batter Angle (deg) 63 Bench Height (m) 10 Berm Width (m) 5 Ramp Grade (1 : x) 10 Ramp Width (m) 15, 22
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Figure 1.1 Kamoeb South Pit Design Plan View
Figure 1.2 Kamoeb North Pit Design Plan View
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1.5.2
Heap Leach Tailings and Stockpile Reclaim
Heap leach tailings will be reclaimed at a rate of up to 2.0 Mt/a, while acidic SBR stockpiles will be reclaimed as required, ensuring that the fresh ore plant throughput of 1 Mt/a will be maintained for as long as possible. The existing heap leach tailings will be reclaimed by bulldozer and front end loader (FEL) into a mobile feeder system. This in turn transfers the reclaimed material to an overland conveyor, which has been assumed to be 2500 m in length. The overland conveyor feeds a storage bin at the milling area. Acidic SBR stockpile material will be reclaimed by bulldozer and FEL into trucks and transported to the ROM bin at the crusher plant. 1.5.3 Hadal Awatib Open Pit
Limited geotechnical data is available directly for the VMS deposits, but a site visit and review of structures and rock conditions in and around the existing open pits by a geotechnical specialist has provided a basis for the design assumptions adopted for open pit and underground mining of the VMS deposits. Pit optimisation was undertaken, and preliminary mine design completed. Table 1.6 contains design parameters for the Hadal Awatib open pit. The design includes a ramp, 22 m wide with a grade of 1:10.
Table 1.6 Hadal Awatib Open Pit Design Parameters Sector Weathered zone North wall South wall Max. Interramp Angle 46
o
Bench Face Angle
Bench Height (m) 10
49o 47
o
65o 75
o
10 10
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The pit design is shown in Figure 1.3.

Figure 1.3 Hadal Awatib Pit Design 5 Mt/a
1.5.4
Hassai South Underground Mine Design
For the Hassai South underground mine it has been proposed that open stopes in the primary ore zone should have unsupported maximum dimensions of 35 m high (based on a 30 m sub-level spacing) by 30 m along strike and 17 m transverse width (stopes supported with Garford bulge cables in the back could be mined up to 40 m transverse width). It is recommended that these stopes are mined in a primary-secondary sequence, and bottom up, using rapid cycle times and paste backfill. For stopes in the supergene zone immediately below the pits, it is proposed that unsupported maximum stope dimensions should be 25 m high (based on a 20 m sub-level spacing) by 20 m along strike and 17 m transverse width. Additionally, 10 m rib pillars have been proposed every 40 m to provide global stability to the south pit wall (in which the access ramp is contained) during mining. A temporary crown pillar of 20 m to 30 m below the supergene zone has been recommended. Access is by decline with a portal in the lower part of the pit on the hanging wall side. Dual decline and level development requirements are designed to allow multiple stoping fronts on each level. Link drives have been included to simplify traffic flow between the west and the east sides of the mine. An additional fresh air intake has been included at the top of the East incline, which would be used as the second means of egress via an installed ladder way.
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Figure 1.4 is a long section outlining the underground development concept.

Figure 1.4 Hassai South Development Long Section
1.5.5
Production Schedules
Production schedules have been determined for both the CIL and Concentrator plants, mining fleet requirements determined and capital and operating costs estimated. It has been assumed that mining at Kamoeb and reclaim of existing heaps is undertaken using existing equipment, whereas new equipment is assumed for open pit mining at Hadal Awatib. Underground mining will be undertaken by a contractor. 1.5.5.1 CIL Plant Feed
The 3 Mt/a CIL Plant is fed by a combination of Kamoeb South and Kamoeb North open pit, stockpiled acidic SBR ore and ore from heap leach tailings. Table 1.7 summarises the mining schedule for Kamoeb. Figure 1.5 shows the total material movement schedule for Kamoeb. Table 1.8 displays the heap leach and stockpile reclaim schedule. Figure 1.6 shows the stockpiled ore and heap leach tailings reclaim movements. Note that for the financial model, La Mancha has added an additional 372 088 t at 4.29 g/t Au spread over Years 4, 5 and 6 to bring the scheduled tonnages up to 3.0 Mt/a. This material has been identified overlying VMS mineralisation in the Hadal Awatib pit design.
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Table 1.7 Kamoeb Yearly Mining Schedule Year Pit Total Ore Input to Mill (t) 1 2 3 4 5 6 7 Total Note: Year 1 is 2010. Figure 1.5 Kamoeb Yearly Mining Profile KamS KamS KamS KamS KamS/KamN KamS/KamN KamN 370 193 531 437 537 740 533 077 1 001 688 757 244 420 691 4 152 071 Grade Input to Mill (g/t) 4.08 3.65 3.52 3.38 2.64 2.59 2.23 3.06 2 967 068 3 261 278 3 299 665 3 671 049 6 918 657 4 969 725 1 549 574 26 637 016 8.01 6.14 6.14 6.89 6.91 6.56 3.68 6.42 3 337 261 3 792 715 3 837 405 4 204 126 7 920 346 5 726 970 1 970 265 30 789 087 Total Waste Mined (t) Strip Ratio Total Rock Mined (t) Total Ounces Output from Mill (oz) 48 609 62 423 60 897 57 898 84 973 63 006 30 158 407 965
Table 1.8 Mining Schedule for Heap Leach and Stockpile Reclaim Acidic SBR Year 1 2 3 4 5 6 7 8 9 Acidic SBR non-wash/HL Tailings Acidic SBR non-wash/HL Tailings HL Tailings HL Tailings HL Tailings HL Tailings Total 659 438 5.94 88% 466 923 71 529 6.00 6.00 92 92 2 000 000 1 857 962 2 126 744 2 392 053 3 000 000 871 489 12 248 248 1.62 1.62 1.62 1.62 1.62 1.62 1.62 70 70 70 70 70 70 65 2 466 923 1 929 491 2 126 744 2 392 053 3 000 000 871 489 12 907 686 2.45 1.78 1.62 1.62 1.62 1.62 1.78 80 73 70 70 70 70 73 155 658 80 317 77 406 87 062 109 189 31 719 556 817 Area Acidic SBR washable Tonnes (t) 120 986 Grade (g/t) 5.68 Metal. Recovery (%) 70 Heap Leach Tailings Tonnes (t) Grade (g/t) Metal. Recovery (%) Tonnes (t) 120 986 Total Grade (g/t) 5.68 Metal. Recovery (%) 70 Gold Production (oz) 15 466
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Figure 1.6 Hassai Acidic SBR Stockpile and Heap Leach Tailings Yearly Reclamation Schedule Graph
The material included in the schedule includes some Inferred Resources and does not constitute a Mineral Reserve. It is referred to as a Mining Inventory and is made up as summarised in Table 1.9. The Mining Inventory includes ore that is included in current in situ reserves that will be mined and leached prior to 2013, with residual gold content estimated based on previous leaching recoveries.
Table 1.9 Mining Inventory for CIL Operation Ore Type Traditional ore* Heap leach residue Acidic ore Total Mining Inventory Tonnage (kt) 3 085 12 248 538 15 871 Gold (g/t) 2.90 1.62 6.00 2.02 Gold (oz) 287 386 636 830 103 926 1 028 142
Traditional Ore* = SBR and Quartz mineralisation of the type previously heap leached, including 372 kt grading 4.29 g/t Au identified above VMS mineralisation in the proposed Hadal Awatib VMS pit..
1.5.5.2
VMS Plant Feed
The 5 Mt/a VMS concentrator is fed by a combination of underground and open pit ore as shown in Figure 1.7 and Figure 1.8 respectively. Figure 1.9 shows the total material movement schedule for Hadal Awatib. Again, Inferred Resources are included for this preliminary economic evaluation, and insufficient studies have been completed to confirm mining and processing parameters. Consequently, the schedule is based on a Mining Inventory which totals 29.36 Mt from the two sources.
Figure 1.7 Hassai South Underground Stoping Schedule (Ore)

2,000 1,800 1,600 1,400 1,200
Tonnes(kt)
1,000 800 600 400 200 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14
Period Primary Supergene
Figure 1.8 Hadal Awatib 5 Mt/a Ore Mining Profile

4,000 3,500 3,000 2,500
Tonnes(kt)
2,000 1,500 1,000 500 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Period Primary Supergene
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Figure 1.9 Hadal Awatib 5 Mt/a Mining Profile

30,000
25,000
20,000
Tonnes(kt)
15,000
10,000
5,000
0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Period Waste Oxide Primary Supergene
1.5.6
Mine Capital Cost
Total mine capital cost of $151 M (Table 1.10) includes the purchase of a new mining fleet for Hadal Awatib, together with pre-production costs associated with the development of the Hassai South underground mine. Replacement capital costs have been included for mining at Kamoeb for a portion of the aging mining fleet. No capital costs were included for the heap leach tailings and stockpile reclaim operations which will use existing equipment.
Table 1.10 Mine Capital Cost Estimate Area Kamoeb Open Pit Hadal Awatib Open Pit Items Equipment Sub-total Equipment Infrastructure Sub-total Hasai South Underground Infrastructure Development Material movement Sub-total Total Mine Capital Cost Note: paste plant. Cost Estimate ($M) 8.8 8.8 79.6 5.0 84.6 31.2 23.8 2.6 57.6 151.0
Underground infrastructure includes preliminary works, surface works, portal development, ventilation and the
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1.5.7
Mine Operating Cost
It is assumed that open pit mining at Kamoeb and Hadal Awatib, and heap leach and stockpile reclaiming all will be undertaken as per current operations, ie utilising a local workforce. However, underground mining will be undertaken by a qualified mining contractor. Costs vary by location and change over time. Details are provided in Section 18, and average costs are summarised in Table 1.11. Open pit costs have been derived from historical AMC data, plus input from AMEC Minprocs internal database, and include transport to the plant. Underground mining costs have been derived from AMEC Minprocs internal database, and include costs associated with continuing underground development, backfill, mine services and management of operations.
Table 1.11 Mine Operating Cost Estimate Ore Source Heap leach reclaim Kamoeb open pit Hadal Awatib open pit Hassai South underground Average Cost Estimate ($/t ore) 1.14 19.87 14.14 26.17
1.6 1.6.1 1.6.1.1
PROCESSING CIL Plant Metallurgical Testwork
A limited metallurgical testwork program was undertaken by Amdel Mineral Laboratories, Perth, on samples of Kamoeb (Quartz) ore and heap leach residue. This work included sample preparation, head sample chemical analysis, mineralogy, gravity separation, grind sensitivity, oxygen/air sparging and cyanidation leach testing. The testwork findings can be summarised as follows: The Quartz ore is abrasive and exhibits strong compressive strength, with soft SAG milling characteristics and a medium ball milling work index Heap leach material exhibits a soft to medium ball mill work index Head assaying indicated average gold grades of 4.29 g/t and 2.15 g/t for the Quartz ore and heap leach residue samples, respectively Significant levels of mercury were detected in both samples which will require monitoring in future testing, and may require addition of a mercury scrubber to the processing flow heet The Quartz ore gave reasonable gravity response at 24% recovery, while heap leach material gave a poor response, achieving only 4% recovery to concentrate Quartz ore appears to be insensitive to grind size below 80% passing 150 microns (P80 150 m), whereas the heap leach material shows improving recovery with grind; NPV analysis shows that with the heap leach material in isolation, the best NPV was achieved at the finest grind tested of P80 53 m. Grinding finer than P80 53 m may present further increases in NPV
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Both ore types were found to be insensitive to the use of oxygen sparing over air sparging within the leach, with similar recoveries being obtained Similarly, cyanide concentration did not appear to influence recovery over the range tested between 250 ppm to 1000 ppm NaCN Neither pre-aeration nor lead nitrate addition improved the leach performance of the heap leach material.
Anticipated recovery in an agitated leach circuit is expected to be 93.0% for the Quartz ores and 65.8% for the heap leach material, with preliminary NaCN consumptions of 1.45 kg/t and 1.38 kg/t respectively. 1.6.1.2 Anticipated CIL Production Plant Recoveries and Reagent Consumptions
La Mancha has reviewed the testwork results and developed anticipated recoveries for different components of the proposed CIL Mining Inventory. This approach distinguishes between: Quartz ore: 93% recovery based on preliminary testwork SBR material: 95% recovery, based on production experience and tails grades from CIL teswork Acidic SBR material:: 92% recovery, based on experience Heap leach residue: 65% of fire assay gold, or 88% of cyanide soluble gold.
Overall average recoveries are estimated to be 70% of head grade as shown in Section 16.2.4. The annual gold production profile used in the economic analysis was developed by La Mancha, by assigning recoveries for particular mill feed types to the annual mining schedule provided by CSA. CIL plant Lime and cyanide consumptions for heap leach residue are estimated to be 0.9 kg/t and 1.38 kg/t, based on testwork. These consumptions are expected to rise to 10.0 kg/t and 2.5 kg/t for Acidic SBR material, based on previous heap leach experience. 1.6.1.3 CIL Process Plant
The 3.0 Mt/a plant feed grade is based on 2.0 Mt/a of heap leach tailings and 1.0 Mt/a of fresh ore, which gives a calculated average grade of 2.01 g/t Au. The proposed circuit includes: Crushing: a new primary crushing circuit consisting of a coarse ore bin, feeder, jaw crusher, conveyor and crushed ore bin. The current circuit will be made redundant. Reclamation of the existing spent heap leach residue by bulldozer or FEL into a mobile feeder system. The residue will be transferred to a 2500 m overland conveyor, which will feed a storage bin located adjacent to the milling area. A SABC grinding circuit consisting of an open circuit SAG mill operating with a scats crusher, followed by a single overflow ball mill operating in closed circuit with a set of hydrocyclones. The SAG mill will process fresh ore at 1.0 Mt/a while the ball mill will receive an additional 2.0 Mt/a of heap leach residue feed. The target design cyclone overflow sizing will be P80 75 m.
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A gravity recovery circuit consisting of a centrifugal concentrator and an intensive leach reactor. A leaching and adsorption circuit with a combined residence time of 24 hours. The leach circuit will consist of two leach tanks followed by six carbon adsorption tanks operating in series with an average tank sizing of 1881 m. Design leach feed density will be 44.3% weight for weight (w/w) solids. A split_AARL elution circuit utilising a combined acid wash and elution column. Elution batch size will be 11 t of carbon. Gold recovered from the elution process will be electrowon in two stainless steel electrowinning sludging cells operating in parallel. Cyanide detoxification (detox) based on the SO2/Air process for the destruction of excess cyanide in the tailings slurry. Total residence time of the circuit is 90 minutes. Tailings thickening to recover water from the tailings stream, to minimise tailings pumping demands and to minimise site water losses due to evaporation. The design thickener diameter is 25.0 m. A square, unlined, paddock style tailings storage facility (TSF) utilising a perimeter spigoting system, with a central decant tower for excess water recovery and recycle back to the processing plant. A rise rate of 2.0 m/a is assumed in the preliminary design requiring the TSF dimensions to be 1035x1035 m.
Plant operating costs are based upon La Mancha supplied processing schedule, feed grades, circuit recoveries and gold production quantities and are estimated at $12.80/t, or $250.71/oz Au. 1.6.2 1.6.2.1 VMS Concentrator Metallurgical Testwork
A limited metallurgical testwork program was undertaken by SGS Canada Inc. (SGS), using two ore composites. This work included sample preparation, head sample chemical analysis, mineralogical analysis, flotation testing, cyanidation leach testing and product characterisation testwork. Testwork to date has not included any comminution, thickening, or filtration work. Equipment sizing in these areas is, therefore, based on assumed parameters and AMECs experience from other projects. Testwork was performed on two composites, one each from the supergene and primary zone of the Hassai South deposit. No samples were collected from Hadal Awatib, and the grades of the composites were appreciably higher than the expected average grade of these ore types. Head assays and QEMSCAN mineralogical characterisation was undertaken, showing pyrite (55%) and chalcopyrite (23%) are the predominant sulphide minerals in both composites. The majority (>70%) of the chalcopyrite was liberated at P80 100 m, but fine grinding would be required to liberate 18-25% of chalcopyrite that occurred as composites with pyrite. A total of 13 rougher kinetics and batch cleaner flotation tests were performed on Composite 1 and Composite 3. In addition, a locked cycle test was performed on each of the composites.
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The main conclusions from the testwork were: Composite 1 Enriched Zone Batch Testing Batch testing with three cleaning stages recovered 76% of the copper to a 32.5% Cu concentrate In the same concentrate, 65% of the gold was recovered Pyrite scavenger flotation was able to recover 92% of the gold in the rougher tail but with 72% of the rougher tail mass going to concentrate. Gravity concentration was able to produce a high grade gold concentrate (713 g/t) but at only 2.3% recovery of gold in feed Rougher flotation was able to recover more than 97% of the copper and more than 82% of the gold. Locked cycle testing recovered 87% of the copper to a concentrate grading 30% Cu Gold recovery to the same concentrate was 73% Pyrite scavenger flotation was able to recover 90% of the gold in the rougher tail, but with the majority (70%) of the rougher tail mass going to concentrate Rougher flotation was able to recover 93% of the copper and 84% of the gold.
Locked Cycle Testing
Composite 3 Primary Zone Batch Testing Batch testing with three cleaning stages recovered 80% of the copper to a 30% Cu concentrate (and 85% of the copper to a 19% Cu concentrate) In the same concentrates, respectively, only 30 and 37% of the gold was recovered Pyrite scavenger flotation was able to recover 96% of the gold in the rougher tail but with 87% of the rougher tail mass going to concentrate. Gravity concentration was able to produce a moderate grade gold concentrate (35 g/t) but at only 1.5% recovery of gold in feed Rougher flotation was able to recover more than 93% of the copper and about 60% of the gold. Locked cycle testing recovered 85% of the copper to a concentrate grading 25% Cu. Gold recovery to the same concentrate was only 38% Pyrite scavenger flotation was able to recover 95% of the gold in the rougher tail but with the majority (88%) of the rougher tail mass going to concentrate Rougher flotation was able to recover 88% of the copper but only 45% of the Au.
Locked Cycle Testing
The primary grind in each case was to a P80 of 69 m. The secondary grind took the concentrate down to 29 m. The flotation reagents are simple with a xanthate collector, a common frother and lime as a pH modifier to adjust the rougher and cleaners to alkaline flotation conditions.
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Enriched zone ore is easier to float than primary ore. Primary ore has especially low gold recovery with much of the value remaining in the non-floated pyrite. Cyanide leach testwork on concentrator tailings indicated low recoveries and high cyanide consumptions, and this option has not been pursued further at this stage. Interpretation of the testwork results suggests the concentrate grade and recovery parameters as follows: Hassai South Supergene: 7% mass recovery to concentrate grading 32% Cu and 22 g/t Au, with recoveries of 81% and 67% for Cu and Au, respectively Hassai South Primary: 4.9% mass recovery to concentrate grading 5.5% Cu and 11 g/t Au, with recoveries of 90% and 56% for Cu and Au, respectively Hassai South Supergene: 3.4% mass recovery to concentrate grading 25.1% Cu and 10 g/t Au, with recoveries of 85% and 29% for Cu and Au, respectively. Process Plant
1.6.2.2
The VMS process flow sheet is preliminary due to the limited amount of testwork completed to-date. It comprises: Comminution Circuit Ore is delivered by mine haul truck to a ROM ore pad. Crushing: ore is loaded into the ROM bin by FEL, is withdrawn from the ROM bin by vibrating grizzly feeder and passes to the primary jaw crusher. The undersize from the vibrating grizzly and the primary crusher discharges onto the mill feed conveyor. A weightometer and a tramp magnet are mounted over the head pulley. Grinding and classification: the grinding circuit consists of an open circuit 5.2 MW SAG mill, followed by a ball mill in closed circuit with two clusters of 400 mm hydrocyclones. The SAG mill trommel oversize falls into a bunker for removal by loader or bobcat. Cyclone overflow flows by gravity to a static trash screen prior to reporting to the rougher flotation circuit, while the cyclone underflow stream is returned to the ball mill. The ball mill is 7.3 m diameter inside shell, with an EGL of 10.2 m. It is powered by twin 4.5 MW motors, for a total power of 9.0 MW. The ball mill discharge flows through a trommel. Undersize from the trommel cascades into the common mill discharge hopper. Rougher Flotation and Regrind Rougher flotation is nominally carried out at P80 69 m. The rougher circuit is in open circuit, with rougher tailings reporting to the tailings thickener. The rougher stage of flotation consists of two trains of 6 x 100 m3 forced air tank cells. The installed residence time for the rougher flotation cells is 40 minutes. Flotation is undertaken at elevated pH of 10.5. Aerofloat 238 is added as collector and methyl iso-butyl carbinol (MIBC) as frother. Rougher concentrate gravitates to a concentrate hopper, and is pumped to the regrind circuit. Flotation tailings are passed to the tails thickener feed tank.
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The regrind circuit consists of two ISAmill M1000s, with 500 kW motor units, operating in open circuit. The regrind circuit is designed to produce a regrind target of P80 30 m. The feed to the regrind mill is deslimed with a 150 mm hydrocyclone cluster. The regrind rougher concentrate is transferred to the cleaner flotation circuit. Reground rougher concentrate is treated in three stages of closed-circuit cleaning. The concentrate is combined with the second cleaner tailings and cleaner scavenger concentrate in the first cleaner cell feed box to form first cleaner feed. First cleaner flotation is carried out in six tank cells with a nominal residence time of 20 minutes total. The first cleaner concentrate is pumped to the second cleaner feed where final concentrate is produced. The first cleaner tailings gravitate to the cleaner scavenger bank, from which the non-floating component is transferred to final tails. The second cleaner stage and the cleaner scavenger stage each have a nominal residence time of 15 minutes. The second cleaner consists of four tank flotation cells, while the cleaner scavenger bank consists of three tank flotation cells. Final cleaner concentrate is stored in an agitated tank to promote de-aeration, prior to pumping to the concentrate thickener. Final cleaner concentrate passes over a trash screen to the concentrate thickener. Thickener overflow is pumped to the process water tank. Thickener underflow (65% w/w solids) is pumped to the concentrate storage tanks. Two concentrate storage tanks have been provided with a live capacity of 1000 m3 each, allowing a total storage capacity of 48 h. Filter feed pumps feed two pressure filters. Dry cake (10% moisture) is dumped from the bottom of each filter to a conveyor belt that discharges into a storage bunker. The filtrate gravitates to an air/water separator in which the filtrate is de-aerated prior to being pumped back to the concentrate thickener. Concentrate is packed in 2 t bulk bags, and trucked to Port Sudan. Concentrate storage capacity at site and port are approximately 15 and 30 days respectively. Average concentrate production rates vary according to feed, as shown in Table 1.12.
Table 1.12 Average Concentrate Production
Cleaner Flotation
Concentrate Thickening, Filtration and Handling
Ore Type Hassai South Supergene Hassai South Primary Hadal Awatib
t/d at 10% Moisture 1065.0 745.6 513.0
1.7 1.7.1
INFRASTRUCTURE Power
Power for the existing operation (5.5 MW) is provided by diesel generator, but there is insufficient capacity to support the plant expansions. Site power requirements are estimated to be 10.3 MW and
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19.5 MW for the CIL plant and concentrator respectively, ie a total of 29.82 MW. It is proposed to construct a 77 km long, high tension (HT) power line to link with the national grid supply, as part of the CIL plant development. 1.7.2 Water
The project currently is supplied from groundwater bores, but demand will increase very significantly once the new plants are installed. It is proposed to construct a water pipeline to bring water from the River Nile; this would be constructed as part of the CIL project, but with sufficient capacity to supply the 5 Mt/a concentrator once it comes on line. It is estimated that six pump stations will be required along the line. Preliminary discussions have commenced regarding acquisition of water permits, without raising any issues. 1.7.3 Accommodation
The existing accommodation camp would require a significant upgrade to bring it up to acceptable standard, and allowance has been made in the capital costs for a new camp to be constructed. 1.7.4 Access and Port
Existing roads linking the site to Port Sudan are considered adequate to support the expanded operations, including transport of concentrates and reagents. Port Sudan has adequate facilities for exporting concentrates and importing reagents and consumables for the expanded operation. AMC has a 4500 m2 fenced yard at Port Sudan, and it is anticipated that a 1800 m2 concentrate storage shed will be erected there to house VMS concentrate bags prior to container loading and shipping to customers. 1.8 ENVIRONMENTAL
AMEC Earth and Environmental conducted a high-level environmental review to identify any serious issues and/or opportunities related to current operations and the proposed expansions. A number of areas were identified that require attention in order to improve monitoring, reporting and response systems. However, no major issues were identified that are likely to significantly impact on development of the expansion projects. 1.9 1.9.1 CAPITAL COSTS General
Capital costs for the CIL plant phase have been estimated by CSA (mine) and Sedgman (plant and infrastructure). Capital costs for the concentrator phase, including development of VMS mining areas, have been estimated by AMEC. Costs are expressed in United States dollars as of first or second quarter 2010: accuracy is 35-40%.
Note: An additional 7.2 MW is required to operate the water pipeline, but this will be supplied by local diesel generator
sets.
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1.9.2
CIL Plant Development
The estimated capital cost for the 3.0 Mt/a CIL plant and related infrastructure is $184.4 M. Additional capital expenditure of $8.83 M is required for upgrading a portion of the current, aging mining fleet. The following infrastructure items contribute significantly to these capital costs: Overhead powerline Nile water pipeline Overland conveyor New 200 man camp $25.4 M $39.6 M $10.0 M $4.0 M
1.9.3
VMS Concentrator Development
The capital cost estimate for the VMS concentrator phase includes mining and certain necessary infrastructure items, but excludes joint infrastructure, such as the power line and water pipeline, that have been costed as part of the CIL plant phase. Total capital costs for the concentrator phase are estimated to be $319.43 M, as summarised in Table 1.13.
Table 1.13 Capital Cost Estimate, 5 Mt/a VMS Concentrator Phase Capital Cost ($M) 71.66 44.74 78.19 38.83 12.90 0.50 11.42 38.39 22.79 319.42
Area Open pit mine Underground mine Process plant Infrastructure Area infrastructure Regional infrastructure Miscellaneous Indirect costs Accuracy Provision Total Initial Capital Cost
1.10 1.10.1
OPERATING COSTS General
As for capital costs, operating costs are expressed in United States dollars, of second quarter 2010. CIL-phase operating costs were estimated by CSA (mine) and Sedgman (plant and infrastructure), while AMEC estimated costs for the VMS Concentrator phase. G&A costs were provided by AMC based on current operating mine experience.
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1.10.2
CIL Plant
Under this scenario, Kamoeb life of mine (LOM) mining operating costs are estimated at $83.3 M, equivalent to $2.87/t moved or $20.07/t of ore treated. An additional $14.8 M is expended on reclaiming stockpiled ore and heap leach tailings over the life of the plant, at an average cost of $1.15/t. Plant operating costs were based upon the following: The proposed processing plant design; The resulting reagent consumptions from metallurgical testing. The AMC specified processing schedule, feed grades, overall recovery and gold production quantities.
For the LOM, the plant operating costs were estimated at $203.2 M, equivalent to $12.80 /t of ore treated, or $250.71/oz Au recovered. G&A and Other costs have been provided by AMC based on current Hassai site data and are estimated to be $9.2 M/a for the CIL operation. 1.10.3 VMS Concentrator
Underground mining costs for Hassai South have been estimated at $26.17/t ore, including ongoing development costs. Open-pit mining costs at Hadal Awatib are estimated to be $0.47/t of material or $14.14/t ore. Process operating costs for the VMS concentrator, including transport to port, are estimated to be $9.38/t of ore treated or $46.9 M/a, which equates to 39 /lb copper shipped in concentrates. Off-site charges are not included in those operating costs. G&A specific to the VMS operation is estimated by AMC at $9.24 M/a. 1.11 PROJECT SCHEDULE
A high level schedule for the project as proposed by La Mancha is outlined in Figure 1.10, and shows the construction of the 3 Mt/a CIL plant completed by 2013, followed by development of the 5 Mt/a VMS concentrator by 2015.
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Figure 1.10 Hassai Mine Envisaged Business Plan Summary Project Schedule
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Hassai CIP Project

Current Heap Leach Operation CIP PFS/DFS CIP EPCM CIP - Commission and Operate Ariab VMS Project Scoping Study Drilling and Testwork Program Prefeasibility Study Definitive Feasibility Study EPCM Plant - Commission and Operate
It is recommended that construction of the CIL and VMS process plants and associated facilities be executed on an engineering, procurement and construction management (EPCM) basis. Long lead items such as ball mills, crusher, flotation cells and filters would be identified as a matter of priority during the feasibility study (FS) phase of the project, to allow early purchase of these key items. Use of second-hand equipment may provide some schedule and cost reductions. 1.12 FINANCIAL MODELLING
La Mancha has prepared three post-tax financial models for preliminary economic assessment, covering: Base Case: existing heap leach operation treating remaining oxide gold reserves through to the end of 2013. CIL Project, starting in 2013 and treating then-extant oxide gold reserves, stockpiled acidic mineralisation and heap leach tailings resources. VMS project, starting in 2015 treating the identified VMS resources.
Modelling is based on a phased expansion and production profile. Current Heap Leach operations continue to end of 2012. Phase One CIL operates alone from 2013 to end of 2014. Phase two VMS operates in parallel to Phase One from 2015. The gold and gold-equivalent copper production profile is shown in Figure 1.11.
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Figure 1.11 Metal Production Profile for Phased VMS Project

500,000 450,000
VMSCopperasGoldeqv.
400,000 350,000
VMSConcentrate HeapLeachResidue Acidicnonwashableore
GoldProduction,oz
300,000 250,000 200,000 150,000 100,000 50,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Acidicwashableore SBRore Quartzore
2021
2022
2023
2024
2025
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Table 1.14 Financial Highlights for Proposed VMS Project, by Phase Heap Leaching Main Assumptions Gold price Copper price Royalties (%) Corporate tax rate Mineral Reserves Probable Reserves (Mt@g/t) Additional Mineral Resources Measured Resources (Mt@g/t) Indicated Resources (Mt@g/t) Inferred Resources (Mt@g/t Au, Cu%) Total Mining inventory Tonnes, Mt Grades Production: Commissioning Yearly mill run rate, Mtpa Gold recovered, 000 oz Copper recovered, 000 t Metallurgical recovery Yearly production* Mine life, years Financials: Initial capital cost Total sustaining capital Average cash costs Internal rate of return NPV @ 0% discount NPV @ 5% discount Payback** , years Notes: * Costs for years when project is running at design rates. ** Calculated from commencement of production. *** Including gold credits. $185.6 M $4.9 M $ 482/oz Au 30% $195.8 M $149.8 M 1.9 $319.4 M $35.9 M $ 1.24/lb Cu*** 11% $230.9 M $122.7 M 3.9 $505.0 M $40.8 M 17% $447.1 M $238.7 M varies Gold Copper Gold (oz) Copper (t) 2010 - 2013 0.65 299 -73% -74 780 -4 2013 3 811 -79% -155 880 -6 2015 5 378 323 36% 90% 59 355 51 516 10 6+ --1 189 323 ---Gold, g/t Copper, % 2.6 4.88 -15.8 2.01 -29.4 1.11 1.22 45.2 1.43 1.22 3.8 @ 1.9 4.6 @ 2.1 6.8 @ 1.7 29.4 @ 1.1, 1.2 Gold Copper USD 950/oz -7% -15% 2.6 @ 4.88 USD 950/oz -7% -10% 0.6 @ 6.0 USD 950/oz USD 2.19/lb 5% 3.5% 10% Phase 1: CIL Phase 2: VMS Phase 1 & 2
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Key assumptions and financial highlights from the CIL and VMS models are shown in Table 1.14. The assumptions include gold and copper prices of $950/oz and $2.19/lb, respectively, over the life of the project. Total gold and copper production for the two phases is estimated at 1.19 Moz and 0.323 Mt, respectively. Average cash costs are $482/oz gold in the CIL circuit and $1.24/lb copper produced from the concentrator (including off-site costs and gold credits). The CIL project shows an NPV of $149.8 M and an IRR of 30%, while the VMS project shows an NPV of $122.7 M and an IRR of 11%. The VMS Project as defined in the Business Plan is based partly on Inferred Mineral Resources which are defined under NI 43-101 as that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Consequently, the predicted financial outcomes must be treated with a high degree of caution. Sensitivity analysis confirms that both phases of the project are very sensitive to metal prices: an increase of 10% in gold price adds approximately $81 M to NPV, while a similar increase in copper price adds $91.5 M. The CIL and VMS plants each operate at full throughput for only 5 years. The financial outcomes are, therefore, significantly affected by extensions to life of the operation. The potential to increase resources, particularly of VMS material, is considered by AMC to be high, with VMS mineralisation known to lie at the base of four additional existing gold pits, and with a number of other untested electrical conductors identified during exploration. 1.13 CONCLUSIONS
Scoping studies have been completed into the possible development of a 3 Mt/a CIL circuit primarily to re-process heap leach tailings, and a 5 Mt/a flotation circuit to treat VMS mineralisation. Resource modelling and mining studies have been undertaken to investigate extraction methods and develop mining schedules to supply feed to these plants. A preliminary geotechnical investigation has been undertaken to support the proposed mining methods and mine designs for the VMS deposits which have not previously been mined. A high-level environmental review indicates that acceptable environmental outcomes should be achievable, assuming standard engineering design and operating practices are employed.
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The success of the proposed expansion project relies on two key pieces of infrastructure, namely a 77 km long power line connecting to the National Grid and a 165 km pipeline bringing water from the Nile River. Discussions have commenced with the relevant authorities regarding access to power and water. Capital and operating costs have been developed for both process plants and related infrastructure, with the assumption that the power line and water pipeline are funded as part of the CIL project. A project schedule has been developed showing production starting in 2013 for the CIL plant and 2015 for the VMS concentrator. This schedule allows for completion of feasibility studies followed by plant design, the delayed start to the VMS concentrator reflecting the less advanced status of this phase in terms of resource definition, geotechnical studies, mine design, process testwork and mine development. Financial modelling indicates that both the CIL and VMS phases of the expansion project are economically viable, with NPVs of $149.8 M and $122.7 M, respectively. Base case metal prices were $950/oz for gold and $2.19/lb for copper. However, it must be noted that the bulk of the resources contributing to the VMS mine schedule are classified as Inferred, as is a portion of the CIL plant feed. Consequently, there is a high degree of uncertainty in these resources, and their use in economic modelling is not generally allowed under NI43-101. An exemption has been provided by the Canadian securities regulators, allowing use of Inferred resources for a preliminary economic assessment in this instance. The financial outcomes are particularly sensitive to metal prices: a 10% increase in either gold or copper price improves overall NPV by approximately $80-90 M. Plant throughput is at full capacity for only 5 years in both cases, and significant economic upside exists if additional reserves can be located. VMS mineralisation is known to exist at the base of six oxide gold pits, of which only two have been drilled sufficiently to allow resources to be modelled for use in this study. Of these two, the resources at Hassai South have been modelled using large blocks with partial mineralisation estimated within these blocks. In order to undertake underground mining studies, the mineralisation has been regularised and the associated reduction in grade has a significant impact on project economics. It is believed that improvements in the resource estimation/modelling of the Hassai South underground and Hadal Awatib open pit deposits would assist in more accurate spatial definition of the mineralisation and mining-related dilution, and in turn may have the effect of increasing the schedule grades. It should also be noted, however, that there will likely be a drop in the overall mining inventory tonnes, as contained metal would not be affected. Additional resources are expected to be identified at the other known VMS locations, as well as from testing the numerous other geophysical (electrical) conductors identified in the district, potentially allowing full production to be maintained for several more years. 1.14 RECOMMENDATIONS
Based on the positive outcomes of the scoping study, additional work is indicated to allow completion of feasibility studies to confirm development of the expansion phases. For the CIL phase, such work would necessarily include: Additional mining studies at FS level for in situ and tailings/stockpile reclaim mining Definitive metallurgical testwork on fully representative samples
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Plant and infrastructure design and cost estimation to feasibility level TSF design Confirmation and design of external power supplies Environmental studies.
To this end, La Mancha has announced award of feasibility study work for the CIL phase, for completion by the end of first quarter 2011, with a view to making an investment decision in the first half of 2011. A budget of A$1.69 M has been approved for this work. In addition, Sudanese for Construction and Oil Services has been contracted to design and cost the water the water pipeline from the Nile River at an estimated cost of US$ 250,000. The VMS component of the project is much less advanced, particularly in terms of resource status. Consequently, a 100 000 m, $18 M exploration program has been approved to: Convert Inferred VMS resources to Indicated and Measured categories Test for additional VMS resources beneath the Hadayamet open pit.
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2. 2.1
INTRODUCTION BACKGROUND
La Mancha Resources Inc. (La Mancha) owns a 40% interest in the Ariab Mining Company (AMC) through its purchase of 100% of Cominor in October 2006. AMC currently conducts an open-pit, heap leach gold operation in the Red Sea State of northeastern Sudan. Production commenced in 1991, with a total of over 2.3 million ounces (Moz) of gold produced to date from multiple deposits. However, gold production has declined in recent years, in line with falling head grades and poorer recoveries. The current operation comprises mining, crushing and stacking at a rate of 0.7 Mt/a, with heap leaching using cyanide to recover just over 62 000 oz of gold (2009 figures). Supporting infrastructure includes diesel-powered electric generators, a camp for approximately 600 persons, and water supplied from a nearby borefield which accesses a near-surface aquifer, augmented by a dam to capture any surface run-off. The site is linked by road to Port Sudan on the Red Sea, a distance of some 200 km. La Mancha has reviewed the remaining gold resources and other assets including copper-bearing volcanogenic massive sulphides (VMS) lying beneath some of the open pits and has developed a preliminary business plan to revitalise operations, based on: A new 3 Mt/a CIL gold plant to treat: Remaining in situ oxidised gold ore, primarily from Kamoeb deposit, and stockpiles of acidic ore, at a maximum throughput of 1 Mt/a and annual average grade of 3.38 g/t reducing over time to 2.23 g/t Au, depending on the source Heap leach residues with an average grade of 1.62 g/t Au, at a target rate of 2 Mt/a, increasing once other resources have been depleted.
A new 5 Mt/a copper concentrator to process supergene and fresh VMS resources, initially from the Hadal Awatib and Hassai South deposits, with indications of potential in several other areas. SCOPES OF WORK
2.2
Sedgman Limited (Sedgman) was commissioned by La Mancha to complete a scoping study for the development of a CIL plant and infrastructure3. CSA Global (UK) (CSA) was brought in to confirm heap leach residue resources present at the point when CIL processing is scheduled to commence, and prepare mining plans for the Kamoeb deposits in order to feed the CIL plant. At the same time, La Mancha commissioned AMEC Minproc Limited (AMEC) to undertake scoping level assessment of the potential for a VMS concentrator to be developed, including: A geotechnical assessment of ground conditions, including a review of conditions within existing pits Mining studies for open pit and/or underground extraction of VMS mineralisation Preliminary assessment of environmental conditions as they relate to the VMS concentrator and tailings storage facility (TSF).
A preliminary scoping study into the potential economics of a CIL operation was partly completed by Sedgman in 2008.
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In situ mineral resources comprise oxide gold and VMS resources that have been determined to NI 43-101 standard and previously reported by Remi Bosc of Arethuse Geology Sdn Bhd (Arethuse). Arethuse also completed resource estimation for that portion of the heap leach tailings tested by auger drilling in 2007/08 and 2009. Additional heap leach tailings resources have been determined by CSA for use in the scoping study, and the same company has determined a new Mining Inventory for open pit mining at Kamoeb under the CIL scenario. The scopes called for contributions to the La Mancha NI43-101 Technical Report discussing the potential development of new plants to treat oxide gold ores (CIL plant) and VMS ores (VMS concentrator). The Technical Report describes the resources, available geotechnical information, proposed open pit and underground mining, metallurgical testwork, process and plant design, operating and capital cost estimates, and preliminary economic assessment for the project. La Manchas business plan calls for initial CIL processing in 2013, while the VMS concentrator has been scheduled to commence production in 2015. However, La Mancha requested that power and water infrastructure sufficient for a combined project be included with the CIL plant, and preliminary work in these areas has been completed by Sedgman. In addition to work by AMEC, Arethuse, CSA and Sedgman, information for the Technical Report has been provided by AMC personnel with regards to project history (including exploration history) licensing/permitting, current operations (including site operating costs), current Mineral Reserves and the financial analysis. This Technical Report has been completed in accordance with Form 43-101F Techncial Report of the Canadian Securities Administrators National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101). The Report is based on the outcomes of resource, mining and engineering studies completed by AMEC, Arethuse, CSA and Sedgman as noted in this Technical Report. 2.3 PRINCIPAL SOURCES OF INFORMATION
In contributing to this report, AMEC, Arethuse, CSA and Sedgman have relied on information provided by AMC regarding current operations, plus various data, reports, maps and technical papers listed in the References section at the conclusion of this report (Section 21) and on experience gained from similar deposits. 2.4 PARTICIPANTS AND PERSONAL SITE INSPECTIONS
Details of Qualified Persons and responsibilities are as follows: Bill Plyley, MAusIMM and Chief Operating Officer for La Mancha, was responsible for compilation of the Technical Report and provided specific information regarding Mineral Reserves, adjacent properties, heap leach processing and current operations, existing infrastructure, markets and sales conditions, G&A costs, project implementation and economic analysis, including provision of CIL processed grades and recoveries. Mr Plyley has visited the property on numerous occasions over the past 4 years.
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Graeme Baker, MausIMM and Principal Mining Engineer for AMEC was responsible for those parts of Sections 1, 18, 19, 21 and 22 relating to open pit and underground mining of the Hadal Awatib and Hassai South VMS deposits, with the exclusion of geotechnical aspects which were provided by others. Dean David, FAusIMM and Process Consultant to AMEC, was responsible for those parts of Sections 1,16, 18, 19, 21 and 22 relating to processing of the VMS mineralisation, including metallurgy, plant design, and capital and operating costs. Mr David visited the property in March 2010. Adam Coulson, ACSM, CIMM and Senior Rock Mechanics Engineer for AMEC Earth & Environmental, was responsible for those parts of Sections 1, 18, 19, 21 and 22 relating to geotechnical conditions governing open pit and underground mining of the VMS deposits. Mr Coulson visited the property in March 2010. Ian Thomas, MausIMM and Process Consultant for Sedgman, was responsible for those parts of Sections 1, 16, 18, 19, 21 and 22 relating to processing of gold mineralisation in the proposed CIL plant, including metallurgy, plant and infrastructure design, preliminary capital and operating costs with the exception of the processed grades and recoveries. Mr Thomas visited the property in December 2007. Remi Bosc, Member European Federation of Geologists and Principal Consultant Arethuse Geology (Malaysia) was responsible for those parts of Sections 1, 14, 17, 19, 21 and 22 relating to data verification and estimation of resources other than those for undrilled heap leach tailings. Mr Bosc has visited the property on numerous occasions, most recently in August 2010. Simon Mc Cracken, MAIG, Principal Geologist for CSA Global (UK), was responsible for those parts of Sections 1, 17, 19, 21 and 22 relating to estimation of gold resources in heap leach tailings not previously drilled. Mr McCracken visited the property 25-31 August 2010. Clayton Reeves, MSAIMM and Principal Mine Engineer for CSA Global (UK), was responsible for those parts of Sections 1, 18, 19, 21 and 22 relating to mining of gold resources for the CIL phase of the project. Mr Reeves has spent in excess of seven weeks on site, most recently in September 2010. Jean-Jacques Kachrillo was responsible for Sections 7 to 13 of the Technical Report, relating to geology, mineralisation and exploration, including sampling and analysis.
Other Experts who assisted in providing background information, environmental review, engineering design, cost estimation and cash flow evaluation were : Dr Abu Fatima, Ph.D. Geology, General Manager, AMC, was responsible for Sections 4, 5, 6 and 18.5 relating to the property description, location, access, climate, history and the hydrological/hydrogeological conditions on site. Dr Abu Fatima is site-based. Phillip Rogers, B.Sc. (Hons), Ph.D., MIEEM, Environmental Manager for AMEC Earth and Environmental UK Ltd., who visited site to review environmental conditions particularly pertaining to selection of the VMS tailings disposal area. Phil Payne, Consultant Estimator for AMEC, who compiled the capital cost estimate for the VMS plant.
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Pier Chiti Associate Director Mining with AMEC Earth & Environmental provided input for the VMS tailings disposal facility location and design. INDEPENDENCE
2.5
AMEC, Arethuse, Sedgman and CSA are not associates or affiliates of La Mancha, or of any company associated with La Mancha. Fees for this work are not dependent in whole or in part on any prior or future engagement or understanding resulting from the conclusions of this report. These fees are in accordance with standard industry fees for work of this nature. All sections of the Technical Report have a Qualified Person (QP) taking responsibility for preparation or supervising the preparation. Independent QPs have signed off on exploration data quality, Mineral Resources and Mining Inventory, process testwork, plant design, engineering and costings. However, since Ariab is a producing property, AMC QPs have taken responsibility for the overall report and for providing information regarding project background, land ownership and licences, geology and exploration activities, Mineral Reserves, financial analysis and information regarding current operations. La Mancha is a public corporation. Its stock is traded on the Toronto Stock Exchange under the symbol LAM, and its registered office is 2001, Rue University, Bureau 400, Montreal, Quebec, Canada. Note that all costs and prices are quoted in United States Dollars, unless otherwise specified.
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3.
RELIANCE ON OTHER EXPERTS
AMEC, Sedgman, CSA and Arethuse (The Consultants) have not reviewed any legal issues regarding the land tenure, surface rights and permits, nor independently verified the legal status or ownership of the Property, and have relied upon opinion supplied by La Mancha in this regard. The Consultants have not attempted to verify the potential to acquire water from the River Nile to supply the expanded project. Similarly, while a preliminary review of environmental conditions has been completed by AMEC, reliance is placed on assurances by La Mancha regarding compliance with all government regulations for current operations. QPs employed by La Mancha take responsibility for a number of areas within this report, notably: History of the project Current operations Geology and mineralisation Exploration, sampling and analysis Testwork for heap leach operation Mineral Reserves Taxes and royalties Project economic modelling and evaluation.
The results and opinions expressed in this report by the Consultants are conditional upon the aforementioned supplied data and information being current, accurate, and complete as of the date of this report, and the understanding that no information has been withheld that would affect the conclusions made herein. The Consultants do not assume responsibility for La Manchas actions in distributing this report other than its filing with security regulators.
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4. 4.1
PROPERTY DESCRIPTION AND LOCATION LOCATION
Sudan is located along the northeast coast of Africa on the Red Sea, and is bordered to the east by Ethiopia and Eritrea, to the north by Egypt, to the northwest by Libya, to the west by Chad and the Central African Republic, and to the south by Uganda, Kenya and the Democratic Republic of Congo. The AMC mining operations are located in a remote area within the Red Sea State of Sudan, approximately 450 km northeast of Khartoum and 200 km west of Port Sudan (Figure 4.1). The area is referred to variously as the Hassa project or region, or the Ariab mining district. In this report, map coordinates are displayed as latitude and longitude, or in UTM (Universal Transverse Mercator) coordinates from UTM zone 36 North, Adindan datum, Clarke 1880 ellipsoid.
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Figure 4.1 Location of the Hassai Project
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4.2
MINING CLAIM DESCRIPTION GOLD
AMC is the owner of the exploration and mining concessions in the Ariab district. This ownership is governed by an original Ariab Concession Agreement which, in 1991, transferred all rights of the previous Ariab Mining Development Joint Venture to the newly established Ariab Mining Company. The whole Ariab Mining District is covered by the Reserved Areas as shown in Figure 4.2 and Table 4.1, representing a total surface of more than 20 000 km. A Reserved Area is granted by the Minister of Mines & Energy and confers to the holder an almost exclusive right to carry out exploration and general prospecting for any metal or natural resource in the ground. The right to carry-out detailed prospecting and exploration drilling for specific metals is granted through an Exclusive Prospecting License (EPL), valid for two years. An EPL is a pre-requisite for obtaining a Mining Lease.
Figure 4.2 Prospecting Licences
BLOCK 11
BLOCK 18
Table 4.1 Coordinates of AMCs Reserved Areas Name Ariab Corner A1 A2 A3 A4 Wadi Amur W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 Musmar M1 M2 M3 M4 Longitude 35 00 35 35 35 35 35 00 36 00 35 27 35 27 34 55 34 55 35 00 35 00 35 35 35 35 36 00 34 55 35 55 35 55 34 55 Latitude 18 55 18 45 18 30 18 30 19 25 19 25 19 06 19 06 18 30 18 30 18 55 18 45 18 30 18 30 18 30 18 30 18 15 18 15 Bahora Derudeb Shulai Name Togni Corner T1 T2 T3 T4 S1 S2 S3 S4 D1 D2 D3 D4 B1 B2 B3 B4 Longitude 34 55 34 55 36 00 36 00 36 00 36 17 36 17 36 00 36 00 36 20 36 20 36 00 34 30 34 55 34 55 34 30 Latitude 18 15 18 00 18 00 18 15 19 25 19 25 18 53 18 53 17 50 17 50 17 25 17 25 18 30 18 30 18 00 18 00
All of the AMC deposits in the Ariab mining district are presently covered by Mining Leases (Table 4.2), each valid for gold and associated metals for a duration of 21 years. Additional new concession (18) Derudaib Coordinates:
Latitude A B C D E F 18 00' 18 00' 17 00' 17 00' 17 25' 17 25' Longitude 36 00' Sudan Eritrea Border (37 30) Sudan Eritrea Border 36 45' 36 45' 36 00'
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Figure 4.3 Sudan Gold and Iron Concessions Map
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Table 4.2 Coordinates of Mining Leases Name Dim Dim 4 Grant Date 20/11/2004 No. 10/2004 Longitude 3513'40.2 3513'40.2 3514'14.2 3514'14.2 Hadal Auatib A 01/08/1991 454 3526'26 3526'26 3527'00 3527'00 Hadal Auatib B 01/08/1991 455 3527'00 3527'00 3527'34 3527'34 Hadal Auatib C 15/12/1993 25/1993 3527'34 3527'34 3528'42 3528'42 Hadayamet A 03/05/2000 2/2000 3535'59 3536'32,8 3536'30,8 3535'57 Hadayamet B 03/05/2000 3/2000 3536'32,8 3537'07 3537'05 3536'30,8 Latitude 1839'52.3'' 1839'19.8'' 1839'52.3'' 1839'19.8'' 1847'13'' 1846'08'' 1847'13'' 1846'08'' 1847'13'' 1846'08'' 1847'13'' 1846'08'' 1846'20'' 1845'56'' 1846'20'' 1845'56'' 1841'16'' 1841'15.5'' 1840'10.5' 1840'11'' 1841'15.5'' 1841'15'' 1840'10'' 1840'10.5' Youneim 03/05/2007 05/2008 UmAshar 25/07/2007 01/2008 Medadip 03/05/2007 2/2008 Hamim North 03/05/2007 3/2008 Hamim South 03/05/2007 4/2008 Name Oderuk Grant Date 01/04/1997 No. 1/97 Longitude 3519'13 3519'13 3520'21 3520'21 35 28' 34 35 28' 34 35 28' 52 35 28' 52 35 28' 45 35 28' 45 35 29' 03 35 29' 03 35 24' 14 35 24' 14 35 24' 57 35 24' 57 35 17' 58.1" 35 17' 49.6" 3518'13.3" 3518'21.7" 35 26' 35" 35 26' 35" 35 27' 5" 35 27' 5" Latitude 1839'07'' 1838'34'' 1839'07'' 1838'34'' 18 33 58 18 34 15 18 34' 15 18 33 58 18 34 27 18 34 44 18 34' 44 18 34' 27 18 46 54 18 47 07 18 47' 07 18 46' 54 18)36'19.4" 1836'30.6" 1836'46.9" 1836'36.3" 18 35' 0" 18 34' 30" 18 35' 0" 18 34' 30"
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Table 4.2 Coordinates of Mining Leases Name Hassai Grant Date 01/08/1991 No. 176 Longitude 3523'09 3523'09 3424'17 3424'17 Kamoeb A 16/03/2004 1/2004 3522'12 3522'12 3523'20 3523'20 Kamoeb B 03/16/2004 21/2004 3522'12 3522'12 3523'20 3523'20 Latitude 1842'02'' 1841'30'' 1842'02'' 1841'30'' 1839'26'' 1838'54'' 1839'26'' 1838'54'' 1838'54'' 1838'21'' 1838'54'' 1838'21'' Ganaet 01/08/1991 426 Baderuk 01/06/1996 15/1996 Name Adasedakh Grant Date 01/06/1996 No. 14/1996 Longitude 35 18'47" 35 19'55" 35 18'47" 35 19'55" 35 18'33" 35 19'41" 35 18'33" 35 19'41" 3515'29" 3516'03" 3515'29" 3516'03" Latitude 18 40'00" 18 40'00" 18 38'55" 18 38'55" 18 38'34" 18 38'34" 18 38'01" 18 38'01" 1844'07" 1844'07" 1843'02" 1843'02"
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4.3
MINING CLAIMS BASE METALS
AMC obtained confirmation, by letter from the Geological Research Authority of the Sudan dated 6 December 2007, that AMC is still entitled to the deposits previously discovered by the Ariab Mining Development Joint Venture covered by the previous and present EPLs; and that AMC is entitled to carry out exploration programs for base metals in other areas within the bounds of the original Concession Agreement. 4.4 OWNERSHIP OF MINERAL RIGHTS
AMC is the owner of the exploration and mining concessions in the Ariab Mining District. COMINOR is a shareholder of AMC with 40% of the shares. The Government of Sudan owns 56% of the shares and a private French company the remaining 4%. AMC was incorporated as a Sudanese company in September 1990. It is a private company limited by shares. 4.5 MINERAL ROYALTIES
The gold operations are subject to the following royalties: A Net Smelter Return (NSR) of 7% on revenue is payable to the Sudanese Ministry for Geology (GRAS) A 2.25% Gross Profit tax is payable to La Mancha (via COMINOR) as an incentive fee.
These royalties do not cover the possibility of base metal production and any royalties payable would, therefore, be subject to future negotiations in the event of base metal production. 4.6 ENVIRONMENTAL OBLIGATIONS
In the Ariab Mining District, several pits have been mined for oxide gold and these resources are now exhausted. These pits have not been backfilled. However, in order to hinder wandering cattle and nomads entering abandoned pits to access water, AMC has constructed safety bunds. In addition, the Company has partially backfilled some of the pits with oxide waste to cover exposed sulphidic rock and prevent the formation of acidic water. A provision has been made by AMC to provide for such limited reclamation costs, pending final decision about the re-opening of the pits for base metal mining. 4.7 RELATIONSHIP BETWEEN AMC AND THE SUDANESE GOVERNMENT
AMC maintains a strong working relationship with the Sudanese government. AMCs Chairman is H.E. Dr. Abdel Bagi El Gailani, who is also the Sudanese Minister of Minerals. The Hassai project is presently the only significant mining venture operating in Sudan.
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5. 5.1
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ACCESS
The Ariab district is accessible from Khartoum by the road north to Atbara (paved road in good condition), and then the Atbara-Port Sudan road (Figure 4.1). A gravel track provides access from the Atbara-Port Sudan road to the Hassai mine site (the western access road). From Port Sudan, Hassai can also be accessed via the Atbara-Port Sudan road to Haiya Junction and then a gravel track to the mine site (the eastern access road). The company maintains the local roads in the vicinity of the plant and mine sites. 5.2 PORT FACILITIES
Port Sudan is the major regional port and is managed by Sea Ports Corporation (SPC). SPC was established in 1974 as an independent Sudanese maritime body responsible for construction, development and maintenance of ports, harbours and lighthouses. Port Sudan is divided into North Quays, South Quays and Green Harbour. Green Harbour is undergoing development as part of a long term project that consists of establishing extra quays to serve different port handling operations. There are also two other ports located south of Port Sudan; Port Digna (60 km south) and Al Khair Petroleum terminal (3 km south-east). AMC has a 4500 m2 fenced yard at Port Sudan. It is anticipated that a concentrate storage shed measuring 1800 m2 will be erected in this space to house VMS concentrate bags prior to container loading and shipping to customers.
Table 5.1 Port Sudan Overview Port Area Data Berths Length Depth Area Capacity Current Uses Northern Quay 11 1663 m 8.7 m to 10.7 m Not determined 5.0 Mt/a Bulk lime, molasses, edible oils Southern Quay 4 733 m 10.7 m to 12.8 m 4000 m
2
Green Harbour 2 548 m 14.2 m Not specified Not specified Dry bulk cargo, seeds, containers
3.0 Mt/a Petroleum, containers, bulk grain 2 gantry cranes 4RTG 35 quay cranes
Port superstructure/equipment
Mobile cranes, forklifts, r/or, tractors and trailers available Tugboats of 1600-2000 hp 4 pilot boats of 3600 hp 10 service boats of 180 hp 1 patrol boat of 2000 hp Storage and warehouses 27 warehouses GH storage area 436 000 m2 Harbour accommodates ships up to 50 000 t Operations Pilotage of vessels is compulsory 3 shifts operate on 24 hour basis
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5.3
CLIMATE
The property is in the desert of Northern Sudan where precipitation is infrequent. The climate is arid with a very hot season from June to September during which the maximum temperatures range from 45C to 55C and rainstorms may occur. The coolest period covers the months of January and February with daytime temperatures of 30C and cool nights ranging from 10C to 15C. The dominant winds depend on the season: mainly from the west or northwest during the hot period, and from the north or northeast during the rest of the year. Intermittent rainfall can occur during the period from end of July up to October and the number of rain event averages 3-4. The average rainfall is around 30 mm and the highest recording was 80 mm. No evaporation rates are available at this time. 5.4 5.4.1 INFRASTRUCTURE Buildings and Mine Camp
The Hassai mine camp is approximately 3 km from the processing plant and accommodates approximately 600 personnel (expatriates and locals). It includes accommodation, dining halls, a bakery and local market, and recreational facilities. Mine buildings include offices, workshops, power house, etc. The AMC mine site is equipped with a clinic and physician on standby, available for workers and community alike. An emergency plan includes transportation by ambulance or air to the nearest hospital (25 km away). An on-site communication tower allows cellular phone communication through three mobile phone access providers, and internet access. A total of 17 diesel generators (totalling 5470 kVa) supply electricity to the plant and facilities. 5.4.2 Other Offices
The head office building in Khartoum houses approximately 40 personnel, including general management, financial control and local purchasing. AMC also has a small office in Port Sudan for approximately ten personnel who are responsible for coordinating sea freight shipments, including the purchasing and transportation of supplies for Hassai (food, equipment, etc.). 5.4.3 Logistics
Transportation from the port in Port Sudan to the mine site is carried out by a combination of subcontractors and company-owned trucks. The distance is approximately 200 km, and about 2000 t of consumables are transported each year. Airfreight cargo service into Sudan is provided through Lufthansa, Emirates, Egypt Air and other scheduled flights. A Twin Otter airplane owned by AMC is used for limited transport of personnel.
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5.5
LAND USAGE
The population is semi-nomadic, with people camping around the few wells for most of the year. After the rain, they move toward the grazing areas where they also grow some crops, mainly millet or doura. Camels, sheep, goats and donkeys constitute the herds of domesticated animals in the region. The people belong to the Beja ethnic group, which is subdivided into two main tribes: the Hadendawa, who are concentrated in the mine area, and the Atman. 5.6 PHYSIOGRAPHY AND VEGETATION
The region is characterised by chains of hills separated by sandy valleys that collectively form the main basin joining Khor Ariab and Wadi Amur, the latter flowing towards the Nile. Vegetation consists predominantly of sparse thorny shrubs and dry grasses in the valleys. Grasses cover the valleys for several months after heavy rains, serving as grazing grounds for sheep, goats and camels. 5.7 SURFACE AND GROUNDWATER
Due to the extremely arid desert conditions, water resources in the district are scarce. Water for current operations is sourced from various points including: Fresh as well as saline water sourced from a series of wells located at distances up to 100 km from the Hassai plant. Basins (hafirs) protected by earth dams have been dug to store run-off rainwater; these basins now have a total capacity of over 340 000 m3. Recycled sewage water has also been used in the leach process since 1996.
The basement geology in the Hassai region consists of granite and volcanic rocks, and no sizable underground aquifers are known. Significant rainfall in recent years has greatly increased the water reserves. AMC estimates that current water reserves accessed by existing wells are sufficient to sustain production for at least two more years without any additional precipitation. The River Nile, 165 km from site, constitutes the only major water source in this part of Sudan. It is intended to acquire water rights and construct a pipeline to supply the significantly increased needs of the proposed CIL and VMS concentrator plants.
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6. 6.1
HISTORY PRE-COMINOR
From 1977 to 1981, French-Sudanese teams conducted several exploration programs for various metals (W, Pb, Zn, Cu, Ag, Au, Cr, etc.) over five large areas in Sudan within the framework of a cooperation agreement. One such exploration program focused on 17 gossans in the central part of the Red Sea Hills (Ariab-Arbaat area). These gossans are the weathering products of massive sulphide deposits found at depth. The gold in most of the Ariab mining district is associated with these gossans; the exceptions are Kamoeb and Ganaet gold deposits, although these were also explored during the French-Sudanese programs. 6.2 COMINOR
In 1981, a joint venture agreement was signed between BRGM and the Sudanese government to cover the mining development of three specific areas: Eyob (50 km south of the Ariab district), Ariab and Hamissana (approximately 200 km north of the Ariab area). Detailed exploration work was performed over these three areas from 1981 to 1984. Exploration covered most of the gossans in the Ariab district, although initial work focused on the polymetallic potential of the underlying sulphides. In 1983, however, the discovery of noteworthy gold concentrations in silica-kaolinite-(barite) rocks associated with the gossan at Hassai shifted the interest towards gold. During the same period, the Ganaet and Kamoeb gold deposits were also explored in detail. Groundwater exploration also began in 1983. From 1984 to 1987, exploration efforts were concentrated on the Ariab district. Major trenching work was carried out on all known gossans in the region: Hadal Awatib SW, Hadal Awatib E, Talaiderut, Oderuk, Baderuk and Adassedakh. In February 1985, sufficient data from surface trenching, percussion drilling, core logging and pits were collected at Hassai to justify the installation of a pilot plant. The first gold was poured at Hassai in March 1987. Delays in the negotiations between the parties involved in the joint venture caused work to be suspended from April 1987 to February 1988. Gold production and exploration work was reactivated in April 1988 and the pilot operation program was satisfactorily completed in December 1989. A feasibility report for the Ariab Gold Project performed by BRGM was submitted in May 1990. The report examined 10 known gold deposits in the district within a circular area measuring 25 km in diameter. In eight of these deposits (Adassedakh, Baderuk, Hadal Awatib West and East, Hassai South and North, Oderuk, Talaiderut), gold is associated with silica-kaolinite-barite rock and ferruginous gossans, which are in turn the near-surface expressions of underlying massive-sulphide mineralisation. At Kamoeb, gold is present in quartz veins, and at Ganaet it is associated with barite lenses. Mine production began in 1991 and has yielded over 2.3 Moz of gold to date from a large number of deposits (Figure 6.1). The following oxide deposits are now considered to be exhausted: Adassedakh, Baderuk, Baderuk N, Dim Dim 4, Dim Dim 5, Hadal Awatib E, Hadal Awatib W, Hadal Awatib N, Oderuk and Talaiderut Oderuk W, while those being mined at the end of 2009 were Hassai North, Hadal Awatib Link and Kamoeb.
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Figure 6.1 Hassai Project Location of Mines and Prospects
At present, gold from the oxidised part of massive sulphides is nearly depleted, and the existing pits are floored by massive sulphide. As of June 2010, most of the mining reserves (excluding stockpiles) are in two deposits: Kamoeb South and Hadal Awatib Link.
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7. 7.1
GEOLOGICAL SETTING REGIONAL GEOLOGY
The regional geology has been described in previous NI 43-101 Technical Reports filed by La Mancha (eg La Mancha Resources Inc., December 2009). In summary, the Hassai project deposits lie within granite-greenstone terrane of the Arabian-Nubian Shield of Neoproterozoic age. 7.2 LOCAL GEOLOGY
The oxidised VMS and quartz vein gold deposits and the VMS mineralisation of the Ariab mining district are within the Neoproterozoic Ariab greenstone belt. The host rocks comprise bimodal volcanic, volcaniclastic and siliciclastic strata and late- to post-tectonic granites. Most of the VMS deposits are present within specific stratigraphic units, commonly altered felsic tuffs. A more detailed description of the local geology, structure and age of the mineralisation is provided in La Mancha Resources Inc., December 2009.
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8. 8.1
DEPOSIT TYPES INTRODUCTION
Information regarding deposit types is quoted below in italics from La Mancha Resources Inc., December 2009. The Ariab area is rich in gold and base metals deposits. The three types of gold deposit are summarized in Section 8.2, while base metal-rich VMS deposits are described in Section 8.3. 8.2 8.2.1 GOLD DEPOSITS Oxide and Quartz-Kaolinite-Barite (SBR) Gold Deposits
Oxide and quartz-kaolinite-barite gold deposits are the main type of gold mineralisation in the region and are characterized by gold enrichment in gossans and silica-barite rocks (SBR), both of which are the weathering products of underlying polymetallic massive sulphide deposits. The massive sulphides are volcanogenic in nature and are part of the Ariab Proterozoic greenstone belt. More specifically, most deposits are found within Unit D, the upper member of the differentiated volcanic sequence in the Ariab series. The VMS mineralisation is described in more detail in the next section. Figure 8.1 is a diagrammatic representation of a typical oxide-sulfate gold deposit in the Ariab area, and the relationship with underlying copper-zinc-gold VMS mineralisation. Oxide-sulfate gold deposits represent the main source of ore at Hassai since mining commenced. Only small resources of this type remain and some of these are currently being mined. Other lesser oxidesulfate gold deposits require additional exploration.
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Figure 8.1 Diagrammatic Cross-section Showing Relationship of Ariab Deposits
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8.2.2
Gold-bearing Quartz Veins
The mineralisation at Kamoeb consists of gold-bearing quartz veins, veinlets, stockworks and vein selvages distributed as shown in Figure 8.2. Timing of the gold mineralisation remains enigmatic. Lead isotopic dating of the main quartz veins at Kamoeb suggest they are early and related to the emplacement of the adjacent basement granite with or without gold mineralisation. These veins were subsequently deformed resulting in either remobilisation of the gold or a separate gold mineralising event. The mineralisation displays affinities with mesothermal gold deposits, sharing key geological features such as gold occurrence in moderately deformed quartz veins hosted by metamorphic rocks in a greenstone belt. After mining, it appears that at least some of the gold mineralisation is hosted in deformed wall rocks around the quartz veins.
Figure 8.2 Kamoeb Geology Map
Aplitic dyke
Simplified geological map of Kamoeb quartz veins, labels as follows: KS1, Kamoeb south vein 1; KS2, Kamoeb south vein 2; KE, Kamoeb east; KN, Kamoeb north; KW, Kamoeb west. (Fatima, 2006)
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8.2.3
Gold-rich Barite Lenses Without Proximal Gossan Development
The Ganaet deposit is one of several small mineralised bodies that contain gold in baritic lenses. The Rawai and Hamim prospects have similarities to Ganaet. The mineralisation shares some features with SBR deposits, but lacks any spatial association with underlying VMS mineralisation and is not marked by well-developed gossan zones. It may represent the distal facies associated with VMS mineralisation. Following mining in 2007, it appeared that the barite lenses did not extend at depth, and that gold mineralisation was found in highly deformed corridors, with mylonite fabrics and green chloritic alteration. Gold is also contained in late brittle faults parallel with the fabric and with an apparent, association with magnetite. This strongly suggests shear zone type mineralisation that may have reworked original barite-hosted primary mineralisation. 8.3 VOLCANOGENIC CU-ZN-AU-AG MASSIVE SULPHIDE DEPOSITS
Volcanogenic massive sulphide deposits can be classified into five types based on host rock compositions (Barrie and Hannington, 1999). From the most primitive to the most evolved in a chemical sense, the five host rock compositions considered are: mafic, bimodal-mafic, maficsiliciclastic, bimodal-felsic, and bimodal-siliciclastic. The mafic-siliciclastic VMS type has sub-equal proportions of mafic volcanic or intrusive rocks and turbiditic siliciclastic rocks; felsic volcanic rocks are minor or absent. There may be significant amounts of carbonate within the siliciclastic rocks, but the siliciclastic component always predominates. They are principally of Middle Proterozoic age and younger, and they are commonly complexly deformed. The deposits of Japan and the Windy Craggy deposit of British Columbia, Canada are type examples on land. The rifted continental margin in the Guaymas basin of the Gulf of California, the sedimented oceanic rift of Middle Valley and the Escanaba trough in the NE Pacific ocean, and the Atlantis II deeps of the Red Sea provide three distinct tectonic settings as analogs for the land-based deposits. Maficsiliciclastic VMS deposits are less numerous than most of the other types, but their average tonnage (average of 11.0 MT) is second only to the bimodal-siliciclastic VMS type (Barrie and Hannington, 1999). The VMS deposits of the Ariab mining district are classified as bimodal-siliciclastic type, similar to many of the large deposits in the Iberian Pyrite Belt, and to the Bisha VMS deposit in western Eritrea. It is important to note comparisons with other VMS globally that have similar characteristics to the large VMS deposits of the Ariab district. These deposits are all large, commonly with copper-rich bases4, and with layered, relatively zinc-rich tops. In addition, the deposits may have relatively barren pyritic central mid-sections.
Stratigraphic footwall.
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9.
MINERALISATION
Descriptions of the mineralisation are included in previous Technical Reports (eg. La Mancha Resources Inc., January 2008), and covers remnant gold vein mineralisation at Kamoeb, SBR mineralisation at Hassai South, Hassai North and Yonim, and VMS deposits carrying copper, zinc and gold. 9.1 BASE METAL MASSIVE SULPHIDE DEPOSITS
Exploration activities have intersected massive sulphides at 13 localities. The most interesting deposits in terms of economic potential are: Hassai South: a single lens some 1000 m long and 5-20 m wide, dipping 60o S and extending to at least 400 m. Geophysical surveys indicate possible extensions to over 700 m. The upper, oxide portion has been mined as gold-bearing SBR ore, with supergene ore grading over 5% copper at the base of the pit. Published resources are 20.5 Mt at 1.49% Cu and 1.56 g/t Au, all of which is Inferred (La Mancha Resources Inc., October 2009). Hadal Awatib: the largest of the known deposits, although apparently broken into multiple lenses at Hadal Awatib East, West and North, all of which have supported mining of gold ore from the oxide zone, for total production in excess of 1 Moz. The total strike length exceeds 2500 m, with widths of up to 100 m. Depth extensions have been drill-tested to 500 m with geophysical signatures down to at least 800 m. Dip is sub-vertical. Published sulphide resources for Hadal Awatib East (La Mancha Resources Inc., December 2009) are: Indicated: 2.9 Mt at 1.27% Cu, 0.93 g/t Au Inferred: 28.3 Mt @ 0.99% Cu, 1.18 g/t Au.
Other deposits such as Hadayamet, Taladeirut, Adassedekh, Oderuk and Onur have undergone minimal drill testing at this stage, but interpretation of geophysical data suggests strike lengths of a few hundred metres, thicknesses of 15-40 m and good depth extent in all cases. Drilling has indicated supergene and primary sulphide mineralisation with a range of Cu/Zn ratios and generally minor gold in primary sulphides. 9.2 9.2.1 GOLD DEPOSITS Supergene (SBR) Deposits Overlying VMS Mineralisation
Weathering of VMS deposits has produced supergene gold-bearing gossans and silica-barite mineralisation. These deposits have typical strike lengths in the order of 700-3000 m and are 3-50 m thick. The bulk of this mineralisation has been mined, although mining continues on parts of Hadal Awatib Link. 9.2.2 Quartz Veins
Kamoeb is the prime example of this style of mineralisation. Gold is associated with quartz veins, veinlets and vein selvages in brittle-ductile deformation settings. Kamoeb comprises four zones (Kamoeb North, South East and West, Figure 8.2) ranging from 1-10 m thick and with a cumulative strike length of more than 4 km. Each vein system forms the core of a hilly landform rising 50-100 m above the surrounds. The vein systems extend down-dip for at least 150 m in Kamoeb South. Ore is massive grey, pink and white quartz, with veins sheared and anastomosing along strike. Gold is fine grained, although clusters up to 150 m are developed at times.
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10. 10.1
EXPLORATION EXPLORATION METHODS
Modern exploration activities in the area began in 1977. A non-exhaustive list of the techniques that led to the discovery and definition of actively mined orebodies and other deposits includes: Reconnaissance prospecting and mapping at various scales (1:50 000 to 1:500) Stream-sediment geochemistry Follow-up multi-element lithogeochemistry Reconnaissance percussion drilling Airborne geophysical survey (VTEM 2007) Ground geophysics (mainly spontaneous polarisation with minor gravimetric and EM surveys) Landsat imagery analysis (1997) Trenching Core drilling Reverse circulation (RC) drilling.
Surface mapping and sampling identified a large number of visually and topographically distinct gossans developed over massive sulphides, leading directly to the discovery of the majority of the gold deposits. Mapping and sampling also identified gold-mineralised quartz veins and SBR-type mineralisation. Much of the previous work has been directed towards location of gold mineralisation to maintain feed to the current heap leach operation, although identified deposits are now largely exhausted. More recently there has been a focus on base metal VMS mineralisation, commencing with a 11 415 line-km helicopter-borne VTEM survey flown by Geotech Airborne Limited in 2007 (La Mancha Resources Inc., October 2009). This survey located all previously known VMS bodies, and provided additional information regarding dip and depth extensions to some deposits. In addition, a large number of targets were identified for future evaluation. Drill testing of VMS mineralisation has been undertaken to outline resources in two areas, Hassai South and Hadal Awatib East, this work being completed largely in 2008 and 2009. Drilling included short holes drilled within existing pits to test supergene-enriched upper parts of the deposits, and deeper angled holes from surface to define the primary massive sulphide lenses. All geological exploration data has been compiled into a geographic information system (GIS).
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10.2
SURVEYING
Areas tested by trenches and drilling have been surveyed by AMC's surveyors who have experience in the area dating back more than 15 years. Various types of theodolites, total station and a Leica Differential GPS (GPS station SR530 RTK) have been used over time, allowing the production of good quality topographic maps at scales of 1:1000 and 1:500. Plans are drafted using Microstation software. All surveys are referenced to the UTM system (Datum Adindan). Several triangulation benchmarks are available on site with precise coordinates surveyed by the Sudan Survey Department. All data are digitised using the UTM zone 36 North - Datum Adindan (Clarke 1880) projection. The Digital Elevation Model (DEM) was transferred in 3D-DXF format and uploaded to Surpac; a few minor corrections were made (minor cross-over line issues), but no major issue was detected. All the drill holes were surveyed by professional AMC survey teams using a Leica Differential GPS. Drill collar location files were transferred in a spreadsheet to the geological department prior to database upload. The collars are globally consistent with the DEM. 10.3 MAIN RESULTS
The work described in this sub-section was carried out by AMC or by contractors under AMC control. For example the geophysical survey was subcontracted to Geotech and drilling was subcontracted to Longyear and GED. AMCs activities extend over many years, and gold exploration is not described in detail, since most of the mineralisation has been mined. The reader can refer to three technical reports with additional information: Technical Report February 2008 Technical Report Hassa Resources 2009 Technical report Hadal Awatib resources 2009
When a drill hole is described, only apparent width is reported. The true width is taken in account in reserves and resources calculation. 10.3.1 VMS Prior to 2007
From the early 1980s to the opening of the Hassa mine in 1992, some drill holes designed to test the SBR gold resources also intersected VMS mineralisation. The main VMS intersections reported during this period are included in Appendix 1. These results were generated in the early phases of exploration in the Ariab area when there was no particular focus on gold or base metals. The intersections of massive sulphides were generally complete and give a good indication of the potential grade and width of massive sulphides lenses. Later, when exploration focused on gold, numerous drill holes intersected massive sulphides, but did not drill through them. Although these holes do not give a good indication of the width of massive sulphide lenses, they provide information on the grade, particularly in the upper part of the lenses where enrichment is likely (eg at Hassai where drill hole HASS 053 intersected 10 m at 5% Cu and 2 g/t Au). Because the VMS was not the main goal of the drill program, these results were not followed-up
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by infill holes and very often the results were partial and concerned only a part of massive sulphide body. However, they were sufficient to demonstrate the VMS potential of the area. 10.3.2 2007 VTEM Geophysical Survey
A helicopter-borne Time Domain electromagnetic survey was flown between February 16th and April 11th, 2007. Characteristics of this survey are listed below: Contractor : Geotech Airborne Limited Methods : Electromagnetics (Time domain EM) Magnetics (Total magnetic intensity) Radar altimeter + Differential GPS Block 13 : Block 2 : Block 4 : Block 1 Extension : Block 2 Extension : Hassai = 4762 km Hadayamet = 1385 km Zahateb = 1479 km Youneim = 2326 km Mandilu = 1348 km
Total line: 11415 km (5 blocks)
The method is summarised in Figure 10.1.

Figure 10.1 VTEM Geophysical Survey Basis
The types of VTEM responses from electro-magnetic conductors are shown in Figure 10.2. The results of the survey are very encouraging. Not only were all the known massive sulphides identified by the survey, but, thanks to the low and slow flight of the helicopter (20 m/s and 10 m/ s at an average 85 m above ground), additional details such as the dip of some conductors was recorded with unexpected accuracy. Moreover, at places such as Hadal Awatib and Hadayamet the depth extension of massive sulphide was confirmed.
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Figure 10.2 VTEM Response Types
VTEM results from Hadal Awatib illustrate the accuracy and efficiency of the method. Figure 10.3 shows the VTEM response of the 2.2 km long Hadal Awatib deposit. The strong VTEM response from central part of Hadal Awatib that has not been drill tested should be noted. The numerous anomalies have been listed and classified as follows: they constitute targets for current and future exploration activities. Block North Oderuk extension Hadal Awatib Baderuk extension Younim East Ganaet East Rahadab Shidimann West Medadip South Hadayamet West Tidityu Anomalies A to I Joseph Ganaet South Abukurunt Mandilu East, West and North Eikidi Ientai Tedmi Zahateb Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 1 Priority 2 Priority 2 Priority 2 Priority 2 Priority 2 Priority 3 Priority 1
Block South (Zahateb)
Figure 10.3 VTEM Geophysical Anomaly at Hadal Awatib

(workshops)
H adal Awatib Pipe U nexplor ed ar ea
s o m a lie ctive a n Co n d u g n me n t li a
Drilled boreholes, collars and projected traces Black crosses: top of conductive anomalies, digitised on geophysical sections H adal Awatib East blocks A+ B H adal Awatib East blocks C+D
Red-orange dots: planned boreholes H adal Awatib W est H adal Awatib N or th
11. 11.1
DRILLING INTRODUCTION
Numerous drilling campaigns have been undertaken since the 1980s, involving a series of contractors, using a variety of percussion, RC and diamond core drill rigs. The dominant method for resource definition (particularly for remaining resources) has been diamond drilling. Boart Longyear was the principal contractor between 1993 and 2006, completing 2172 holes totalling nearly 170 km of core in the AMC Reserve Area. Since 2007, RC drilling has been used in all near-surface targets (oxide zone), while core drilling, with RC pre-collar, was used for deeper investigations (VMS deposits). Much of the early work focussed on shallow gold mineralisation in oxidised VMS (SBR deposits, now largely mined out), or quartz veins (Kamoeb). A number of these drill holes intersected massive sulphides beneath oxide gold mineralisation, although frequently they did not penetrate the full thickness of the lens as VMS mineralisation was not the target. For example, at Hadal Awatib East, of 155 diamond drill holes completed in the period 1996 to 2002, only 9 holes penetrated into primary sulphides. 11.2 DRILLING: 1993-2006
A Boart Longyear LY44 operated by Boart Longyear completed the bulk of the resource holes through to 2006. Drilling and sampling were supervised by professional geological staff from AMC. Core diameter was PQ or HQ. Core lengths varied from 0.5 to 1.5 m, averaging 1 m. No core remains from this work: whole cores of mineralised intervals were analysed and barren intervals discarded. Little or no information is available regarding down-hole survey data from the period 1996 to 2004, although very few holes from this period provide information for remaining (unmined) resources. Holes from the period 2005 to 2006 were surveyed at 50 m intervals down hole; little more information is available, but, again, these holes provide little information relevant to the VMS and remaining gold resources. 11.3 RC AND CORE DRILLING: 2008/09
Drilling in 2008 to 2009 was undertaken by General Exploration Drilling Ltd (GED), using three different drill rigs: G & K 850 track-mounted multipurpose drill rig KL400 track-mounted multipurpose drill rig Drilltech DK40 RC drill rig.
The RC drill rigs were used mostly for small SBR targets in the oxide zone, as well as for Kamoeb in-fill drilling. Core drilling (or RC with diamond tails) was used mostly to define the VMS lenses at depth (Hassai South and Hadal Awatib East), and to investigate the overlying supergene-enriched zone. RC pre-collars were drilled for the diamond holes either with the DK40 or the multipurpose rig in RC configuration. The pre-collar hole was then cased and diamond core drilling commenced in NQ diameter. Where drilling conditions permitted, core runs were in 3 m lengths.
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Drill hole deviation measurements were taken on a proportion of the non-vertical core holes, at variable intervals of up to 50 m, using an Eastman single shot camera or EZ-Reflex single shot probe. In the latter case, readings were hand-recorded onto a paper log and digitised in the office. Readings were adjusted from magnetic to true north by addition of 1. The diamond core was then re-oriented and a line drawn perpendicular to the up-hole intersection with the foliation as a guide for cutting. Geological logging was then conducted including the recording of other technical data such as core recovery, core diameter, density and RQD. All technical data collected was then entered into an Excel spreadsheet and subsequently uploaded into the database. A hard copy version of the geological logs is printed and filed at Hassai Mine. In addition to the RC pre-collars, RC drilling was also used to drill some holes into the VMS from the base of pits. Drill cuttings from each hole were collected from a cyclone in a plastic bag at 1 m intervals. The weight of the sample was recorded as an indication of the recovery, and a geological log of the rock type and any indications of alteration and mineralisation recorded. All RC sample rejects and remaining half cores are stored at Hassai. 11.3.1 Hassai South Drilling
A total of 155 diamond drill holes (13 839 m) was drilled between 1996 and 2002 with the Boart Longyear team (Monthel, et al. 2007) on a nominal grid of 25 x 50 m. This drilling was mostly focused on the oxide zone (SBR mineralisation). Only nine drill holes before 2002 penetrated to the sulphide zone. In 2008/09, a total of 51 holes (10 982 m) was completed at Hassai South to provide coverage at approximately 100 m along strike and down-dip in the sulphide zone (supergene and primary domains, Figure 11.1).
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Figure 11.1 Hassai South Drill Hole Location Plan (AMC, 2009 200x100 m Grid)
HASSAI SOUTH VMS AND DRILL HOLES TRACES 1/2000
2068700.
1891.0 1991.0 2091.0 2191.0 2291.0 2391.0 2491.0 2591.0 2691.0 2791.0 2841.0 2991.0
2068600.
HASS_D156 HASS_D072 HASS_D155
HASS_D071
HASS_D070 HASS_D154 HASS_D152 HASS_D153
HASS_D069
HASS_D161 HASS_D068 HASS_D073 HASS_D074 HASS_D162
HASS_D067 HASS_D064 HASS_D037 HASS_D038 HASS_D207 HASS_D040 HASS_D041 HASS_D206 HASS_D039 HASS_D048 HASS_D053 HASS_D054 HASS_D157 HASS_D049 HASS_D158 HASS_D042 HASS_D043 HASS_D205 HASS_D168 HASS_D169 HASS_D050 HASS_D151 HASS_D045 HASS_D044 HASS_D204 HASS_D046 HASS_D047 HASS_D170 HASS_D203 HASS_D063 HASS_D202 HASS_D116 HASS_D115 HASS_D089 HASS_D131 HASS_D093 HASS_D132 HASS_D110 HASS_D099 HASS_D094 HASS_D100 HASS_D167 HASS_D127 HASS_D128 HASS_D140 HASS_D164 HASS_D141 HASS_D136 HASS_D137 HASS_D200 HASS_D194 HASS_D197 HASS_D196 HASS_D199 HASS_D095 HASS_D096 HASS_D165 HASS_D166 HASS_D097 HASS_D195 HASS_D098 HASS_D198 HASS_D101 HASS_D102 HASS_D133 HASS_D134 HASS_D138 HASS_D011 HASS_D139 HASS_D118 HASS_D113 HASS_D119 HASS_D114 HASS_D117 HASS_D103 HASS_D104 HASS_D148 HASS_D107 HASS_D108 HASS_D135 HASS_D147 HASS_D109 HASS_D120 HASS_D086 HASS_D014 HASS_D213 HASS_D212 HASS_D188 HASS_D001 HASS_D187 HASS_D186 HASS_D224 HASS_D181 HASS_D223 HASS_D225 HASS_D180 HASS_D142 HASS_D143 HASS_D111 HASS_D112 HASS_D087 HASS_D088
B.L.
HASS_D077 HASS_D078 HASS_D146 HASS_D121 HASS_D122 HASS_D079 HASS_D080 HASS_D144 HASS_D145 HASS_D125 HASS_D123 HASS_D126 HASS_D124 HASS_D081 HASS_D082 HASS_D083 HASS_D084 HASS_D085 HASS_D173 HASS_D171 HASS_D174 HASS_D175 HASS_D176
HASS_D150 HASS_D051
HASS_D052
HASS_D055 HASS_D056
2068500.
HASS_D209 HASS_D208 HASS_D190 HASS_D211 HASS_D210 HASS_D189 HASS_D012

2068400.
2068400.
HASS_D002 HASS_D220 HASS_D219 HASS_D184 HASS_D216 HASS_D215 HASS_D185
HASS_D004
HASS_D028
HASS_D214 HASS_D191
2068300.
2068200.
2068100.
HASS_D217 HASS_D218
751600
751800
752000
752200 0
752400 200 M
752600
752800
753000
The results of the drill holes completed in 2008 and 2009 from the southern edge of the pits are included in Appendix 1 as are those completed from the floor of the pit. The relationship between true width and observed width is variable, but generally the true width represents at least more than the half of the observed width, except for the holes drilled from the floor of the pits, as illustrated in Figure 11.2.
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2068100.
2068200.
2068300.
2068500.
HASS_D057 HASS_D149
HASS_D059 HASS_D058
HASS_D172
2068600.
B.L.
2068700.
2068800.
2068800.
Figure 11.2 Cross-section Through Hasai South Showing Relationship Between Intersected and True Thickness
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11.3.2
Hadal Awatib East Drilling
A total of 236 diamond drill holes (22 337 m) were drilled prior to 2000, focussing mostly on delimitation of the oxide zone. Of these drill holes, only eight targeted the VMS mineralisation, while an additional 29 went through the oxide zone and into the sulphide zone. From 2004 to 2006 two successive diamond drill campaigns were completed to define remaining resources at the Link Zone (oxide zone), currently being mined. Only four of these holes went into the sulphide domain. In 2008-09, 63 holes (7864 m) were completed into the VMS deposit, mainly from the base of the pit. The drill pattern is irregular, approximating 40 x 20 m in shallower parts, widening to 50 x 200 m at depth (Figure 11.3).
Figure 11.3 Hadal Awatib East Drill Hole Location Plan (AMC, 2009 100x50 m Grid)
HADAL AWATIB EAST A/B & C/D/E - VMS General Map 1/2000
78250 2078250
N
8110 8160 8180 8225 8330 8260 HAE_D109 8305 8440
78250
78200
2078200
78200
78150
2078150
AA'
HAE_R268 HAE_R275 HAE_R276 HAE_D108 HAE_D107 HAE_D323 HAE_R277 HAE_R278 HAE_R279 HAE_R280 HAE_R297 HAE_R281 HAE_D320 HAE_D282 HAE_D319 HAE_D321 HAE_D121 HAE_D250 HAE_D318 8225 8260 HAE_D122 HAE_D112 HAE_D119 HAE_D118 HAE_D248 HAE_D249 HAE_D252 HAE_D236 HAE_D240 HAE_D211 HAE_D085 HAE_D120 HAE_D243 HAE_D237 HAE_D239 HAE_D238 HAE_D233 HAE_D234 HAE_D235 HAE_D325 HAE_D076 HAE_D077 HAE_D324 HAE_R295 HAE_D075 HAE_R286 HAE_R287 HAE_R293 HAE_D095 HAE_D042 HAE_R294 HAE_D044 HAE_D096 HAE_D097 HAE_D043 8940 HAE_D073 HAE_D074 HAE_D078 HAE_D079 HAE_D247 HAE_D246 HAE_D081 HAE_D080HAE_D244 HAE_D245 HAE_D187 HAE_D188 HAE_D189 HAE_D213 HAE_D212 HAE_D214 HAE_D145 HAE_D146 HAE_D144 HAE_R304 BB' HAE_D193 HAE_D194 HAE_D195 HAE_D142 HAE_R306 HAE_D143 HAE_R305 HAE_D196 HAE_D197 HAE_D170 HAE_D171 HAE_D198 HAE_D147 HAE_R308 HAE_D164 HAE_D199 HAE_D168 HAE_D140 HAE_D200 HAE_D148 HAE_D165 HAE_R307 HAE_D169 HAE_D141 HAE_D259 HAE_D201 HAE_D202 HAE_D166 HAE_D203 HAE_D167 HAE_D178 HAE_R309 HAE_D204 HAE_D176 HAE_D205 HAE_D186 HAE_D175 HAE_D177 HAE_D206 HAE_D215 HAE_D185 HAE_D207 HAE_D183 HAE_D208 HAE_D184 HAE_D180 HAE_D181 HAE_D209 HAE_D182 HAE_R310 HAE_D138 HAE_D163 HAE_D139 HAE_D311 HAE_D128 HAE_D126 HAE_D129 HAE_D127 HAE_D124 HAE_D136 HAE_D137 HAE_D313 HAE_D125 HAE_D130 HAE_D312 HAE_D131 HAE_D179 HAE_D149 HAE_D210 HAE_D314 HAE_D161 HAE_D162 HAE_D150 HAE_D315 HAE_D157 HAE_D158 HAE_D151 HAE_D152 HAE_D132 HAE_D133 HAE_D227 HAE_D134 HAE_D135 HAE_D216 HAE_D154 HAE_D217 BB' HAE_D155 HAE_D156 HAE_D153 HAE_D218 HAE_D219 HAE_D228 HAE_D229 HAE_D221 HAE_D220 HAE_D230 HAE_D231 HAE_D191 HAE_D190 HAE_D222 HAE_D223 HAE_D254 8940 8800
758800 758900
8505
8615
8700
8800 8870
78150
HAE_D005B HAE_D005
78100 2078100
HAE_R260 HAE_R261 HAE_R262
HAE_R264 HAE_R265
HAE_R269 HAE_R263 HAE_D110 HAE_D316 HAE_R270 HAE_R271
78100
9045 9140 9170

78050
HAE_R296
78050
2078050
HAE_D086 HAE_D241 HAE_D242 HAE_D084 HAE_D082 HAE_D083
HAE_R266 HAE_R267
HAE_R272 HAE_R273
HAE_D172 HAE_D173 HAE_D174
HAE_D317 HAE_R274
78000 2078000
78000
8110 8160 HAE_D283

77950 2077950
8180
77950
8305
77900 2077900
HAE_D111 HAE_D115 HAE_D116 HAE_D113 HAE_D114
Block A+B
758200 758300 758100
HAE_D251 8330
HAE Link
8440 8505
758400 758500
AA'
77900
HAE_D258
77850
2077850
Block C+D
HAE_D253 8615
758600
8870 HAE_D257
HAE_D159 HAE_D160
HAE_D224 HAE_D225 HAE_D226

759200 759100 759300
77850
8700
758700
HAE_R255 9045
759000
HAE_R256 HAE_D192 9140 9170
HAE_D232
58100
58200
58300
58400
58500
58600 0
58700 100 M
58800
58900
59000
59100
59200
59300
The results obtained from holes drilled on the southern edge of the pits are included in Appendix 1. The relationship between true width and observed width is variable, but generally the true width represents more than the half of the observed width, except for the holes drilled from the floor of the pits, as illustrated in Figure 11.4.
Figure 11.4 Hadal Awatib Relationship Between Intersected and True Width
11.3.3
Kamoeb Drilling
The Kamoeb area was first drilled in 2001. Up to 2004, 289 diamond holes were completed for 21 351 m. Kamoeb South was drilled every 50 m, whereas Kamoeb West and North were drilled at approximately every 100 m, on an irregular pattern. In 2008/09, 136 RC holes and 2 RC holes with diamond tails were completed on the Kamoeb group, totalling 7109 m. In total 466 drill holes totalling 36 676 m and 20 111 assays are recorded in the database and were used for the delimitation of the Kamoeb group gold resources (Figure 11.5) as follows: Kamoeb South and East: 340 drill holes, 28 656 m and 17 276 assays Kamoeb West: 39 drill holes, 2588 m and 432 assays Kamoeb North: 87 drill-holes, 5432 m and 2403 assays
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Figure 11.5 Kamoeb Drill Hole Location and Topographic Plan - 250 x 250m grid (UTM coordinates 36N, Adindan Datum)
Diamond drilling RC drilling RC with Diamond tail
Kamoeb North
Kamoeb North Kamoeb East
Kamoeb West Kamoeb South
11.4
HEAP LEACH RESIDUE DRILLING
In 2007/2008, and again in 2009, AMC undertook auger drilling of a number of heap leach pads where leaching had been completed. These pads were designated A to D, and lie in the vicinity of the Hassai Mine and process plant. Drilling was conducted by Dump & Dune using a cased auger. The then-active dumps were not drilled. The drill pattern was typically 25x20 m. A total of 606 holes were completed, for 6509.5 m (4419 samples). Drill collars and the heaps themselves were surveyed by the mine survey team using Garmin DGPS and total station equipment. Samples were collected over 1.5 m intervals and brought to the core-yard for sample splitting. Sample weights were recorded for each interval during the 2007/2008 program, and recovery was determined.
12. 12.1
SAMPLING METHOD AND APPROACH DRILLING, SAMPLING AND SAMPLE PREPARATION
The drilling approach is detailed in Section 11, sampling method, sample preparation and analysis in Section 13, and quality control methods employed in Section 14. 12.2 RC AND CORE RECOVERY HASSAI SOUTH AND HADAL AWATIB EAST
Core recovery and RQD has been measured systematically since 1992. All such data from the 2008/09 program have been loaded into the database. Prior to that, measurements were made but were not loaded systematically into the database. However, historical reports confirmed the results of recent drilling, ie that recoveries were average to poor in the oxide zone, improving to very good (>90%) in supergene and primary sulphide mineralisation. For recent diamond drilling at Hassai South, 90% of the primary mineralisation intervals were above 98% recovery, while 90% of supergene mineralisation intervals exceeded 90%. In most cases where RC drilling intersected base metal sulphide mineralisation, mineralised intercepts have now been replaced by core drilling. However, since 2007, where RC drilling supplies resource information samples (as at Hadal Awatib East), samples have been weighed, demonstrating acceptable recoveries in sulphide zones. All supergene and primary mineralised intersections at Hassai South were from core drilling. 12.3 RC AND CORE RECOVERY KAMOEB
Core recovery for Kamoeb is very good, approximating 100% in the mineralised zone 99% of the time. RC weights were systematically recorded for each metre drilled. Accuracy of weight measurement is not very precise, but indicates a satisfactory recovery of RC samples. Median weight is 31 kg with a coefficient of variation of 18%. 95% percent of samples are between 20 and 40 kg. 12.4 AUGER RECOVERY TAILINGS
Drilling samples from 2007/2008 drilling were weighed. Based on the nominal drill hole diameter (50 mm), theoretical recovery was calculated for a range of densities. Median theoretical recovery for 2007/2008 drilling over this range was between 79% and 98.6%, confirming good to very good recovery. Drilling sample recoveries for 2009 work were measured indirectly, but suggest similar recovery to 2007/2008 drilling.
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13. 13.1
SAMPLE PREPARATION, ANALYSES AND SECURITY INTRODUCTION
Different approaches have been adopted for exploration samples for gold and base metal mineralisation. 13.1.1 Gold
Core samples from 1992 to 2006 for gold were prepared on site and analysed at AMCs mine laboratory using a cyanidable gold method. Since 2007 exploration samples (RC and core) for gold have been prepared mostly at Hassai and assayed by Intertek, Jakarta, using fire-assay methods. The Kamoeb resource estimate is based on a mix of both methods. Most of the oxide VMS (SBR) resource estimates are based on cyanidable gold assays. 13.1.2 Base Metals
Base metal sulphide core samples from recent drilling (2008/09) were sent to the Intertek laboratory in Jakarta (half or quarter cores) for preparation and analysis (fire assay for gold, and acid attack with AAS for base metals). Earlier core samples were prepared on site (full core), and analyses undertaken off-site, but few records exist from this time and there is uncertainty about which laboratory undertook the work. The VMS resources (gold and base metals) are based very largely on the Intertek assays. 13.1.3 Heap Leach Tailings Gold
Auger samples from drilling of heap leach pads A to D were prepared on site. The 2007/2008 samples were originally analysed on site for cyanidable gold, but the samples were thereafter sent to Intertek, Jakarta for reassay by fire assay, and the latter results were used for resource estimation. The 2009 samples were analysed at Intertek, Jakarta. Tailings resources are therefore based on fire-assay data. 13.2 13.2.1 13.2.1.1 SAMPLING, SAMPLE PREPARATION AND STORAGE Gold Exploration: 1992 to 2007 Core Samples
Historical drill hole sampling is described as follow by Monthel, et al. 2007: Material is sun-dried if required Whole core is jaw crushed to -16 mm (6 to 12 kg). Riffle split to approximately 3 kg sub-sample Grinding to -2 mm using a Nyberg cone crusher Riffle split and a several hundred gram split is milled to 125 m (preceded by a quartz charge if the bowl is dirty) pH test: samples pH<1.5 are roasted for 2 hours at 650C
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Split to four by 75 g sub-samples for: Cyanide gold analysis at AMC mine laboratory Three samples retained as possible check samples for pH, total gold, polymetallics, etc.
Once results have been provided, the geology department retains samples with gold >1.5 g/t, as well as sulphide samples.
All gold assays were made at the AMC mine laboratory using a cyanidable gold leaching method (see section below). 13.2.1.2 Gold Analysis by Cyanide Leach (AuCy)
This is undertaken at the AMC mine laboratory. A 20 g sub-sample is mixed with 50 ml of NaCN (5 g/L) and NaOH (1%), shaken for 3 hours, and analysed by AAS with a detection limit of 0.1 g/t. Data is manually compiled, entered into a spreadsheet and forwarded to the Geological Department. This method is in still use for grade control and plant control samples, as well as for reconnaissance drilling samples. 13.2.2 13.2.2.1 Gold Exploration: 2008/09 Core Samples
Samples are prepared as presented in sub-section 13.2.3.2 au-dessous. Quarter cores were sent to Intertek, Jakarta. 13.2.2.2 RC Samples
In 2008, RC samples were weighted and sun-dried if necessary. Full samples were then riffle split to 1 kg using a 3-stage riffle splitter. The coarse rejects were stored, and 1 kg sub-sample submitted to Intertek for further grinding and analysis. In 2009, following the setting-up of an exploration sample preparation laboratory on site, RC samples were split to 5 kg, then sent to the sample processing laboratory for cone crushing and splitting to 1 kg. Rejects are stored in sea containers at AMCs camp. The 1 kg sample crush was pulverised using Labtechnic LM2 mills to an estimated -125 m, and split to 250 g. The 250 g sample was submitted to Intertek for further grinding and analysis. The RC samples were packed in wooden boxes for road transport to Khartoum. From there they were airfreighted to Jakarta where they were collected by Intertek, and processed according to the laboratory PT01 procedure. This involved drying (105C), crushing and pulverising the entire sample using Labtechnic LM2 mills to 95% <75 m. 13.2.2.3 Analysis, Fire-assay
All pulps were analysed by Intertek, using a 30 g or 50 g sub-sample taken for fire assay with AA finish. A repeat assay using gravimetric finish was undertaken for samples >50 g/t Au.
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13.2.3
Base Metal Sulphide Exploration
From 1992 to 2007, full cores were sampled and prepared in AMCs sample preparation laboratory. Sulphide samples were assayed in AMCs mine laboratory for gold by cyanidable leach, but these results were not used for the sulphide resource estimation. The bulk of drilling for VMS resource estimates was undertaken in 2008 and 2009. Samples were prepared in both AMCs and Interteks sample preparation facility, and analysed by Intertek using fireassay for gold and acid attack with AAS for silver and base metals. 13.2.3.1 Diamond Drill Holes, 1996-2002
Historical drill hole sampling is described as being done in an exhaustive manner (Monthel, et al. 2007). Whole core was sampled at intervals ranging from 0.75 to 1.5 m, depending on lithological contacts. Physical preparation of the samples was carried out by teams of workmen supervised by an experienced foreman at the AMC laboratory. Whole core was first crushed to -16 mm, split down to 3 kg, ground to 2 mm, split down to 200 to 400 g, and ring-milled to 125 m. A quarter of the sample was submitted for assay, while the pulp reject was kept for further analysis if required. Very little remains from these early historical samples, as full core was used in sample preparation, most of pulp rejects have not been kept and supposedly barren cores were disposed. The lack of reference samples from historic drill hole is considered as a minor issue for the estimation of sulphide ore, since few such holes were used for resource estimation (eg only 9 of 60 intersections at Hassai South are from pre-2008 drilling), and the results from older holes are in good agreement with adjacent more recent drilling. 13.2.3.2 Diamond and RC Drilling, 2008-09
A 1 kg sample has been taken from each RC pre-collar sample. One hole on every other traverse is submitted for analysis. If there is any mineralisation, additional holes will be submitted but this appears unlikely. Logging and sampling of drill core was carried out by field geologists and experienced foremen, under the supervision of a senior geologist, and involved: True depth correction compared to the driller depths Technical logging including RQD and core recovery based on corrected depth and whole cores Sampling line drawn along the cores Sawing of the cores Geological logging and photographs of all cores boxes Sampling according to the geologist sampling plan Always the same half of the core sent for assay Samples intervals ranging between 0.5 and 1.5 m depending on the geology.
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Half core samples were packed in wooden boxes, which were transported by truck to Khartoum. They were then airfreighted to Jakarta where they were collected by Intertek, and processed according to the laboratory PT01 procedure. This involved drying (105C), crushing and pulverising the entire sample using Labtechnic LM2 mills to 95% <75 m. For some samples, primary crushing followed by a first split to 1 to 2 kg may have occurred. All cores are stored in a core-shed, or in a sea container. All core boxes are properly labelled and carefully stored. 13.2.3.3 Base Metal Assaying
1996-2006 Drilling Details regarding assaying samples from the small proportion of diamond drill holes completed in the sulphide zone between 1996 and 2006 are scanty. Gold was assayed by fire assay (external laboratory) or by 3-hour cyanide leach and AAS (Hassai Mine laboratory). Silver and base metals are believed to have been assayed at an external laboratory, most probably OMAC in Ireland, as reported by Monthel et al., 2007, although no records are available. It appears that quality control samples were not included with these samples. Note that silver and lead contents are not an issue since the grades are low and usually below a reasonable cut-off. Given the relatively low proportion of historical assays compared to more recent assays, these historical base metals assays were included in the latest resource calculations. As might be expected, there is a significant difference between cyanidable gold and fire assay results in the sulphide samples, thus all cyanidable gold assays were discarded for the latest base metal sulphide resource estimate. 2008-2009 Diamond Drill Holes All the samples were submitted to Intertek, Jakarta, which is an independent laboratory with ISO17025 accreditation. The laboratory was visited by the author in May 2009 and is considered to meet international standards. Silver and base metals were assayed using the Intertek procedure GA30: Triple acid digestion (HCL/HNO3/HClO4) followed by accurate volumetric finish AAS analysis.
Gold was assayed using fire assay with AAS finish, on a 30 g pulp. 13.2.4 Heap Auger Drill Samples
Sample preparation in 2007 was undertaken by AMC at Hassai Mine as follows: Weighing of sample Drying Crushing to D95 <2 mm
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Splitting to approximately 250 g; remainder (approximately 750 g) stored on site as reference material Milling to 125 m Splitting into four tubes, one for assay and the remainder as duplicate and reference samples.
Intertek analysis of 2007 samples was by fire assay on 30 g charges with AA finish. Samples from 2009 drilling were split on site to 250 g, with the remainder stored on site for reference. The 250 g sub-sample was submitted to Intertek, Jakarta, where it was milled to -75 m in an LM2 mill, with a 50 g sub-sample taken for fire assay with AA finish. A repeat assay using gravimetric finish was undertaken for samples >50 g/t Au. As with base exploration samples, the auger samples were transported by truck to Khartoum. They were then airfreighted to Jakarta where they were collected by Intertek. A proportion of the rejects from 2007 drilling stored on site has been damaged. Samples from 2009 remain intact. 13.3 13.3.1 DRY BULK DENSITY Core Samples
Dry bulk density in the oxide zone and supergene/primary mineralisation was measured systematically on drill core, using a standard hydrostatic method with wax on half core lengths of 5 to 8 cm, as follows: Air drying of the sample. Weighing of the dry sampler, using an electromechanical balance (weight Ws). Coating of the sample with a thin paraffin film of known density (0.925), and weighing in air (weight Wt). Hydrostatic weighing of the paraffin coated sample immersed in water (weight Wti). A Mettler PM2000 electromechanical balance, fitted with a hydrostatic weighing device is used for the process. Density is calculated using the following formula: d = Ws/((Wt-Wti)-(Wt-Ws)/0.925).
Systematic density measurements from core drilling of supergene and primary mineralisation from 2008 drilling were undertaken using a similar procedure. Overall results can be summarised as follow: Hadal Awatib East Oxide zone (SBR): 1380 samples, with density ranging from 1.7 to 2.6 (min=1.2, max=3.4) with an average density of 2.18 Sulphide zone (supergene and primary): 58 samples, ranging between 1.0 and 4.9, averaging 4.39 Supergene: 343 samples ranging from 1.5 to 5.0, average 4.19 Primary: 168 samples ranging from 2.68 to 4.93, average 4.31
Hassai South (sulphide)
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Kamoeb: 46 samples, ranging from 1.76 to 2.93, averaging 2.56 (median = 2.61). Additional data from GEOSICA suggest an average density of 2.8. Auger Samples
13.3.2
A total of 40 measurements were made at various points on heaps A to D in 2007, with a further three measurements made in 2009. Three methods were tested, with the Hand-compacted density method results used for converting volume to tonnage. The Hand-compacted method involves filling a box of 10 405 cm3 volume with dump material, using a shovel. Fill is compacted by hand every 5 cm. When full the box is weighed, dried and reweighed to allow calculation of wet and dry bulk density. The in situ heap material consists of agglomerated pellets up to approximately 1 cm top-size, and while it is deposited uncompacted, it packs well, and undergoes some compaction in the heaps due to deposition of overlying layers. The mean dry bulk density varies from 1.5 to 1.9 depending on the compaction factor. This variability is due to the nature of the heap material as well as the somewhat subjective nature of the test. Reconciliation with production data (2007) suggests a wet density of 1.65 to 1.7, with a corresponding dry density of 1.5 to 1.6. For resource estimation purposes, a conservative value of 1.5 was selected. No density quality control has been undertaken.
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14. 14.1
DATA VERIFICATION DATA COLLECTION
Recent drill hole data is compiled in a master spreadsheet. The drill hole data collected by the exploration team and transferred to the master Excel spreadsheet is verified by the exploration geologist dedicated to the management of the data. Historical drill hole data were collected on a similar manner, using several mining softwares (SERMINE, GDM) and Excel spreadsheets. The data were compiled collected within a simple database and reexported for resources estimation. During the various migrations between systems, some issues appeared for duplicates and for samples depth from and depth to. Database validation was completed to identify and resolve such issues. A separate Excel-based database was employed for the heap auger program. Logs were recorded under supervision of an experienced geologist. Relevant information regarding data verification for this dataset is contained in Section 14.7. The master Excel spreadsheet is endorsed by the AMC Exploration Manager before use in resource modelling. 14.2 ASSAY DATA QUALITY
Pre-2008 drill hole samples were not submitted with a proper quality assurance/quality control (QAQC) programme. However, these holes contribute little to the database for estimation of remaining resources, including the base metal sulphide resources. An Inter-laboratory test for a limited drilling program in 2005/06 was undertaken in Hadal Awatib East oxide zone. This indicated a consistent bias of 7 to 10% between AMC Mine laboratory (cyanidable gold) and OMAC (fire assay gold), the mine laboratory returning lower values (Monthel, et al. 2007). Similar tests were undertaken for Kamoeb, first in 2003 (Grove, 2003) with 107 samples sent to OMAC, Ireland and in 2009 (AMC, Bennet, 2009) with 100 samples from 2003/04 pulps sent to Intertek Jakarta. Conclusions are similar, and the results show an acceptable correlation between the different analyses, with the fire-assay being 5-10% higher than the cyanidable gold. The fire assay analyses tend to return higher values for samples >10 g/t Au, however the number of samples in this range are limited.
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Figure 14.1 Kamoeb 2003 AMC/OMAC Check Assay (Grove, 2003)
KAMOEB Check Assay QC Plot

25 20 OMAC FA_AU 15 10 5 0 0 5 10 15 AMC CY_AU 20 25 y = 1.0584x R = 0.9315
A thorough quality control scheme was applied during the 2007/09 drilling campaign for all deposits, involving blanks, duplicates and certified reference materials (CRM, or standards) for gold and base metals inserted in the whole sequence of samples, as follows: Hadalal Awatib East: 234 blanks (3.6% of samples), 434 duplicates (6.7%) and 397 standards (6%) have been interspersed in 6473 samples Hassai South: 118 blanks (3.2%), 212 duplicates (5.7%) and 252 standards (6.75%), amongst 3733 samples Kamoeb: In 2008, 140 blanks (3.4%) 137 duplicates (3.3%) and 144 standards (3.5%), amongst 4106 samples In 2009, 140 blanks (1.8%) and 404 standards (5.3%), with 7623 samples 2008, 93 blanks (3.3%) 89 duplicates (3.2%) and 173 standards (6.2%) with 2794 samples 2009, 36 blanks (2.2%) 105 duplicates (6.5%) and 84 standards (5.2%) with 1625 samples.
Tailings:
Assay data from recent drilling is emailed to the project geologist by Intertek, and compiled with sample information in an Excel spreadsheet.
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14.2.1
Blanks
These were made from sieved sand dune material, and were presented in 50 g tubes at a rate of approximately 2% to 4%. Results display a slightly elevated gold background (average 0.06 g/t Au) remain below a generally accepted level of 5 times the detection limit; these levels may indicate a low level of site pollution, but will not materially affect resource estimates. Outliers, as identified by anomalous multi-element signatures, reflect sample swap errors. In 2007/08, some anomalous blanks values were identified in the tailings dataset. A small number of blank samples returned values greater than 0.1 g/t, indicating possible contamination. Three batches of results from Heaps B and C were eliminated from the resource database on this basis. 14.2.2 Standards
Eleven commercial standards (Standards or CRMs) supplied by Rocklabs, Gannet and Geostats were used for assay quality control. These samples represent a wide range of gold and base metal (Cu, Zn) grades and sulphide-bearing matrix types (Table 14.1). CRM was submitted as 30 to 50 g sachets accompanying exploration (primarily cut core) samples, at a rate of approximately 4-7%. A small number of sample handling errors was detected, including misidentified Standard number and exchange with exploration sample number; this is readily recognised on the basis of the characteristic multi-element signature of each Standard. Results were assessed in terms of coefficient of variation (COV = Standard deviation / average). A good laboratory with regular precise assay will have a COV) in the range of 3-5% for gold, and below 3% for base metals. Note that the lower the certified value is, or the lower the number of measurement is, the higher is the coefficient of variation. The Intertek analyses show acceptable to good COV for gold and base metals (Table 14.2 to Table 14.5). High COV values for two Standards are related to small statistical data-sets. No significant bias was observed between Intertek results and the accepted CRM values.
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Table 14.1 Characteristics of Standard Reference Materials Laboratory Name Matrix Au (ppm) VMS Resources Gannet Gannet Geostats Geostats Gannet Gannet Gannet Geostats Geostats Geostats Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs Rocklabs PGO Compass GBM-308-13 GBM-308-14 SU011 SU008 SU012 G3018 G9076 G3055 K2 (HiSilK2) HiSilK2 OxF65 OxH55 OxH66 Oxi54 OxJ64 OxL63 OxN62 OxP61 HiSilK2 OxH55 Oxi54 OxE56 Si42 OxJ64 OxF65 Sulfide Sulfide Cu Sulfide Ore (16%S) Cu Sulfide Ore (32%S) Sulfide (2.54%S) Sulfide (0.27%S) Sulfide (21.2%S) Pyrite concentrate Sulphide gold ore Sulphide gold ore Siliceous (1.0% S) Siliceous (1.0% S) Oxide material Oxide material Oxide material Oxide material Oxide material Oxide material Oxide material Oxide material Oxide material Oxide material Oxide material Oxide material Siliceous Oxide material Oxide material 0.97 0.41 2 1.19 7.25 2.43 3.47 3.474 0.805 1.282 1.285 1.868 2.366 5.865 7.706 14.92 3.474 Tailings Resources 2.6 0.11 1.858 3.719 0.4 0.04 0.64 1.6 0.56 0.963 1.902 3.3 3.6 0.325 0.651 15.7 10.8 19.8 40.2 Cu (%) Zn (%) Pb (%) Ag (ppm)
Kamoeb Resources
1.282 1.868 0.611 1.761 2.366 0.805
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Table 14.2 CRM Assay Results Oxide Gold Standard Count Expected Value (Au g/t) Tailings, 2008 OxH55 OxI54 OxE56 Si4 OxJ64 OxH55 OxF65 Blank G301-8 G305-5 G907-6 G306-4 G999-4 OxF65 OxH55 OxH66 OxI54 OxJ64 HiSilK OxL63 OxN62 OxP61 72 42 15 10 99 95 32 20 19 50 47 34 29 13 50 34 36 1.28 1.87 0.61 1.76 2.37 Tailings, 2009 1.28 0.81 Kamoeb, 2008 1.19 2.43 7.25 21.57 3.02 Kamoeb, 2009 0.81 1.28 1.29 1.87 2.37 3.47 5.87 7.71 14.92 0.81 1.31 1.32 1.87 2.38 3.42 5.93 7.35 14.59 2.21 1.86 1.47 2.44 2.59 3.19 2.78 1.32 1.25 0.7 2.2 2.7 0.6 1.4 -0.7 1.2 -4.6 -2.1 1.09 2.36 7.09 21.05 2.98 4.8 4.0 2.2 2.5 3.2 -8.5 -2.8 -2.2 -2.4 -1.4 1.29 0.80 0.03 2.3 2.7 0.9 -1.0 1.32 1.83 0.65 1.77 2.32 3.2 3.4 3.2 3.6 1.4 3.1 2.3 5.8 0.3 1.8 Average Value (Au g/t) Coefficient of Variation (%) Bias (%)
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Table 14.3 CRM Assay Results VMS Gold Standard Count Expected Value (Au g/t) Average Value (Au g/t) Coefficient of Variation (%) Hadal Awatib East Su011 SU008 SU012 G301-8 G907-6 G305-5 Su011 SU008 SU012 G301-8 G907-6 G305-5 HiSilK2 2 10 2 65 66 64 16 12 13 20 16 19 7 0.97 0.41 2.00 1.19 7.25 2.43 Hassai South 0.97 0.41 2.00 1.19 7.25 2.43 3.47 0.93 0.43 2.03 1.14 7.15 2.42 3.40 5.4 12.4 2.9 3.0 2.4 1.3 1.3 -4.1 4.9 1.5 -4.2 -1.4 -0.4 -2.0 0.80 0.42 2.11 1.14 7.15 2.42 18.7 7.9 6.4 4.0 2.3 3.2 -22 2 5 -4 -1 0 Bias (%)
Table 14.4 CRM Assay Results VMS Copper Standard Count Expected Value (Au g/t) Average Value (Au g/t) Coefficient of Variation (%) Hadal Awatib East PGO Compass GBM308-13 GBM308-14 SU011 SU008 SU012 PGO Compass GBM308-13 GBM308-14 SU011 SU008 SU012 33 35 50 66 2 10 2 31 21 52 41 16 12 12 2.60 0.11 1.86 3.72 0.40 0.04 0.64 Hassai South 2.60 0.11 1.86 3.72 0.40 0.04 0.64 2.59 0.12 1.85 3.64 0.43 0.05 0.66 2.7 11.5 2.1 2.2 4.2 57.8 4.2 -0.4 9.1 -0.5 -2.2 7.5 25.0 3.1 2.59 0.11 1.86 3.68 0.41 0.05 0.67 2.2 4.7 2.1 2.1 3.4 11.7 1.1 0 3 0 -1 2 11 4 Bias (%)
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Table 14.5 CRM Assay Results VMS Zinc Standard Count Expected Value (Au g/t) Average Value (Au g/t) Coefficient of Variation (%) Hadal Awatib East PGO Compass GBM308-13 GBM308-14 PGO Compass GBM308-13 GBM308-14 33 35 50 66 31 20 52 41 1.60 0.56 0.96 1.90 Hassai South 1.60 0.56 0.96 1.90 1.68 0.56 094 1.83 3.1 3.6 1.6 2.5 5.0 0 -2.1 -3.7 1.61 0.55 0.93 1.83 2.2 1.9 2.0 2.4 1 -1 -3 -4 Bias (%)
14.2.3
Duplicates
Pulps duplicates were submitted to Intertek, either blindly (Kamoeb 2008, Tailings), or on carefully selected mineralised intervals. All cross-plot show acceptable dispersion around the X=Y line. 14.2.4 Conclusions
Systematic quality control is a recent feature of exploration work at Hassai. However, it applies to the bulk of samples supporting remaining resources. Earlier drilling campaigns were supported from time to time by small sets of samples (usually about 30 samples) sent to an external laboratory for a cross-validation, and a conservative bias was identified in earlier gold analyses from the mine laboratory. The recent quality control procedure is considered acceptable, but has a few weaknesses: Duplicates are organised by the external laboratory No quality control follow-up has been set-up, allowing AMC to react in case of a fatal flaw Field/Coarse duplicates should be included Standards and blanks are 50 g sachets and tubes intercalated in 2 to 5 kg rock samples and are easily spotted No coarse blanks have been sent that would help monitor the sample preparation quality.
Recent quality control data indicates that the latest exploration results which provide the majority of the database for remaining base metal and gold resources are of acceptable quality for resource estimation for NI 43-101 purposes at this level of confidence.
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14.3
KAMOEB TWIN HOLES
In 2008, a number of twin holes were completed to check diamond drill and cyanidable leach assay against RC drill and fire assay on a key area in the southeastern corner of Kamoeb. A number of statistical comparisons were completed, from which it appeared that diamond core cyanidable gold was some 7% to 8% higher grade than RC with fire assay. This is in contrast to previous studies that indicated cyanidable gold undercalled fire assay gold by 5% to 10%. 14.4 GEOLOGICAL DATA
Geological data was recorded by a team of field and senior geologists employed by AMC. The geological data was collected manually at the drilling stage, then transferred to an Excel spreadsheet by a dedicated junior geologist. No independent systematic check of the quality of geological data has been made. 14.5 SURVEY DATA
Collar survey data has been collected by qualified AMC mine surveyors. The collars coordinates were then transferred to an Excel spreadsheet and passed to the project geologist. Collar plots have been reviewed by AMC geologists and are believed to accurately represent drill hole locations. Down-hole survey data was examined for consistency, but no other quality control has been undertaken. A digital elevation model (DEM) was developed for each deposit by the AMC survey team using Leica DGPS and Total station methods, at different period of time, as the deposit were mined. Minor issues were noted and corrected when necessary. Extra care was given to the tailings where the DEM is a critical element to the volume estimate. All collars are consistent with the DEM, except when the deposit has been partially mined out. 14.6 DENSITY DATA
No density quality control has been undertaken. 14.7 14.7.1 DATABASE VERIFICATION Database Consistency Internal Review
Data is loaded into Surpac Vision. Routine checks undertaken in Surpac showed only minor issues that were addressed, as follows: Depth consistency between collar and logs Sample overlap Survey consistency with the drill hole depth Out of bound assays.
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The following errors were noted: A few maximum depth errors (discrepancy between geological and assay log and collar or survey maximum depth) that are easily corrected. Overlapping sample errors existed for some duplicate samples. On occasions, diorite and schist are shown as mineralised, which suggest that there were errors in the geological log, either during logging or during the data entry. In Hadal Awatib East, after the independent data validation, it appeared that AMC had relogged the geology, but that geological logs had not been updated in the database. Historical core recovery is often missing. Some drill holes have collar survey information but no assay data. This was found to be due to no visible signs of mineralisation, and thus no samples were submitted for analysis. A number of holes without lithological logs. These holes are largely from the oxide zone within mined-out pits, and are of minor importance with respect to remaining resources.
It was noted that a small number of assay laboratory reports contained transcription errors, that could originate either from the laboratory or when creating sample submission sheets. These errors are minor and easily corrected. Collars were checked against the topography and are consistent. The lithological codes contain numerous typographic errors that are easily corrected. Two drill holes (Hadal Awatib_D160 and HASS_D230) had values inconsistent with adjacent readings or adjacent drill holes and indicate probable measurement errors. The massive sulphide interval in Hadal Awatib_D160 has not been used for wireframing, but its assays have been manually added into the sample-set used for statistics and interpolation. The error value in the lower part of HASS_D230 has been disregarded. 14.7.2 External Independent Data Validation
In Hassai South and Hadal Awatib East, data were independently validated by a senior geologist from Arethuse, in order to verify the database compared to the original data. A proportion of the original data were scanned by AMC and provided to Arethuse, along with the database. Approximately 25% of all drill hole intercepts into massive sulphides were checked against the field logs and the laboratory data sheets. Verification of mineralised zones compared to core-box photos was not included in the scope. Errors were classified as: Minor: minor typos in depth, or in numerical values. Major: important numeric error, missing lines, etc. with no determinant error on the mineralised intervals. Critical: Major error on a mineralised interval.
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Criteria of success are as follow: Above 5% of errors, the entire database should be re-verified and corrected Between 2 and 5% errors, Phase B is repeated Below 2% error, the database is considered internally validated.
Hassai South The validation review demonstrated an overall error rate of below 2%. No critical errors were identified. A moderate number of errors were identified, both minor and major, but these were: Dominantly lithological errors Largely related to pre-2005 drilling, and thus representing a small part of the data used for estimation of massive sulphide resources and unmined gold resources. In this regard, over 90% of the sulphide resources are based on 2008/09 drilling, while Indicated oxide resources are derived largely from 2005/06 work, which contains few errors.
Hadal Awatib East The number of errors was too large to completely validate the database, comprising: Lithological reporting errors (2008-09 drill holes): these are not critical, and present only approximations. The approximation is of smaller order of magnitude compared to the broad geological model used for the resource estimate. The historical assay database (prior to 2002 drill holes) present numerous significant imprecisions in depth reporting. Intertek assay database (2008-09 drill holes) is valid.
Although formally not validated, the Hadal Awatib East drill hole data-set can be used for the 2009 definition of indicated and inferred resources as per NI 43-101, as: A major error-free set of data is not demonstrated, but major fatal flaws for resource definition are unlikely Imprecision in resource definition due to the drill holes database errors is likely to have happened, but will concern mostly the inferred resources or already mined-out material The consistent set of data acquired in 2008-09 can be validated despite the database status. Indicated sulphide resources have been estimated using this part of the data-set.
Considering that: Indicated sulphide resources have been estimated using mostly 2008-09 data (715 samples out of 730 samples 98%) Indicated oxide resources are based on historical drill holes 2005-06 Inferred oxide resources are based on historical drill holes prior to 2000 Inferred sulphide resources are base on 2213 samples, of which: 8.7% (192 samples) are from drilling pre-2000
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0.9% (21 samples) are from 2005-06 drilling 90.4% (2000 samples) are from 2008-09 drilling.
It is the relevant QPs opinion that no major or critical errors are likely to significantly affect the materiality of the resources as they have been classified: mostly inferred and partially indicated. Indicated resources have been estimated with 2008-09 data that has the higher degree of confidence. Kamoeb The database was initially not fully set-up, and it appeared to be necessary to rebuild it from existing data. The author verified every drill hole and corrected the database from the original data: filed logs, manual cross-sections, laboratory datasheet, etc. The relevant QP was involved in the making of the database, and could not review it independently. Still, a number of tests, similar to those one undertaken for Hassai South and Hadal Awatib East were carried out to resolve any potential flaw, with acceptable results. It is the QPs opinion that, no major or critical errors are likely to significantly affect the materiality of the resources as they have been classified. 14.7.3 Independent Sampling and Analysis (Gold Only)
In 2007, Geostat visited site and undertook independent sampling and analysis of 40 samples, including 25 grade control drilling duplicates (rifle splits), 4 stockpile samples, 4 heap leach residue samples, and 7 grab samples of gold mineralisation in open pits. Samples were analysed for cyanidable gold at the AMC laboratory, and at SGS Lakefield, Ontario using an equivalent method as well as by 30 g fire assay. One sample pair was rejected prior to assessment, since the two results bore no relationship to each other (Mine Lab = 0.4 g/t, SGS = 24.2 g/t). Statistical analysis of the remaining duplicate data showed no notable difference between the two laboratories. 14.8 14.8.1 AUGER PROGRAM DATA VERIFICATION Drill Logs and Sampling Information
Validation of the 2007 electronic database by the author initially identified numerous errors. Consequently, all data was checked against original hard copies and all problems were corrected. A final validation was then undertaken by the senior geologist in charge of exploration at Hassai. Checks included assay and collar survey data. The 2009 master spreadsheet displayed no obvious logical errors. A brief verification against original hard copies of field logs confirmed the database information. Seven errors in sample sequencing were readily identified and corrected at this time. The author considers the auger drill hole database to be in good order and suitable for use in resource estimation to meet NI 43-101 standards.
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14.8.2
Assay Data Quality
In 2007, for each batch of 30 drill samples quality control samples were added, comprising two gold CRM standards, one blank and three duplicates. In general, results for the standards were acceptable, with occasional anomalies related to incorrect standard numbering. A small number of blank samples returned values greater than 0.1 g/t, indicating possible contamination. Three batches of results from heaps B and C were eliminated from the resource database on this basis. 100 coarse split duplicates were analysed independently at Amdel, Perth, using fire assay with ICP finish method. The results show close agreement with the Intertek results across the full range of values. 138 sample pulps were sent to SGS, Balikpapan for inter-laboratory confirmation using 30 g fire assays. Correlation of the two datasets is very good, again confirming the quality of data from Intertek. 89 pulp duplicates were sent separately to Intertek to evaluate assay reproducibility. Very good agreement was noted with one exception, which is probably a sample identification error. Precision is approximately 5% at the 90% confidence level, which is well up to industry standard.
In 2009, the same QAQC sample protocol was adopted, but applied to batches of 50 samples. Results for standards fell within expected limits with the exception of two results (out of 89) which were clearly due to swapping of reference samples. Results for the remainder display low COVs indicative of good laboratory performance. Blank samples were slightly mineralised; being dune sands collected distant from the mine, it is thought that the results reflect low-level contamination in the site preparation area or at Interteks laboratory. However, the average value is 0.03 g/t, with a maximum <0.1 g/t, which is considered minor with reference to the resource grade. Sample preparation duplicates show good agreement with originals. between the two datasets. Auger Samples Conclusions No bias was observed
14.8.3
While a number of issues arose concerning the 2007 drilling database, these have been resolved by careful cross-checking and revalidation. Care was taken to avoid such issues in the 2009 program. QC samples introduced with the 2007 assay program identified some problems related to incorrect identification of CRMs. Interlaboratory check analyses have confirmed the reliability of the Intertek results. Minor contamination was identified in analyses of blank samples. Three batches of sample results accompanying highly anomalous blanks have been rejected from the resource database as a precaution. The final dataset is considered reliable for resource estimation purposes.
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15.
ADJACENT PROPERTIES
There are no adjacent properties relevant to this report.
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16. 16.1 16.1.1
MINERAL PROCESSING AND METALLURGICAL TESTING HEAP LEACH TESTWORK Heap Leach Testwork
During heap leach processing, AMC has conducted permanent column tests to check, confirm and adapt its plant parameters to the specificity of the different ores processed. This section does not show any results from the actual heap leach operation at Hassa nor the testwork conducted to design this operation, but only the day-to-day tests undertaken to control and predict the performance of the plant. The parameters of the current heap leach operation are given in Section 20.3. The purpose of a column leach test is not so much to duplicate in a laboratory test the results that can be expected from a commercial heap leaching operation, but to collect kinetic and reagent consumptions information on the ore being evaluated so that scale-up equations can be validated. This will allow the projection of the commercial heap leach operation's performance under different operating scenarios. With regards to AMC experience, it is usually not necessary to run more than three column leach tests on each ore type of a particular deposit to validate a kinetic model. It is then to be adapted to the mine plan to ensure the best prediction of the parameters. 16.1.1.1 Predictive Tests on Core Samples
Exploration group provides a series of samples representing the deposit. These core samples are divided into 10 m intervals regardless of the grade. The laboratory then prepares two composites by level and crushes the samples down to 12.5 mm (d100), as this is the size of the crusher final product. A fraction of the crushed sample is then used to determine head grade of Au, Ag and Cu, and pH to look for the presence of acidgenerating elements. The rest of the crushed sample is submitted to size analysis on a sieve set of 12.5 mm, 10 mm, 8 mm, 5 mm, 2 mm and 1 mm. Each split is then analysed for gold content to be able to run a recovery by particle size analysis after leaching. Thereafter, 30 kg of material is agglomerated, cured and placed in a 2 m high by 200 mm diameter Plexiglas column. The columns are irrigated at a specific flowrate of 16 L/m/h using a 0.3 g/L cyanide solution at a pH of 10.5. A goal of 1.5 m3/t is set as the final solution to solid target. After leaching, the residue sample is dried and analysed for gold by particle size. A metallurgical and mass balance is carried out to calculate: Gold recovered by both solution and solid balances Cyanide consumption Lime and cement consumptions Compaction.
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From its experience, AMC has been able to establish that laboratory columns always perform faster than field heaps, for two major reasons: The ore is placed in the columns in a more uniform way resulting in a better percolation through the heap. The solution to ore solid ratio (tonnes of solution per tonne of ore) is generally higher in laboratory columns than in field heap.
Therefore, a correction factor (0.9) is used to forecast operational recovery. The other data are used to predict the reagent consumptions, the compaction of the heap and the need for pH modifier as lime to be used in the industrial heap leach operation. By testing the different ore types of the deposit, the metallurgist is then able to forecast the performance of the heap leach operation, which is still to be confirmed by tests on material stacked on the heaps. 16.1.1.2 Tests on Stacked Ore
Samples are collected at the automatic sampler prior to the stacking operation in order to prepare representative composites of the ore processed. When the composite is formed, column tests are performed in the same manner as presented before. The metallurgist can then predict with more accuracy the real performance of the leaching operation as he has now a representative composite of the ore processed. The corrected recovery of these column tests is then the target to be achieved by the operation. 16.2 16.2.1 CIL TESTWORK Quartz Ore (Kamoeb South Deposit)
A total of 750 kg of quartz ore samples from the Kamoeb deposit was received for testing purposes. This was combined to form a Quartz Composite for the testing regime. 16.2.1.1 Comminution Parameters
Testing was undertaken to determine the following comminution parameters for the Quartz Composite: Bond Ball Mill Work Index (BBWi) at a closing screen size of 106 m Bond Rod Mill Work index (BRWi) Bond Abrasion Index (Ai) Bond Crushing Work Index (BCWi) Uniaxial Compressive Strength Tests (UCS) SAG milling parameters (SAG Mill Comminution (SMC)) Tests.
Results of the testing are summarised in Table 16.1.
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Table 16.1 Quartz Ore Comminution Parameters Parameter BBWi BRWi Ai BCWi UCS SG Dwi Mia A b Axb kWh/t Unit kWh/t kWh/t g kWh/t MPa Result 14.2 13.0 0.4460 20.9 99.3 2.42 3.7 13.4 58.9 1.12 66.0
Analysis of the comminution results characterise the Quartz ore as being: Of medium hardness with respect to ball and rod milling applications Moderately to highly abrasive Strong with respect to crushing applications Soft for the purposes of SAG milling. Ore Characterisation
16.2.1.2
Head assay analysis was conducted on the Quartz Composite sample with a summary of the results being presented in Table 16.2. The head assay results shows that the Quartz ore contains gold grades which may be suited to CIP/CIL circuit leaching. The preg-robbing potential of the ore looks to be low and the potential for copper interference appears to be minimal. The mercury levels suggest that it may be necessary to provide capture equipment within the gold room facilities, and it will be necessary in subsequent testing to analyse for mercury in leach products and tailings. 16.2.1.3 Mineralogy
Optical mineralogical analysis was undertaken to determine the gold occurrences within the Quartz ore. A sample was sized over a 100 m sieve, with both the retained and passing size fractions subsequently being subjected to heavy liquid separation. Optical examination was then performed on each of the sinks fractions. A total of 10 gold occurrences were detected in the coarse sinks material, primarily associated with goethite, with two occurrences being aggregates of fine, low silver gold. In the fine sinks material, eight occurrences were detected, five of these being liberated gold particles with the remainder being associated with goethite.
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The results showed that the gold occurs in Quartz ore as fine-grained material which is either predominantly liberated or associated with goethite.
Table 16.2 Element Ag ANC As Au Bi Ca CO2 Cu Cu (CN Sol) Hg Mg Ni Pb Pd Pt S S
2-
Quartz Composite Head Assay Assay 2.0 <0.5 6 4.29 1.0 0.21 <0.1 70 12 1.09 0.75 25 120 <10 <10 0.04 0.02 1.0 40.2 7.0 0.05 0.05 45
Unit ppm kg H2SO4/t ppm ppm ppm % % ppm ppm ppm % ppm ppm ppb ppb % % ppm % ppm % % %
Sb Si Te Total C Total Organic C Zn
16.2.1.4
Gravity Separation
The response of the Quartz ore to gravity recovery techniques was assessed by treating a 30 kg subsample of the ore through a laboratory Knelson concentrator and subjecting both the obtained concentrate and gravity tailings stream to cyanide leaching. The feed, concentrate and tailings streams produced were then analysed for both gold and silver grades. A summary of the results is given in Table 16.3. The results of gravity testing indicated that around one-quarter of the gold present in the Quartz ore would be amenable to gravity separation techniques for the recovery of gold, though not for the recovery of silver. While the gold recovery value appears to be attractive, the mass recovery achieved in the testing is still around 10 times higher than what would be achieved in an operating plant and therefore would have a high probability of over-stating the true recovery. Based on previous experience, the result is at the low end of what would be considered viable for further investigation.
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Results of the tailings leaching suggest a good recovery will be achieved without the use of a gravity circuit, and thus it is recommended that a gravity circuit is not included in future Hassa flowsheets.
Table 16.3 Gravity Separation Results Summary Composite Au Concentrate Au Concentrate Quartz 0.25 414 24.1 97.4 Tailings Tailings 3.33 75.9 93.0 Total Recovery Ag Concentrate Ag Total Recovery Concentrate 94.1 0.25 20 3.7 86.9 Tailings Tailings 1.49 96.3 32.8 Total Recovery Total Recovery 34.8
16.2.1.5
Grind Sensitivity
Samples of the Quartz Composite were processed in a cyanide leach to determine the influence of grind size on precious metal recovery. A total of three grind sizes were tested, these being P80 212 m, 150 m and 106 m, with each ground sample being leached in 1000 ppm NaCN with >15 ppm oxygen in solution. Table 16.4 summarises the results obtained from testing.
Table 16.4 Quartz Ore Grind vs Leach Recovery Results Gold Grind P80 (m) Residue Grade (g/t) 212 150 106 0.30 0.23 0.22 4.52 4.61 4.40 Head Grade Recovery (%) 93.4 95.0 95.1 Residue Grade (g/t) 1.00 1.00 1.00 1.69 1.73 1.75 Silver Head Grade Recovery (%) 41.0 42.3 43.9
The results of the testing indicated that recovery was independent of grind size at a grind of 150 m and below. All further testing with the Quartz ore was subsequently undertaken at a 150 m grind. 16.2.1.6 Oxygen vs Air Sparging in Leach
Two samples of the Quartz Composite were leached over 48 hours in a 1000 ppm cyanide solution to assess the effect of air sparging compared to oxygen sparing. The results in Table 16.5 demonstrate
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that air sparging produced essentially the same recovery result when compared to oxygen. It was recommended that all further tests be undertaken with air sparging.
Table 16.5 Air vs Oxygen Sparging Leach Summary Quartz Ore Gold Gas Sparged Residue Grade (g/t) Oxygen Air 0.23 0.25 4.61 4.95 Head Grade Recovery (%) 95.0 94.9 Residue Grade (g/t) 1.00 1.00 1.73 1.86 Silver Head Grade Recovery (%) 42.3 46.1
16.2.1.7
Leach Cyanide Sensitivity
The influence of cyanide concentration in the leach was investigated by targeting 250 ppm, 500 ppm and 750 ppm cyanide concentrations over a 48 hour leach. The results shown in Table 16.6 indicate that good gold recoveries can be achieved with low cyanide levels being maintained in the leach conditions.
Table 16.6 Quartz Ore Leach Cyanide Sensitivity Gold NaCN Concentration (ppm) 250 500 750 Residue Grade (g/t) 0.32 0.33 0.27 4.64 4.67 4.30 Head Grade Recovery (%) 93.1 92.9 93.7 Residue Grade (g/t) 1.00 1.00 1.00 1.79 1.78 1.73 Silver Head Grade Recovery (%) 44.2 43.9 42.1
16.2.1.8
Quartz Ore Reagent Consumption
A review of the leaching test results was undertaken to estimate the reagent consumptions for the quartz ore to be utilised in the processing plant engineering design. Due to the rapid leach dissolution achieved in testing, 24 hour reagent consumptions were chosen as the basis for plant design. For the Quartz ore, the following reagent consumptions were estimated: NaCN, 1.45 kg/t. Quicklime, 0.32 kg/t.
The above results were from an average of six leaching tests. 16.2.2 Heap Leach Residue
A total of 118 individual heap leach residue samples were provided for testing, of which 1/6 were combined to form a Heap Leach Bulk Composite to be used for metallurgical testing.
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16.2.2.1
Comminution Parameters
The particle sizing of the heap leach material is anticipated to be F100 8.0 mm and, as such, the most likely processing route would involve ball milling prior to leaching. As a result, only the BBWi parameter was determined during the laboratory testing regime. The value for BBWi was determined to be 12.0 kWh/t, indicating that it would be classed as a moderate to soft ore for ball milling purposes. 16.2.2.2 Ore Characterisation
Head assay analysis was conducted on the Heap Leach Bulk Composite sample with a summary of the results being presented in Table 16.7.
Table 16.7 Element Ag ANC As Au Bi Ca CO2 Cu Cu (CN Sol) Hg Mg Ni Pb Pd Pt S S
2-
Heap Leach Bulk Composite Assay Assay 13.0 7.1 220 2.15 14.0 0.59 0.1 365 40 13.8 0.16 0.009 888 15 10 2.88 1.21 25.8 33.0 27.2 0.04 0.02 150
Unit ppm kg H2SO4/t ppm ppm ppm % % ppm ppm ppm % ppm ppm ppb ppb % % ppm % ppm % % %
Sb Si Te Total C Total Organic C Zn
The head assay results show that significant levels of both gold and silver remain in the heap leach tailings. There also appears to be higher levels of copper than in the Quartz ore, which may need further consideration. Of note, the levels of both arsenic and mercury are significantly higher than for the Quartz Ore and will need to be studied further in future testing. As with the Quartz ore, these
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mercury levels suggest that it may be necessary to provide capture equipment within the gold room facilities. 16.2.2.3 Mineralogy
Optical mineralogical analysis was undertaken to determine the gold occurrences within the Heap Leach Bulk Composite. A sample was sized over a 100 m sieve with both the retained and passing size fractions subsequently being subjected to heavy liquid separation. Optical examination was then performed on each of the sinks fractions. The analysis found no optically detectable occurrences of gold in either the coarse or fine sinks fractions. This suggests that the gold is present as very fine particles, and that gravity recovery techniques would be ineffective on heap leach material. 16.2.2.4 Gravity Separation
The response of the Heap Leach Bulk Composite to gravity recovery techniques was assessed by treating a 30 kg sub-sample of the ore through a laboratory Knelson concentrator and subjecting both the obtained concentrate and gravity tailings stream to cyanide leaching. The feed, concentrate and tailings streams produced were then analysed for both gold and silver grades. A summary of the results is given in Table 16.8.
Table 16.8 Heap Leach Bulk Composite Gravity Separation Results Summary Composite Au Concentrate Mass Pull Head Grade Distribution Leach Recovery Tailings Head Grade Distribution Leach Recovery Total Recovery Ag Concentrate Mass Pull Head Grade Distribution Leach Recovery Tailings Head Grade Distribution Leach Recovery Total Recovery % g/t % % g/t % % % % g/t % % g/t % % % Heap Leach 0.38 18.2 4.1 94.5 1.72 95.9 37.5 39.8 0.38 14.7 1.0 64.7 8.30 99.0 51.8 51.9
The results from Table 16.8 show that the gravity recovery from the Heap Leach Bulk Composite was poor, confirming the observations made in the mineralogical examination. As with the quartz ore testing, the mass pull achieved around 10 times higher than what would be achieved in an operating
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plant and therefore would be overstating the true recovery further. It is recommended that no further consideration be given for gravity circuit recovery from the heap leach material. 16.2.2.5 Grind Sensitivity
Samples of the Heap Leach Bulk Composite were processed in a cyanide leach to determine the influence of grind size upon precious metal recovery. A total of four grind sizes were tested, these being P80 150 m, 106 m, 75 m and 53 m, with each ground sample being leached in 1000 ppm NaCN with >15 ppm oxygen in solution. Table 16.9 summarises the results obtained from testing.
Table 16.9 Heap Leach Grind vs Leach Recovery Results Gold Grind P80 (m) Residue Grade (g/t) 150 106 75 53 0.95 0.81 0.77 0.61 1.90 1.96 2.03 2.01 Head Grade Recovery (%) 50.0 58.6 62.0 69.7 Residue Grade (g/t) 8.00 8.00 7.00 7.00 12.24 12.70 11.70 12.10 Silver Head Grade Recovery (%) 34.6 36.9 39.9 42.0
The results indicated a definite improvement in both gold and silver extraction with finer grind. Economic analysis was performed to determine the optimal grind size, based upon the following assumptions: BBWi of 12.0 kWh/t Gold price of $650/oz Power cost of $100/MWh Capital cost of $1.2 M/MW installed grinding power A discount rate of 12.0%.
The results of the net present value (NPV) determination are given graphically in Figure 16.1 and demonstrate that the overall economics favoured the finer grind; it is possible that grinds finer than 53 m may have merit. It is recommended that this analysis be reviewed during any subsequent feasibility study. 16.2.2.6 Influence of Lead Nitrate
Comparative leach tests were undertaken to study the influence of lead nitrate upon leach recovery. This was trialled at two grind sizes (P80 75 m and P80 53 m) and with both air and oxygen addition. The results, presented in Table 16.10, indicated that the addition of lead nitrate did not appear to significantly change the leach recovery obtained.
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Figure 16.1 Heap Leach Grind Size NPV Trend
60,000 50,000 40,000 30,000 20,000 10,000 0

50 70 90 110 Grindsize ( m) 130 150 170
NPV ('000 USD)
Table 16.10 Lead Nitrate Addition (mL) 15 75 150 15 75 150 Lead Nitrate Addition Results Gold Residue Grade (g/t) 0.49 0.46 0.68 0.73 0.72 0.66 1.80 1.71 1.97 2.04 2.08 1.96 Head Grade Recovery (%) 72.8 73.1 65.5 64.3 65.3 66.3 Residue Grade (g/t) 7.00 8.00 7.00 7.50 8.25 7.50 11.9 12.9 11.7 12.5 13.4 12.7 Silver Head Grade Recovery (%) 41.2 37.8 40.3 40.0 38.4 40.8
Grind P80 (m) 75 75 75 53 53 53
Gas Sparged Air Air Air Oxygen Oxygen Oxygen
16.2.2.7
Influence of Pre-Aeration
Pre-aeration was investigated on two tests to determine if this improved metal extraction in a cyanide leach. Pre-aeration times of 2 hours and 4 hours were trialled, followed by a 24 hour leach. The results in Table 16.11 indicate that pre-aeration had no appreciable influence upon the leach performance on heap leach material.
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Table 16.11 Pre-Aeration Testing Results Gold Pre-aeration Time (hours) 2 4 Residue Grade (g/t) 0.74 0.71 2.04 2.02 Head Grade Recovery (%) 63.9 65.0 Residue Grade (g/t) 7.50 8.00 12.4 13.1 Silver Head Grade Recovery (%) 39.3 38.9
16.2.2.8
Heap Leach Variability Leaching Tests
Twelve heap leach variability tests were conducted on selected individual samples of the heap leach material. Each test was conducted at a grind of P80 53 m, oxygen sparged, at a cyanide level of 1000 ppm over 48 hours. The results are presented in Table 16.12.
Table 16.12 Heap Leach Variability Testing Results Gold Heap Leach Sample Number 6139 6351 6487 6556 6742 6782 6856 6993 7492 7632 7696 7706 Residue Grade (g/t) 0.40 0.32 0.61 0.78 1.17 0.55 0.50 0.54 0.65 0.76 1.55 0.99 1.07 0.95 1.62 3.03 5.00 2.38 6.81 2.35 1.23 2.18 2.83 1.74 Head Grade Recovery (%) 62.6 66.3 62.4 74.3 76.6 76.9 92.7 77.2 46.9 65.1 45.2 43.0 Residue Grade (g/t) 5.50 2.50 20.5 6.25 4.50 3.00 5.00 3.00 4.00 11.5 4.50 5.50 13.15 9.08 26.3 8.41 6.31 4.40 6.39 4.70 5.16 19.8 6.71 8.05 Silver Head Grade Recovery (%) 58.2 72.5 21.9 25.7 28.7 31.8 92.2 36.0 22.4 41.8 32.9 31.7
Results of the variability testing gave a range of gold recoveries between 43.0% and 92.7%, averaging 65.8%, being similar to that of the Heap Leach Bulk Composite. Examination of the leach profiles demonstrate rapid dissolution of both gold and silver, with almost all being achieved in the first two hours, suggesting that shorter leach residence times could be utilised in the final flowsheet design. 16.2.2.9 Heap Leach Residue Reagent Consumption
A review of the leaching test results was undertaken to estimate the reagent consumptions for the Heap Leach Residue to be utilised in the processing plant engineering design. As with the Quartz Ore, leaching dissolution was seen to be rapid and as such, the 24 hour reagent consumptions were chosen as the basis for plant design. For the Heap Leach Residue, the following reagent consumptions were estimated:
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NaCN, 1.38 kg/t. Quicklime, 0.90 kg/t.
The above results were from an arithmetic average of 18 leaching tests comprising both the composite and variability samples. 16.2.3 Metallurgical Gold Recovery for the CIL Economic Model (Includes Operating Cost Adjustments for Acidic SBR Material)
Metallurgical gold recoveries for mining inventory material are defined for the economic model. In most cases these are based on metallurgical testwork, but some mining inventory categories did not have metallurgical testwork conducted to allow more accurate estimation of gold recoveries in a CIL Processing facility. These gold recoveries were then estimated based on previous Heap Leach results and CIL testwork. These methods used and results are discussed as follows: Kamoeb Quartz Material Metallurgical testwork on Kamoeb Quartz ore stockpiles gave a gold recovery of 92.9%. For the purposes of the economic model, 93% gold recovery was used. Further metallurgical testwork is recommended to confirm this recovery for the expanded Kamoeb mining inventory. Heap Leach Residue (Not Sampled) The mining inventory for Heap Leach Residue fell into to three categories: Heap Residue sampled and tested supported by fire assays Heap Residue already placed but not sampled or tested. Cyanide soluble assay data and metal balances are available, but cyanide soluble grade underestimates total gold content Heap Residue not-yet-placed, ie. material identified for heap leaching before 2013, with predicted grades based on cyanide soluble assays and metal balance.
Relative quantities of each material type are indicated in Table 16.13

Table 16.13 Breakdown of Heap Leach Mining Inventory Resources Material Category 1 1 2 2 3 Total Resource Estimate Pre-2008 Pre-2008 2008/09 2008/09 2010 Resource Classification M+I Inferred M+I Inferred Inferred Assay Method Fire Assay Fire Assay CN Soluble CN Soluble CN Soluble Tonnage (t) 6 703 000 1 178 000 488 000 1 329 000 2 550 000 12 248 000 Grade Au (g/t) 1.9 2.1 0.9 1.4 0.9 1.6 Recovery (%) 65 65 88 88 88 70 Metal (kg) 8 338 1 582 382 1 662 1 949 13 914
For category #1 above, gold recoveries were based on metallurgical testwork, which indicated average recovery of 66%. For the purposes of economic modelling 65% gold recovery has been used.
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For categories 2 and 3 above, the gold recovery is based on the metallurgical testwork for Category #1, but adjusted to compensate for gold not accounted for in the cyanide soluble assay method. For the testwork on samples for category #1 inventory, it was found that the cyanide soluble assay method accounted for only 74% of the gold in the samples used for the metallurgical testwork composite sample. Therefore the gold recovered from the metallurgical testwork represented a higher component of the cyanide soluble head grade than the fire assay head grade used for the economic modelling. To adjust for this difference, the gold recovery for fire assay (category #1) material was adjusted by 1/0.74 to reflect the expected recovery from the cyanide soluble gold component of the material. As a result the CIL gold recoveries for the Categories differ: Category #1: Gold recovery is 65% of Fire assay gold Category #2: Gold recovery is 88% of cyanide soluble assay gold Category #3: Gold recovery is 88% of Cyanide soluble assay gold
For the economic model the weighted average grade and recovery were used to best show how the material will be reclaimed. Further studies are required to confirm the method used for the recoveries. Metallurgical testwork will indicate gold recovery for CIL from feed sources post-2009 to establish an ultimate CIL tail grade and the gold recovery differential, (contribution) of the CIL Plant over the heap leach process. Acidic SBR Material There have been no column leach tests or CIL leach tests on Acidic SBR. However, it represents only a small proportion of the CIL phase mining inventory. Gold recovery was estimated based on results from CIL testwork on the Heap Residue. Heap Residue was originally from SBR material mined in the early years of the project life. The primary difference between SBR and Acidic SBR is the presence of acidic sulfates in the later. It has been shown in heap leach tests that similar recoveries to SBR can be achieved with Acidic SBR if the ore is washed first to remove acidic compounds. The non-washable Acidic SBR that forms a part of the CIL Plant feed inventory in the economic model in this report, is highly sulfated to the point that the material is difficult to wash. However, this highly sulfated (oxidised) state also means that gold locked the original sulfides may be more readily available to cyanidation. CIL processing alleviates the washing issue. It is planned to feed the Acidic SBR as a small component of the plant feed to minimise any detrimental effects of the fine sulfates on plant control. 16.2.3.1 Gold Recovery from Acidic SBR material
Based on CIL tail grades and original mined grades that averaged 12.5 gAu/t for SBR material, (adjusted to reflect fire assay gold for the years up to 2007) CIL Gold recovery for the original material is expected to be 94.4%, given a CIL test tail grade of 0.70 g/t Au. The gold recovery for Acidic SBR was reduced to 92% for the economic model to compensate for potential sulfide gold. The CIL Plant is expected to recover 95% of the gold from other SBR material. Both of these assumptions will require confirmation by future testwork.
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16.2.3.2
Operating Cost for the Acidic SBR
Acidic SBR consumes substantially more lime than Oxide SBR. It also consumes more Cyanide due to an elevated soluble copper content. Previous heap leaching of washable Acidic SBR had lime consumption of 10 kg/t of ore and Cyanide consumption of 2.5 kg per tonne of ore. It is expected that non-washable SBR is as acidic so the same reagent consumptions are used. Table 16.14 shows the typical lime and cyanide consumptions for heap leach residue (from testwork), and the associated assumptions for Acidic SBR material.
Table 16.14 Reagent Consumption and Costs for Heap Leach and Acidic SBR Material Heap Leach Residue Reagent Lime NaCN Total Consumption (kg/t) 0.9 1.38 Price ($/kg) 0.27 2.11 Cost ($/t) 0.24 2.91 3.15 Consumption (kg/t) 10.00 2.50 Acidic SBR Price ($/kg) 0.27 2.11 Cost ($/t) 2.65 5.28 7.93
The difference between the two material type reagent consumption costs is $4.78/t of plant feed material. For ease of modelling, an additional $5/t was added to the base operating cost for Acidic SBR plant feed. 16.3 16.3.1 VMS CONCENTRATOR TESTWORK Introduction
A limited metallurgical testwork program was developed and undertaken by SGS Canada Inc. (SGS), using two ore composites. This work included sample preparation, head sample chemical analysis, mineralogical analysis, flotation testing, cyanidation leach testing and product characterisation testwork. Testwork to date has not included any comminution, thickening, or filtration work. Equipment sizing in these areas is, therefore, based on assumed parameters and AMECs experience from other projects. 16.3.2 Sample Selection
Three composites were prepared from the samples received: Composite 1 HASS-D207 Composite 2 HASS-D214A Composite 3 HASS-D221 From Hassai South supergene zone From Hassai South Primary zone From Hassai South Primary zone
Testwork was performed on Composites 1 and 3 only. A sub-sample from each of the three composites was submitted for head assay analyses, with results presented in Table 16.15.
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Table 16.15 Head Sample Chemical Analysis Results Element Cu Au Pb Zn S S

=
Unit % g/t % % % %
Composite 1 7.62 7.44 0.080 1.13 40.0 38.1
Composite 3 1.91 1.94 0.032 0.56 43.0 39.8
Additionally, a sub-sample at a grind size of 80% passing 100 m of Composite 1 and Composite 3 was submitted for high-definition QEMSCAN mineralogical characterisation, with results as shown in Table 16.16.
Table 16.16 Head Sample Mineral Distribution (% Mass) Mineral Pyrite Pyrrhotite Chalcopyrite 2 Cu Sulphides Other Cu Minerals Sphalerite Other Zn Minerals Galena Molybdenite Arsenopyrite Other Sulphides Silicates Mg-Chlorite Oxides Carbonates Sulphates Apatite Others Total Composite 1 55.4 0.1 22.8 0.6 0.0 1.8 0.0 0.1 0.0 0.0 0.0 16.1 0.3 0.7 2.2 0.0 100.0 Composite 3 80.0 0.0 6.2 0.1 0.0 1.2 0.0 0.0 0.0 0.0 0.0 7.0 1.6 0.2 2.8 0.7 0.1 0.0 100.0
Pyrite (55%) and chalcopyrite (23%) are the predominant sulphide minerals in Composite 1, accounting for 78% of the mineral mass. Similarly for Composite 3, pyrite and chalcopyrite account for 80% and 6% of the mineral mass, respectively. Silicates are the most abundant non-sulphide gangue mineral, accounting for 7% of the mineral mass. In Composite 1, 77.5% chalcopyrite is free and liberated, while 18.4% is associated with pyrite. A further 3.2% is either associated with silicates or in complex association. These are unlikely to be recoverable by sulphide flotation.
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In Composite 3, 88% of pyrite is liberated, and approximately 10% associated with chalcopyrite. In addition, 72% chalcopyrite is liberated, while 25% is associated with pyrite. The majority of pyrite (97%) is liberated, and 2% is associated with chalcopyrite. Chalcopyrite liberation is likely to improve with a finer primary grind in both composites as 18-25% of chalcopyrite is associated with pyrite. Due to the high pyrite content of both composites, a primary grind targeting full chalcopyrite liberation may be necessary to improve copper recovery and flotation kinetics. 16.3.3 Flotation Testwork
A total of 13 rougher kinetics and batch cleaner flotation tests were performed on Composite 1 and Composite 3. In addition, a locked cycle test was performed on each of the two composites as per the flow sheet shown in Figure 16.2.
Figure 16.2 Locked Cycle Testwork Flow Sheet
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16.3.3.1
Flotation Kinetic Testwork
Two rougher kinetics flotation tests were performed on Composite 1 and Composite 3. A summary of test conditions and results are shown in Table 16.17.
Table 16.17 Rougher Flotation Kinetic Results Composite Conditions Concentrate Froth Time (min) Comp 1 Test F1 99 m pH=9.5-10.0 37.5 g/t Aero 238 Ro Con 1 Ro Con 1-2 Ro Con 1-3 Ro Con 1-4 Ro Con 1-5 Ro Tail Comp 1 Test F3 69 m pH=10.5 50 g/t Aero 238 Ro Con 1 Ro Con 1-2 Ro Con 1-3 Ro Con 1-4 Ro Con 1-5 Ro Tail Comp 3 Test F2 98 m pH=9.0-10.0 87.5 g/t Aero 238 Ro Con 1 Ro Con 1-2 Ro Con 1-3 Ro Con 1-4 Ro Con 1-5 Ro Tail Comp 3 Test F4 68 m pH=10.5 50 g/t Aero 238 Ro Con 1 Ro Con 1-2 Ro Con 1-3 Ro Con 1-4 Ro Con 1-5 Ro Tail 2 4 7 10 15 4 8 14 20 26 1 3 6 11 15 4 8 14 20 26 Copper Recovery (%) 27.5 46.1 61.8 64.2 71.6 28.4 37.2 62.0 86.8 94.6 97.3 2.7 8.7 16.7 22.2 49.9 68.1 31.9 44.0 76.4 86.7 90.1 90.9 9.1 Gold Recovery (%) 55.2 70.6 78.3 80.4 82.9 17.1 55.6 67.3 75.1 78.8 83.5 16.5 9.0 14.5 17.1 26.4 42.8 57.2 27.8 36.6 42.5 46.9 49.3 50.7
The main conclusions from the testwork are: Composite 1 A cumulative rougher concentrate (Test F3) was produced, grading 15.8% Cu at 97% Cu recovery and 12.1 g/t Au at 84% Au recovery. Rougher concentrate produced in Test F3 had a significantly improved copper grade and recovery when compared to the concentrate produced in Test F1, probably due to improved liberation, as the primary grind size was reduced from 99 m to 69 m. The improved liberation resulted in greater copper selectivity and pyrite depression.
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Mass pull in both tests was high, at approximately 45%. Pyrite recovery was significant at 40-45%. The gold recovery in the cumulative rougher concentrate was similar in both tests at approximately 83%, indicating that variation in primary grinding between a P80 of 99 m to 69 m had a minimal impact on gold recovery.
Composite 3 Test F4 produced the best results overall, with a cumulative rougher concentrate grading 11.5% Cu at 91% Cu recovery and 6.43 g/t Au at 49.3% recovery. Copper and gold recoveries observed in Test F4 were significantly higher than those produced in Test F2, probably due to improved liberation from the primary grind size reduction from P80 of 98 m to 68 m. Mass pull decreased significantly from 26% in Test F2 to 15% in Test F4 with corresponding pyrite recovery of 27% and 11%, respectively. Metal recoveries, specifically gold, into cumulative rougher concentrate were significantly lower for Composite 3 in comparison to Composite 1. Approximately half of the gold reports to the rougher tailings and is likely to be associated with pyrite. Batch Cleaner Testwork
16.3.3.2
To assess the copper and gold grade-recovery relationships, batch cleaner tests were performed for Composite 1 and Composite 3. Various flotation conditions including pH, collector dosage, froth time, regrinding and flotation feed (gravity tailings) were investigated. Composite 1 Results Test F5 investigated modified rougher conditions compared to Test F3. Reduced froth time, lower collector dosage and a higher pH were tested with the objective of reducing pyrite recovery. Although the rougher concentrate in Test F5 recovered only 28% of the pyrite, copper recovery was also reduced to 87%. In addition, excessive stage-recovery losses of 31% and 16% were noted for copper and gold respectively, from the first cleaner to the rougher circuit. This is an indication of insufficient collector addition and froth time. In Test F6, flotation conditions were altered to target greater metal recoveries. Rougher conditions in Test F6 followed those of Test F3. Collector dosage was increased to 40 g/t in the cleanercleaner scavenger circuit and the regrind size was decreased to P80 51 m. The metal recoveries were significantly increased in the rougher and cleaner circuit as a result of these changes.
Table 16.18 summarises the conditions and results for Composite 1.
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Table 16.18 Cleaner Flotation Results for Composite 1 Conditions Concentrate Mass Recovery (%) Test F5 Ro. 68 m, pH=10.0-10.5 40 g/t Aero 238 Froth time 20 min Clean. 30 m, pH= 11.3-11.8 20 g/t Aero 238, Froth time 23 min Test F6 Ro 65 m, pH=10 50 g/t Aero 238 Froth time 26 min Clean. 51 m, pH= 11.0-11.5 40 g/t Aero 238, Froth time 24 min Test F11 Ro 55 m, pH=10.0-10.5 75 g/t Aero 238 Froth time 26 min Clean. 55 m, pH= 11.3-11.8 40 g/t Aero 238, Froth time 20.5 min Test F12 Ro 65 m, pH=10.0-10.5 75 g/t Aero 238 Froth time 21 min Clean. 30 m, pH= 11.3-11.8 45 g/t Aero 238, Froth time 21 min Rougher con 1 cleaner con 2nd cleaner con 3 cleaner con Cleaner scav. con Rougher tail Rougher con 1 cleaner con 2
nd st rd st
Assay Cu (%) 22.9 31.9 33.1 33.4 28.7 1.4 19.4 29.1 30.2 31.0 9.9 0.3 16.1 26.4 27.7 31.1 8.0 0.2 16.9 27.5 29.8 32.5 0.3 Au (g/t) 18.7 32.3 33.4 33.9 9.7 2.2 15.5 22.0 22.5 22.6 6.6 2.1 13.7 20.9 21.6 26.3 7.1 1.8 14.6 22.5 23.7 27.6 2.0
Recovery Cu (%) 86.7 55.4 54.1 52.6 23.5 13.3 97.2 91.4 91.0 90.1 4.3 2.8 98.7 90.6 89.8 69.4 5.9 1.3 98.0 92.9 91.4 75.7 2.0 Au (%) 76.5 60.5 58.9 57.6 8.6 23.5 81.8 72.9 71.5 69.3 3.0 18.2 86.8 73.7 72.0 60.4 5.4 13.2 85.0 76.3 73.2 64.7 15.0
28.0 12.9 12.1 11.7 6.1 72.0 37.9 23.7 22.8 22.0 3.3 62.1 46.3 25.9 24.5 16.8 5.6 53.7 44.0 25.6 23.2 17.7 56.0
cleaner con
3rd cleaner con Cleaner scav. con Rougher tail Rougher con 1st cleaner con 2
nd rd
cleaner con
3 cleaner con Cleaner scav. con Rougher tail Rougher con 1st cleaner con 2nd cleaner con 3 cleaner con Cleaner scav. con Rougher tail
rd
To further investigate the sensitivities of rougher performance to collector dosage, froth time, and pH, Tests F11 and F12 were conducted at increased collector dosage and with varying froth time. The following observations are made: Comparing Tests F11 and F6, the rougher concentrate recorded increased gold recovery at the expense of lower concentrate grade. The additional gold recovered is likely to be embedded within larger pyrite grains. Without liberation, these gold particles are likely to be rejected with the pyrite in the cleaner circuit. In comparing Tests F6, F11 and F12, it was found that increased collector dosage caused excessive pyrite deportment to the rougher concentrate, increasing reliance on the cleaner circuit for concentrate upgrading.
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In addition, at a primary grind size of 65 m, some of the gold recovered in the rougher concentrate is likely to be in the form of fine inclusions embedded within pyrite grains which would be lost in the middling streams in the cleaner circuit, or would be rejected into the cleaner scavenger tailings. Therefore, it is important to optimise the rougher collector dosage, froth time and pulp pH to ensure that the gold-embedded pyrite is directed to the correct stream flow. An alternative option is finer primary grinding which, combined with optimised flotation conditions, could provide better selectivity in the rougher circuit.
Composite 3 Results Tests F7 and F8 investigate the effect of pH. The pulp pH for Test F7 was 10-10.5 and 11.0-11.5 in the rougher and cleaner circuits, respectively. Test F8 was conducted at rougher circuit pH of 10.5 and cleaner circuit pH of 11.3-11.8. The froth time in the cleaner circuit of Test F8 (second and third cleaner) was also shortened. Table 16.19 summarises the conditions and results for Composite 3.
Table 16.19 Cleaner Flotation Results for Composite 3 Conditions Concentrate Mass Recovery (%) Test F7 Ro. 70 m, pH=10.0-10.5 50 g/t Aero 238, Froth time 26 min Clean. 29 m, pH= 11-11.5 40 g/t Aero 238, Froth time 21.5 Test F8 Ro 69 m, pH=10.5 50 g/t Aero 238, Froth time 26 min Clean. 29 m, pH= 11.3-11.8 40 g/t Aero 238, Froth time 19.5 min Test F13 Ro 64 m, pH=10.5 57.5 g/t Aero 238, Froth time 26 min Clean. 64 m, pH= 11.3-11.8 40 g/t Aero 238, Froth time 18 min Rougher con 1 cleaner con 2
nd st
Assay Cu (%) 5.9 13.6 16.4 20.0 0.8 0.1 10.8 19.2 22.1 25.0 1.8 0.1 6.5 10.5 15.8 18.9 1.6 0.2 Au (g/t) 4.3 7.7 8.7 9.8 2.1 1.2 6.0 9.5 10.4 11.2 2.8 1.2 4.2 5.6 7.5 8.4 2.8 1.1
Recovery Cu (%) 95.4 91.7 90.5 88.4 1.2 4.6 93.5 91.1 90.4 89.0 1.1 6.5 93.0 88.5 86.4 85.4 3.4 7.0 Au (%) 59.6 44.5 40.9 37.0 2.8 40.4 50.5 43.5 41.1 38.4 1.6 49.5 58.8 46.2 40.2 37.1 5.9 41.2
30.0 12.4 10.1 8.1 2.9 70.0 16.4 8.9 7.7 6.7 1.1 83.6 27.4 16.0 10.5 8.6 4.1 72.6
cleaner con
3rd cleaner con Cleaner scav. con Rougher tail Rougher con 1 cleaner con 2
nd rd st
cleaner con
3 cleaner con Cleaner scav. con Rougher tail Rougher con 1st cleaner con 2nd cleaner con 3 cleaner con Cleaner scav con Rougher tail
rd
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The main conclusions for this testwork are: In comparison to Test F7, the rougher concentrate of Test F8 had similar copper recovery (93%), but a lower gold recovery of 50%. Mass pull was significantly reduced to 16% and pyrite recovery decreased to 13%. It is likely gold is in the form of fine inclusions embedded within larger pyrite grains, thus the lower gold recovery is associated with the lower pyrite recovery. Consequently, gold recovery was increased from 37% in Test F7 to 48% in Test F8 in the pyrite scavenger concentrate. The third cleaner concentrate produced in Test F8 graded 25.0% Cu at 89% Cu recovery and 11.2 g/t Au at 38% Au recovery. This was a higher grade at similar recoveries to Test F7. The combined effects of higher pulp pH in the rougher and cleaner circuits as well as the shorter froth time in the cleaner circuit are the likely cause.
Flotation conditions in Test F13 were similar to Test F8, but without regrinding. The third cleaner concentrate, grading 18.9% Cu at 85% Cu recovery and 8.4 g/t Au at 37% Au recovery, had lower copper and gold grades as well as lower copper recovery to the final cleaner concentrate compared to Test F8. The lower metal grades found were a result of greater gangue and pyrite recovery, likely related with the extent of liberation. 16.3.3.3 Locked Cycle Testwork
A singled locked cycle test was conducted for each composite. Conditions of the test where similar to Tests F6 and F8 for Composite 1 and 3, respectively. The results are summarised in Table 16.20.
Table 16.20 Locked Cycle Testwork Results Sample Stage Mass Recovery (% Stage) Rougher con Rougher tail 3rd cleaner con Composite 1 3 cleaner tail Clean scav. con Clean scav. tail Overall recovery Rougher con Rougher tail 3 cleaner con Composite 3 3 cleaner tail Clean scav. con Clean scav. tail Overall recovery
rd rd rd
Assay Cu (%) 15 0.9 30.2 14.7 16.2 1.8 11.5 0.3 25.1 2.3 2.3 0.74 Au (g/t) 13.6 2.1 25.1 11.0 7.9 3.4 6.10 1.26 11.6 5.6 3.6 1.7 -
Recovery on Stage % Stage (%) 93.2 6.8 93.2 6.8 73.0 27.0 87.3 88.1 11.9 99.1 0.9 35.9 64.1 84.9 Cu (%) 84.4 15.6 94.2 5.8 34.0 66.0 73.1 45.4 54.6 95.5 4.5 28.4 71.6 38.3
45.4 54.6 86.7 13.3 19.5 80.5 21.3 14.6 85.4 91.1 8.9 15.2 84.8 6.5
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Under the selected conditions for Composite 1, a final cleaner concentrate grading 30.2% Cu and 25.1 g/t Au was achieved at 87% Cu and 73% Au recovery. For Composite 3, final cleaner concentrate grading 25.1% Cu and 11.6 g/t Au was achieved at 85% Cu and 38% Au recovery. Mass pulls in the rougher circuit for both composites were not consistent throughout the locked cycle test, with greater copper losses to the pyrite scavenger circuit when compared to batch test results overall. Copper recovery in the final cleaner concentrate was lower than expected as a result. 16.3.4 Tailings Cyanide Leaching Testwork
The primary purpose of these tests was to approximately determine the potential for gold recovery. Parameters evaluated included leach retention time, feed particle size, and cyanide concentration. Testwork conditions and results are presented in Table 16.21.
Table 16.21 Tailings Cyanide Leach Testwork Composite 1 Test Number Test feed P80, mm NaCN, g/L CN-1 F-6 65 2 25 NaCN CaO 5h 8h Au Recovery, % 24 h 48 h 72 h 96 h Cu Recovery, % Residue grade Head grade 48 h 96 h Au, g/t Cu, % Au, g/t Cu, % 5.68 1.22 35 39 42.3 24.7 1.58 0.28 2.73 0.37 CN-3 LCT-1 69 5 20 14.83 2.19 40 44 46.9 26.0 1.47 0.47 2.77 0.64 CN-5 LCT-1 12 2 20 14.69 1.55 51 61 66.7 57.3 0.98 0.26 2.93 0.61 CN-7 LCT-1 69 2 20 8.69 3.61 36 41 42.3 44.6 45.4 30.9 1.54 0.44 2.82 0.64 CN-2 F-7 ~70 2 25 3.31 0.71 29 34 37.1 44.1 0.79 0.06 1.25 0.11 Composite 3 CN-4 LCT-1 67 5 20 19.20 1.15 39 41 45.4 30.8 0.77 0.20 1.41 0.29 CN-6 LCT-1 11 2 20 8.94 1.92 50 57 61.4 57.4 0.51 0.12 1.32 0.28 CN-8 LCT-1 67 2 20 6.09 1.92 32 38 38.8 36.5 38.1 41.4 0.88 0.18 1.42 0.31
Slurry, % w/w
Cons. kg/t
As a general comment, the recoveries were low and cyanide consumption high. consumption appears to be due to the high rates of addition. 16.3.5 16.3.5.1 Metallurgical Projection and Metallurgical Parameters for Design Flotation
High cyanide
The differences in grades between the composites used in the testwork and those used as head grades for the study (see Table 16.22), necessitated estimation of the recoveries for use in the design.
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Table 16.22 Testwork and Design Ore Grades Hassai South Supergene (HSS) Grades Copper grade, % Gold grade, g/t Zinc grade, % Composite 1 7.62 7.44 1.13 Design 2.75 2.29 0.68 1.91 1.94 0.56 Hassai South Primary (HSP) Composite 3 Design 1.37 1.49 0.68 Hadal Awatib (HA) No Sample Design 0.99 1.18 0.68
The design recoveries for HSP were estimated assuming similar concentrate and tailing grades as those reported in the testwork (Test F8 and the Locked Cycle Test). Recoveries and grades for HSS were assumed, in the expectation that this type of ore will behave in similar way to the composite used for the testwork (Composite 1), but assuming lower concentrate grades to account for the lower ore design grade. For HA, recoveries and grades were assumed considering that this type of ore will behave in a similar way to HSP, but assuming lower concentrate grades to account for the lower ore design grade (except for final concentrate that was assumed to be the same as for HSP). Design concentrate and tailing grades assumed for the different flotation stages are presented in Table 16.23. The calculated stage recoveries are presented in Table 16.24.
Table 16.23 Design Concentrate and Tailing Grades Hassai South Super. Stream Rougher concentrate Cleaner 1 concentrate Cleaner 1 tail grade Cleaner scav. concentrate Cleaner scav. tail Cleaner 2 concentrate Cleaner 2 tail Cu (%) 15.0 25.0 2.0 12.0 1.5 32.0 8.0 Au (g/t) Calc. 18.0 Calc. 5.0 Calc. 22.0 Calc. Table 16.24 Design Calculated Stage Recoveries Ore Type Stage Rougher Cleaner 1 Cleaner scavenger Cleaner 2 Global Hassai South Super. Mass 15.8 51.6 4.8 70.8 7.0 Cu 86.2 93.0 28.6 90.7 81.0 Au 72.6 92.5 15.3 86.6 67.0 Hassai South Primary Mass 11.9 44.7 15.6 73.3 4.9 Cu 93.6 93.9 36.7 96.8 90.0 Au 50.5 69.8 17.8 89.6 36.0 11.3 39.9 12.5 56.3 3.4 Hadal Awatib Mass Cu 91.0 92.6 23.4 94.2 85.0 Au 49.2 57.5 8.5 93.8 29.0 Hassai South Primary Cu (%) 10.8 19.0 1.0 2.35 0.75 25.1 2.26 Au (g/t) Calc. 9.0 Calc. 3.6 Calc. 11.0 Calc. Hadal Awatib Cu (%) 8.0 15.0 0.8 1.5 0.7 25.1 2.0 Au (g/t) Calc. 6.0 Calc 2.0 Calc. 10.0 Calc.
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Other metallurgical design parameters derived from the testwork are as follows: Residence time required for the flotation area is based on laboratory flotation times with a residence time scale-up factor. Based on kinetic testwork data available for rougher flotation, it has been assumed that the rougher recoveries can be achieved with a design froth time of 40 minutes. Residence times of 20, 15 and 15 minutes, respectively, were selected for cleaner 1, cleaner scavenger and cleaner 2 stages. The circuit design includes two cleaner stages only. Froth time for cleaner 2 is scaled up from the total testwork time of cleaner 2 and cleaner 3 combined. Collector dosage of 50, 20, 10 and 10 g/t, has been selected for the rougher, cleaner 1, cleaner scavenger and cleaner 2 stages, respectively. Based on the batch and locked cycle testwork performed for both composites, a P80 of 69 m for grinding and 30 m regrinding, has been selected. CONCENTRATOR FLOW SHEET DEVELOPMENT
16.4
The concentrator facility includes all ore processing facilities from primary crushing to concentrate storage, and pumping and storage of process tailings. The plant design is based on a single processing train configuration, with a nameplate capacity of 5 Mt/a. The process flow sheet is shown in Figure 16.3. The key unit steps in the process flow sheet are as follows: Target primary grind to P80 69 m in the crushing/grinding circuit Conventional rougher flotation Regrind of rougher concentrate to a P80 30 m A three stage flotation cleaning circuit Concentrate thickening, filtration and transport Tailings thickening and disposal.
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Figure 16.3 5 Mt/a Block Flow Diagram
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16.4.1
Process Design Criteria and Mass Balance
Due to limited testwork undertaken to-date, the design criteria are in many instances derived from similar plants, benchmarks and assumptions. Areas in which assumptions have been made will require verification by testwork in future studies. Mass balances were developed for the three main ore types, Hassai South Supergene (HSS), Hassai South Primary (HSP) and Hadai Awatib (HA). Variations in flow rate as high as 108% for the same stream are observed when comparing the three mass balances (Table 16.25). The maximum differences result from the HSS ore type, but limited tonnage of this ore type exist and the HSS mass balance flows have not been used for equipment sizing.
Table 16.25 Slurry Flows (m /h) and Differences for the Different Ore Types Stream HSS HSP HA Diff. Max and Min. (%) Rougher concentrate Total feed to cleaner 1 Cleaner 1 tail Cleaner 1 concentrate Cleaner 2 tail Cleaner 2 concentrate Cleaner scavenger tail Cleaner scavenger con Concentrate thickener feed Concentrate thickener overflow Concentrate thickener underflow Feed to concentrate filter Concentrate cake Total Tailings to Tails Thickener 226.9 408.2 253.8 154.4 85.2 109.6 242.5 11.4 156.5 123.9 32.6 37.2 16.3 1284.1 170.4 322.4 217.9 104.5 55.1 76.7 184.6 33.3 109.6 86.7 22.8 26.0 11.4 1282.8 161.7 316.5 222.9 93.6 65.3 52.8 193.8 29.1 75.4 59.7 15.7 17.9 7.8 1300.6 40 29 16 65 55 108 31 193 108 108 108 108 108 1 HSP and HA Diff. (%) 5 2 2 12 16 45 5 14 45 45 45 45 45 1
3
16.4.2
Comminution Circuit
In the absence of testwork data, a Bond ball mill work index (BWI) of 15 kWh/t was assumed for the grinding circuit design. Due to the high pyrite content of the ore, and subsequent high specific gravity, the power required for a single mill would be 11 MW, hence the circuit was split in two stages comprising a SAG and a ball mill in combination. 16.4.3 Flotation Circuit
The flotation circuit flow sheet developed consists of three steps including rougher, cleaner 1, cleaner scavenger and cleaner 2 (recleaner) stages. Rougher concentrate is pumped to a regrind circuit prior to reporting to the cleaner circuit. Cleaner 1 concentrate feeds the cleaner 2 stage, and cleaner 2 concentrate reports to the concentrate thickener.
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Cleaner 1 tail feeds the cleaner scavenger stage, and cleaner scavenger concentrate is recycled to the cleaner 1 feed (optionally to the regrind stage). Cleaner scavenger tail is combined with the rougher tail and discarded. The cleaner stage is separated into cleaner, and cleaner scavenger banks to produce a separate cleaner circuit tail, rather than recycle cleaner tail to rougher or scavenger feed. This circuit has several advantages over a single cleaner bank type circuit, as it allows selection of a primary metallurgical goal for each stage. For example, maximising concentrate grade in the cleaner circuit and minimising copper and gold losses in the cleaner scavenger circuit. The flotation circuit design utilises Outotec, forced air, mechanically agitated, tank cells throughout. The design criteria residence time results in the selection of six cells in three pairs for the rougher and cleaner 1 stage, three cells for the cleaner scavenger stage and four cells in two pairs for the cleaner 2 stage. The selection of the cell volume and quantity is based on achieving the necessary residence time and the mass pull required by the design mass balance. The selected design criteria for the flotation circuit are provided in Table 16.26.
Table 16.26 Flotation Design Basis Description Rougher Flotation Cell type Design residence time, min Effective volume of cell, % Number of trains Number of cells, units per train 3 Cell volume, m /cell 3 Air feed per cell, Am /min Rougher concentrate, Solids SG, t/m3 Solids in rougher concentrate, % Solids in rougher conc. after spray water, % Cleaner 1 Flotation Cell type Design residence time, min Effective volume of cell, % Number of trains Number of cells, units per train Cell volume, m3/cell Air feed per cell, m3/min 3 Rougher concentrate, Solids SG, t/m Solids in rougher concentrate, % Solids in rougher conc. after spray water, % Value Forced air 40 85% 2 6 100 9-20 4.7 32% 25% Forced air 20 85% 1 6 20 3-7 4.7 30% 25% Source AMEC recommendation Assumed or estimated data AMEC recommendation AMEC recommendation AMEC recommendation Calculated Vendor data Assumed or estimated data Assumed or estimated data Assumed or estimated data AMEC recommendation Assumed or estimated data AMEC recommendation AMEC recommendation AMEC recommendation Calculated Vendor data Assumed or estimated data Assumed or estimated data Assumed or estimated data
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Table 16.26 Description Cleaner Scavenger Flotation Cell type Design residence time, min Effective volume of cell, % Number of trains Number of cells, units per train Cell volume, m3/cell Air feed per cell, Am3/min 3 Rougher concentrate, Solids SG, t/m Solids in rougher concentrate, % Solids in rougher conc. after spray water, % Cleaner 2 Flotation Cell type Design residence time, min Effective volume of cell, % Number of trains Number of cells, units per train 3 Cell volume, m /cell 3 Air feed per cell, Am /min Rougher concentrate, Solids SG, t/m3 Solids in rougher concentrate, % Solids in rougher conc. after spray water, % Flotation Design Basis Value Forced air 15 85% 1 3 20 3-7 4.9 20% 20% Forced air 15 85% 1 4 10 2-5 4.6 30% 25% Source AMEC recommendation Assumed or estimated data AMEC recommendation AMEC recommendation AMEC recommendation Calculated Vendor data Assumed or estimated data Assumed or estimated data Assumed or estimated data AMEC recommendation Assumed or estimated data AMEC recommendation AMEC recommendation AMEC recommendation Calculated Vendor data Assumed or estimated data Assumed or estimated data Assumed or estimated data
To date, no residence time optimisation testwork has been undertaken. AMEC believes that further optimisation of flotation residence time has the potential to reduce total equipment requirements. 16.4.4 Regrind
For this study, a circuit based on ISAmill units was assumed, due to proven higher power efficiencies for fine grinding. The regrind was considered in open circuit, with a desliming cyclone removing fines from the regrind mill feed (assumed 50% of the rougher concentrate). Regrind mill size and installed power were established utilising information from the vendor database for high pyrite concentrates at the required feed and product particle size. The vendor data showed a maximum power value of 12.6 kWt/h (average 8.8 kWt/h). Mill sizing considered that all rougher concentrate will feed the mill (bypassing the desliming cyclone). Final selection of regrind equipment should be based on a trade-off study, considering capital and operating cost estimates for both options. It will be necessary to establish operating parameters such as regrind power efficiencies, optimum media types and media consumption for the different types of mills by conducting regrind testwork.
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16.4.5
Concentrate Handling
Design criteria for concentrate thickening and filtration have been based on design parameters for a similar copper concentrate. Two Larox pressure filters were selected based on the design mass balance and the assumed design criteria. If alternative filter technology other than the selected Larox type filter is considered viable (eg horizontal plate and frame), additional appropriate testing will be required to ensure correct filter sizing. The selected design criteria are provided in Table 16.27.
Table 16.27 Design Basis Concentrate Handling Description Thickening Thickener type Settling rate, t/m .h Thickener diameter, m Underflow density, % w/w Filtration Filter type Availability,% Operating hours, h/d Specific filtration rate, kg/m .h Cake moisture, %w/w Number of filters, units Concentrate delivery method Dry concentrate SG
2 2
Value High rate 0.1 22 65% Auto. Pressure Filters 80.0% 19.2 360 10% 2 2t Maxibags 4.6
Source AMEC recommendation Assumed or estimated data Calculated data Assumed or estimated data AMEC recommendation Assumed or estimated data Assumed or estimated data Assumed or estimated data Assumed or estimated data AMEC recommendation Assumed or estimated data Assumed or estimated data
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17. 17.1
MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES GENERAL
The mineral resources identified at Hassai Mine as of the end of 2009 comprise: VMS resources with the exception of very minor adjustments to wireframes for Hassai South, the VMS resources remain the same as those reported in La Mancha,October 2009 (Hassai South) and La Mancha, December 2009 (Hadal Awatib East). No subsequent drilling or resource modelling has been undertaken for these deposits. Gold resources currently being mined or proposed for mining including: Current stockpiles Kamoeb Quartz ore, modelled and reported in La Mancha 2008, updated after infill drilling in 2009, and subsequently depleted by on-going mining activities Remnant in situ SBR and other oxide ores, also estimated and reported in La Mancha 2008
Tailings from past heap leaching operations. Drill tested in 2007/08 and 2009, but resources not formally included in any prior Technical Report.
The resources contemplated for the Hassai Mine Envisaged Business Plan comprise: Those included under the current heap leach operating plan through to the end of 2012, comprising: 17.2 17.2.1 Existing heap leach tailings up to end of 2008, drilled and estimated by Arethuse and included in the end-2009 resource statement. Additional heap leach tailings placed in 2009, as determined by CSA Planned heap leach tailings to be generated between 2010 and the end of 2012, as determined by CSA from the AMC mining schedule and expected recoveries.
In situ and stockpiled gold resources remaining at the end of 2012, determined from the above resources and the current AMC mining schedule. VMS resources determined by Arethuse as included in the end-2009 resource statement. VMS RESOURCES: HADAL AWATIB EAST AND HASSAI SOUTH Geological Model
Hadal Awatib East and Hassai South are the largest known VMS deposits in the Hassa district. The sulphides in the VMS deposits were originally overlain by a thick, well-preserved oxidation profile. The sulphides have been leached in the top 60-120 m, leaving an oxide cap and a quartz-kaolinitebarite white powdery residue below (SBR rock) that has high gold content and very low base metal content. The oxide and SBR has been largely mined out, although limited resources remain. The host rock to the two VMS deposits is sheared green mafic schist, and there is little or no stratigraphic information available to assist with the interpretation of the VMS bodies other than the sulphide lenses themselves.
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Hassai South deposit (Figure 17.1) comprises two main lenses striking east-west over approximately 1000 m and dipping 60o south, with little tectonic disruption. Towards the edges of the deposit the lens breaks up into two or three separate lenses with intervening beds of sheared volcanics. These lenses thin and pinch out to the east. Two zones exist, namely a copper-enriched supergene zone and a primary zone. The supergene zone is present at the bottom of the Hassa South pit and extends down dip for 40-60 m. The primary massive sulphide continues down dip from the base of the supergene zone for >250 m. The current drilling campaign has intersected massive sulphide to a depth of 400 m below the pit floor, and it remains open at depth. The Hadal Awatib East deposit (Figure 17.2) has been subjected to several deformation events. The mineralisation is broadly continuous and consists of two mineralised lenses, with limited bifurcations, but the lenses are folded and faulted. The orebody trends 105/285o for 1200 m length and has a vertical extent of 150-350 m below the oxidation limit. The separation between supergene and primary mineralisation was difficult to identify during core logging, and there is no appreciable supergene enriched (Cu or Au) domain. Leaching of Zn has been observed in the top 50 m. The distinction between supergene and primary ore types, believed to be a soft limit, has been set at 50 m below the base of oxidation, but has been used for dry bulk density assignment only. While chalcopyrite stringer mineralisation has been recorded, it has not been logged systematically. No coherent zones are recognised and this style of mineralisation is not included in the mineral resources at this stage.
Figure 17.1 Hassai South Main Cu-Au Ore Bodies Long Section South to North (100 m Grid)
Actual pit Supergene Primary
Oxidation Limit
Supergene Limit
Actual pit Oxidation Limit Supergene Limit
SBR Supergene Primary
Figure 17.2 Hadal Awatib East : Surface Trace of Main Mineralised Bodies
AB
Link 8 CD 7
5 3 2 1
Orebody Number
Main vms axis
9: all purple small mineralised bodies with limited extension
17.2.2
Cut-off and Domain Modelling
The 3D modelling, geological and block models, geostatistical analysis and grade modelling have been conducted using Surpac Vision V6.1. Geological sections have been interpreted on vertical crosssections, and wireframes were snapped to the drill holes. For the sulphide zones, a copper equivalent (CuEq) cut-off grade of 0.8% was used to guide interpretations, based on the formula CuEq % = Cu % + 0.63 x Au ppm. This relationship takes account of metal prices ($750/oz gold and $2.00/lb copper) and recoveries. The following rules were applied during interpretation: At least 1 m mineralised interval Maximum 2 m barren interval, with final average grade above cut-off grade Flexibility applied to give consistent mineralised body outlines.
For the oxide zone at Hadal Awatib East a 1 g/t Au cut-off was considered, which is consistent with current and historical mining. The Hadal Awatib East oxide zone has been modelled and is now being mined. At Hassai South some residual acidic high grade SBR ore remains at the bottom of the pit but the oxide zone has not been modelled. Pb and Ag are not considered economic at this stage, even as by-products. Zn is slightly higher grade and has been estimated separately. Modelling of Zn zones was possible using a 0.75% cut-off at Hadal Awatib East and 1% at Hassai South. For Hassai South, a minor revision of the wireframe was undertaken in April 2010, leading to slightly different resources from those published in 2009. This revised model is considered to be a slight improvement and has been used to develop the Mining Inventory for the scoping study.
17.2.3
Down-dip Drill Holes within the Supergene Domain
At Hassai South, AMC has drilled a number of holes from the bottom of the pit, many of which did not fully intersect the supergene sulphide lenses. An over-estimation is possible in some cases. The shape of the variographic ellipsoid (see variography, Section 17.2.8) shows that the variability is at a maximum in both the across-strike and down-dip directions, and that both directions should be drilled. 17.2.4 Overall Population Distribution and Top-cuts
Core and RC samples have a typical and generally consistent length of 1 m and samples were composited to this length for statistical and variographic analysis, and for grade interpolation. Basic statistics for the two deposits are provided in Table 17.1.
Table 17.1 Hadal Awatib East (HAE) and Hassai South (HASS) Sample Statistics HAE Oxide zone Au Cy Number of composites Min Max Mean Median Variance Standard Deviation Coefficient of variation Upper cut-off 2169 96.66 9.69 5.1 135.12 11.62 1.2 35 g/t HAE Sulphide Zone Zn (0.75%Zn envelope) 1609 0.01 7.05 1.56 1.31 1.19 1.09 0.7 4% HASS Primary Zn (1% Zn envelope) 27 0.57 2.94 1.48 0.36 0.6 0.41 No AuFa g/t Cu% Zn% (Cu-Au envelope) 825 0 4.59 0.4 0.43 0.65 1.63 No Zn (1% Zn envelope) 133 0.03 4.63 1.7 0.66 0.82 0.48 No
Au FA ppm 2880 0 32.6 1.09 0.95 1.18 1.09 0.99 7.5 g/t
Cu% 3354 20.9 1.19 0.64 2.74 1.65 1.39 6.3 to 8%
HASS Supergene AuFa g/t Cu% Zn% (Cu-Au envelope) 458 0 4.02 0.29 0.31 0.56 1.91 No
Number of composites Min Max Mean Variance Standard Deviation Coefficient of variation Upper cut-off
398 0.02 23.6 2.2 9.66 3.11 1.41 13g/t
458 0.02 15.02 2.98 6.6 2.57 0.86 No
765 0.03 17.7 1.49 1.69 1.3 0.87 No
825 0.02 6.13 1.43 1.46 1.21 0.85 No
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Top-cuts have been looked at carefully for the individual ore bodies. In most cases, a top-cut is not required, however at Hadal Awatib East, the oxide zone shows higher grade dispersion of gold, thus a 35 g/t Au top-cut has been applied, this being typical for AMCs SBR deposits. Some high Cu and Au values need to be cut; these values most likely represent stringers in the feeder zone, which have not yet been delimited. At Hassai South, some higher Au grades in the supergene zones have been cut, to limit the number of outlier values. The comparison of statistics between raw samples, composites and composites samples with top-cuts, show very acceptable results. 17.2.5 Dry Bulk Density
In Hassai South, density distribution (Table 17.2) reflects the presence of a few barren intervals (silicate) and the presence of both massive and disseminated sulphides. Despite being systematic, the density measurement spatial distribution is not yet complete. Density measurement in the supergene zone was mostly done on down-dip drill holes, and on the western end only in the primary zone.
Table 17.2 Hassai South Density on Cores within Sulphide Mineralisation Supergene Primary Supergene Primary
Composites Density Number Min Max Mean Median Trimean Biweight Std dev Cov 343 1.48 5.03 4.19 4.45 4.40 4.42 0.71 0.17 168 2.68 4.93 4.31 4.77 4.55 4.48 0.73 0.17 10.0 Percentile 20.0 Percentile 30.0 Percentile 40.0 Percentile 50.0 Percentile 60.0 Percentile 70.0 Percentile 80.0 Percentile 90.0 Percentile 95.0 Percentile 97.5 Percentile 2.83 3.84 4.13 4.28 4.45 4.58 4.67 4.73 4.79 4.83 4.85
Composites Density 3.00 3.52 3.97 4.48 4.77 4.82 4.84 4.86 4.88 4.90 4.90
Density does not always correlate with the Cu + Zn or Au values. As a result a uniform density was preferred for each mineralised domain. The mean density of 4.19 in the supergene domain and of 4.31 in the primary domain are considered conservative because they are significantly below the median, corresponding approximately to the 35th percentile. These densities are comparable to similar projects.
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In Hadal Awatib, where sulphide density measurements are scarce, the following uniform densities have been assigned for the domains: Oxide (SBR): 2.1 Supergene sulphide: 4.2, compared with 4.19 in Hassai South Primary sulphide: 4.4, compared with 4.31 in Hassai South Indicated resources in the sulphide domains (mostly supergene) have been assigned a 4.2 density in order to be conservative.
Detailed analysis of the data set suggests that the silicate host rock has a density of 2.7-2.8 which is similar to other deposits in the area. 17.2.6 Correlations Between Elements
A correlation matrix has been reviewed for each domains for both Hassai South and Hadal Awatib East. Results are shown for Hassai south primary ore in Table 17.3, and similar relationships were observed for the other domains. Correlation between the different elements is typically average or low, as is the correlation between density and any element. This suggests that the definition of sub-domains would enhance the overall quality of future models.
Table 17.3 Hassai South Primary Ore Correlation Matrix Density Density Au FA Cu Zn Cu Eq Cu+Zn 1 0.3648 0.0456 -0.1778 0.1948 -0.0114 1 0.1478 -0.0045 0.5194 0.1192 1 -0.1073 0.9396 0.9681 1 -0.0779 0.2225 1 0.9 1 Au FA Cu Zn Cu Eq Cu+ Zn
17.2.7
Variography and Interpolation Parameters
Variography and ordinary kriging (OK) interpolation was conducted on the following primary domains: Hassai South Cu-Au supergene with a CuEq 0.8% cut-off Cu-Au primary with a CuEq 0.8% cut-off Cu and Au sulphide zone with a CuEq 0.8% cut-off: Orebody 6 Zn sulphide zone with a 0.75 % Zn cut-off: Orebody 6 (Zn envelope) Au Oxide with a 1g/t Au cut-off : Orebodies 3, 4, 5.
Hadal Awatib East
The remaining domains were interpolated using inverse distance square (IDS) with parameters based on variographic analysis of adjacent domains. All Indicated resources have undergone their own variographic analysis and OK interpolation.
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The samples were composited to 1 m lengths, and upper cut-offs were applied as discussed previously. The 3D variographic analysis, based on variographic maps and standards tests, led to the definition of a 3D ellipsoid parallel to the mineralised body. All variograms were modelled using 1 or 2 nested spherical variogram models. In Hassai South: The variogram ellipsoid for the primary domain is parallel to the ore body as expected, with the major axis east-west, a semi-major axis down dip, and a minor axis across dip with a very short range. Ranges on the major axis are very long. The variogram ellipsoid in the supergene domain shows a semi-major axis range close to the minor axis range; it suggests an heterogeneity developed in both directions: horizontally across the deposit strike, and vertically parallel to the oxidation direction. Most of the minor axes were not possible to model, in which case the down-hole variogram was used with a correcting factor. The Zn variogram cannot be modelled. It was not possible to model the density variogram in the primary domain, hence an average density was assigned to the model for each domain. Block Model Block Model Definition
17.2.8 17.2.8.1
Block model dimensions are provided in Table 17.4.

Table 17.4 Block Model Definition Hadal Awatib East Y Minimum Coordinates Maximum Coordinates User Block Size Min. Block Size Rotation 2068000 2068900 5 X 751500 753300 100 Z -300 580 20 Y 2077600 2079200 20 2.5 Bearing: 75
o
Hassai South X 759200 759840 20 2.5 Dip: 0

o
Z 0 640 10 1.25 Plunge: 0

o
No sub blocks, ore percentage per block Bearing: 0

o
Dip: 0
Plunge: 0
In Hassai South, kriging neighbourhood analysis (KNA) test work was carried out on the copper data, in order to minimise the conditional bias and to maximise kriging efficiency (KE) during the estimation. Block model parameters such as block size, number of samples, search ranges and discretisation levels were optimised, resulting in selection of blocks measuring 5x100x20 m (YXZ). In Hadal Awatib East, due to the high heterogeneity between different areas, the block size was based on the drill holes spacing in the supergene area drilled for Indicated resources: 20x20x10 m block size compared with a drill spacing of 40x20 m.
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17.2.8.2
Grade Interpolation
Kriging and search ellipsoids determined from the variographic analysis are presented in Table 17.5.
Table 17.5 Kriging Search Ellipsoids
Domain Type of interpolation Top-cut Kriging ellipsoid 3x3x3 discretisation points KAMS1_ 1
OK 30 g/t
KAMS1_ 2
OK
KAMS1 _3
ID2
KAMS1 _4
ID2
KAMS1 _5
ID2
KAME1 _1
OK 30 g/t
KAME2 _2
OK 30 g/t
KAME2 _3
OK 30 g/t
KAMW3 _1
ID2
KAMN4 _1
ID2
KAMN4 _2
ID2
KAMN4 _3
ID2
Nugget (c0) 1st structure
9 12.6 23 7.2 120 1.4 9 240 55 0
5.5 8.5 35 7 150 1.4 11 220 55 0
12 23.5 12 25 110 2.1 9 330 0 45
13 17 20 13 160 2.1 12 127.4 -28.8 54
9 12 30 9 180 2 8 137.4 -28.8 54
(c1, a1) 2nd structure (c2, a2) Major / semimajor Major / minor Bearing Major Dip Plunge
Search ellipsoid
Max. distance Major / semimajor Major / minor Bearing Major Dip
120 1.4 9 240 55 0
150 1.5 11 220 55 0
150 1.5 5 240 55 0
150 1.5 5 220 55 0
150 2.1 5 127.4 -28.8 54
110 2.1 9 330 0 45
160 2.1 12 127.4 -28.8 54
180 2 8 137.4 -28.8 54
150 1.5 5 305 55 0
150 1.5 5 255 65 0
150 1.5 5 240 45 0
250 1.5 5 235 50 0
Plunge Nb informing samples 1st pass of Min Max
20 100
20 100
3 30
2 30
3 30
20 100
20 100
20 100
3 30
3 30
3 30
3 30
Interpolation was conducted within separate domains, based on their separate samples sets, ie. hard boundaries were employed between domains. OK interpolation was performed when possible, with IDS used where data were too scattered for variographic analysis. All but a few blocks were interpolated. Non-interpolated blocks were assigned a value equal to the mean of the surrounding blocks. 17.2.8.3 Model Validation
The block model grades have been compared against the composite samples, per vertical profile, or per horizontal level for both the oxide and the primary domains and were found to be closely comparable. Figure 17.3 shows an example of a validation plot for Hadal Awatib East. There is a slight underestimation for Cu and CuEq in Hadal Awatib East, likely linked to the capping. Block model volume reports have been checked against the wireframes volumes. Differences are negligible.
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Figure 17.3 Hadal Awatib East Validation Chart for Sulphide Ore Grade per Vertical Profile
17.2.8.4
Model Presentation
Sections through the models are displayed in Figure 17.4 and Figure 17.5.
Figure 17.4 Hadal Awatib East Block Model : Oblique Views Au, Cu, Zn, CuEq, AuEq, Resources Category
Au ppm
AuEq ppm
Cu %
CuEq %
Zn %
Resources Categories
Indicated Inferred
Figure 17.5 Hassai South Block Model : Oblique Views Au, Cu, Zn, CuEq, AuEq
Au (g/t)
Existing pit Lower Supergene Limit
Existing pit Lower Supergene Limit Cu (%)
Existing pit Lower Supergene Limit Cu Eq (%)
Existing pit Lower Supergene Limit
Zn (%)
17.2.9
Confidence Classification and Mineral Resource Reporting under NI 43-101
Confidence classification is mostly based on drill-hole spacing, but includes a review of geological continuity, grade continuity, QAQC and database quality. The overall geological continuity of the VMS sulphide domains is reasonably assumed but still often inferred, especially for the continuity at depth and in between widely spaced drill holes. It is supported by geophysics, surface geological mapping, and outcrop on the pit floor. Geological continuity and grade continuity has been well demonstrated for Ore Body 6 (the western part of Hadal Awatib East) and for the oxide domain. Drilling of the supergene zone at Hassai South is potentially biased and some over-estimation of the grades may have happened due to the large numbers of down-dip drill holes compared to the acrossstrike drilling. On the other hand, the acidic SBR ore (which contains high Au grades) has not been evaluated. The boundary between acidic SBR and supergene sulphide ore is irregular and may not have been accurately delineated. The contact between supergene and primary sulphide ore has been conservatively chosen at RL 390 m, as information is insufficient for more precise definition. The wireframe was slightly updated in April 2010 for the mining inventory and the previously published figure has been updated here. Samples supporting the HAE Link oxide gold deposit (Indicated resource) mainly date back to 2005-06, were well-documented and are of acceptable standards, although QAQC data is limited by current standards. The database for recent drilling is of acceptable standing, but the database for historical drill holes is questionable. The weaknesses in the databases are not believed to have impaired the materiality of the resources at this level of confidence. There is a shortage of density measurements over the sulphide domains. The assignment of a uniform bulk density is considered appropriate and conservative. Therefore, it is the authors opinion that the Resource estimates as shown in Table 17.6 can be classified as Indicated and Inferred Mineral Resources according to NI 43-101 standards.
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Table 17.6 Hadal Awatib East (HAE) and Hassai South (HASS) Resources Estimates as of 31 December 2009 Category Area/Type Tonnes (kt) Oxides Indicated HAE Link HAE - other Total Indicated Inferred HAE Link HAE - other Total Inferred Indicated HA East, Cu>2% HA East, Cu<2% HS South, Supergene HS South, Primary Total Indicated Inferred HA East, Cu>2% HA East, Cu<2% HS South, Supergene HS South, Primary Total Inferred Note: Au was assayed by Fire Assay (30 g pulp) in sulphide zone, and by Cyanide Leach in oxide zone; Cu and Zn were assayed by triple acid digestion with AAS finish. Sulphide cut-off CuEq 0.8%, and oxide cut-off Au 1g/t. Cut-offs based on metal prices of $750/oz gold and $2.00/lb copper, and include relevant recoveries and costs to produce metals. HAE LINK is currently being mined. The resources of HAE Link have been updated following the Hadal Awatib re-evaluation. Sulphide blocks of Hadal Awatib East have been filtered at 2% cut-off to allow separate reporting of high grade Cu mineralisation. 205.5 127.7 333.2 3.5 65.5 69.0 Sulphides 508 2 390 2 898 2 930 25 400 1 530 18 620 48 480 0.93 0.75 1.23 2.29 1.49 1.33 1.27 2.50 0.81 2.75 1.37 1.19 86 700 71 000 1 001 000 112 000 894 000 2 078 000 36 800 73 000 206 000 42 000 255 000 576 000 0.78 0.96 2.80 0.95 12 000 74 000 14 200 22 600 9.53 8.85 9.27 12.54 8.32 8.53 63 000 36 300 99 300 1 400 17 500 18 900 Gold (g/t) Copper (%) Gold (oz) Copper (t)
Significant high grade Cu zones have been statistically highlighted and are expected to correspond to the stringer/feeder zones. Thse will require additional drilling because of their specific interest. Zn grades are too low to be reported as a resource at this stage of the study, but have been modelled for metallurgical purposes. 17.3 KAMOEB RESOURCES
All work has been carried out using Surpac Vision V6.1. 17.3.1 Geological Model
The Kamoeb group comprises four distinct quartz veins sets (Figure 17.6). Gold is associated with the main quartz veins, but can also be found in the immediate wall rocks. The veins have been mapped and modelled in 3D, with input from recent mining.
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Figure 17.6 Kamoeb Area Distribution of Mineralised Veins - 2009 model
Kamoeb North
Kamoeb North
Kamoeb East
Kamoeb West
Kamoeb South
Kamoeb East is located within a shear corridor with intense crenulation and faulting (Chevalier, 2009). Quartz veins have been partly dismembered, and remobilisation of gold within the wall rock is especially important at this site. Despite the high density of drilling, geological continuity is poorly understood. Kamoeb South is very continuous along two main quartz veins dipping 50-70o to the south. Kamoeb North and Kamoeb West, despite being sheared, appear to be two distinct sets of relatively continuous, but thin veins that pinch and swell. Coarse gold was commonly observed in polished sections from Kamoeb. AMC submitted ten samples for screen fire assay to Intertek, Jakarta in 2009. The laboratory concluded that although there was some coarse gold (>75 m) the coarse gold effect was not important and would not affect the accuracy of the assay.
17.3.2
Cut-Off and Domain Modelling
Veins have been interpreted and wireframed at a cut-off grade of 0.8 g/t using cyanidable gold (Au Cy) for 2001/2004 drill-holes, and fire assay gold (Au FA) for 2008-2009 drill-holes. The cut-off grade of 0.8 g/t Au is based on current AMC operating practices. Dilution rules are as follows: At least 1 m mineralised interval Maximum 2 m barren interval, with the final average grade remaining above cut-off grade Flexibility has been applied to give consistent mineralised body outlines.
Interpretation and wireframing was done on cross-sections, and all solids were snapped to drill holes. Wireframes were manually adjusted where geometry could have been an issue. Barren intervals within veins have been modelled as voids. Voids and solids have been intersected. All wireframes have been clipped to the topography (1 January 2010). Five volumes (sets of closed wireframe) have been individualised for Kamoeb South, three for Kamoeb East, one for Kamoeb West, and three for Kamoeb North. Due to the poor geological understanding, modelling in Kamoeb East remained interpretative. 17.3.3 Population Distribution and Top-cuts
Capping (top-cut) was considered where the coefficient of variation (standard deviation/mean) exceeded 1.2, at the 97.5% percentile, and where outliers appeared on a standard log-normal population distribution. Where possible, no top-cut was applied, in order to avoid being overly conservative, while excluding high-grade nuggets that would lead to over-estimation of grades. For practical reason a uniform top-cut has been preferred. Basic statistics are summarised in Table 17.7, and have been determined on 1 m composites, with no cut-off or top-cut applied. Most of the samples were also 1 m long, and the statistical difference between samples and composites is not significant. For variographic analysis and interpolation purposes, the samples within the orebody wireframes were composited to 1 m. Fire assay and cyanidable gold data have slightly different distributions, but it was considered that mixing of the two populations was acceptable for the overall estimates.
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Table 17.7 Proposed Gold Top-cuts for Different Domains (Au FA and Au Cy) Kamoeb South KAMS1_1 KAMS1_2 KAMS1_3 KAMS1_4 KAMS1_5 KAME2_1 Kamoeb East KAME2_2 KAME2_3 Kamoeb West KAMW3_1 Kamoeb North KAMN4_1 KAMN4_2 KAMN4_3 4.79 3.12 3.20 0.58 0.39 4.79 Page 130
Maximum value Mean Median Coefficient of variation 97.5

th
53.00 4.34 2.76 1.20
29.80 3.10 2.02 1.11
8.20 2.81 1.58 0.85
5.31 2.12 1.44 0.66
18.20 5.42 3.60 0.99
76.00 8.59 6.50 1.03
123.00 4.88 2.16 2.13
54.60 4.28 2.14 1.46
12.00 2.59 2.10 0.74
17.26 2.67 1.87 0.90
2.17 1.36
Percentile Proposed top-cut
17.90 30
13.16 -
8.20 -
5.31 -
18.20 -
31.39 30
34.85 30
20.90 30
7.30 -
8.87 -
Note that KamS1 and KamE2 veins have now been mined, but their data were used for modelling and separate basic statistics have been conducted as well. Results of these statistics have been carefully examined as part of the capping analysis. 17.3.4 Dry Bulk Density
Based on the data set presented in Section 17.2.5, uniform densities of 2.55 for ore and 2.8 for waste have been used for the resource estimates and are considered to be conservative. 17.3.5 Variography and Interpolation Parameters
Variography was conducted on 1 m composite with a top-cut applied. It was conducted on the main vein sets where data distribution was sufficiently dense for variographic analysis, ie KamS1_1, KamS1_2, KamE2_1, KamE2_2, KamE2_3. Variogram modelling commenced with an omni-directional variogram and a variogram map within the main mineralised plan. All variograms were modelled using two nested spherical variogram models. All models are based on normal variograms. Ellipsoid parameters are given along with the Surpac convention in Table 17.9. Variogram structures are poorly defined. Part of the reason for this may be the difference between AuCy and AuFA populations. All nested variograms have a strong nugget effect (20-30%), a high variance and a strong first variogram structure. The shapes of the kriging ellipsoids are in accordance with vein geometry, except in Kamoeb East where strong shearing has affected the veins.
AMEC
Detailed kriging parameters, directly derived from the variographic analysis, are presented in Table 17.9. 17.3.6 17.3.6.1 Block Model Block Model Definition.
KNA was undertaken in 2008 as part of the Kamoeb South and Kamoeb East study, and block sizes of 10x10x10 m or 10x10x5 m were proposed. For practical reason 10x10x5 m has been preferred with small sub-block to allow accurate volume calculation (Table 17.8). This is consistent with drilling at 50x25 m to 25x25 m for Kamoeb South and East. Less consideration was given to Kamoeb North and East given their Inferred Resource status.
Table 17.8 Kamoeb Block Model Definition Y Minimum Coordinates Maximum Coordinates User Block Size Min. Block Size Rotation 2061820 2063420 10 2.5 -30 X 750640 752880 10 2.5 0 Z 300 780 5 1.25 0
17.3.6.2
Grade Estimation
Interpolation parameters for OK and IDS are specified in Table 17.9 for each domain. Two passes of OK have been used to maximise the number of informing samples. IDS has been used for the few blocks not informed by OK. Blocks interpolated with IDS were all classified as Inferred.
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Table 17.9 Kamoeb Interpolation Parameters Domain Type of interpolation Top-cut Kriging ellipsoid 3x3x3 discretisation points Nugget (c0) 1st structure (c1, a1) 2nd structure (c2, a2) Major / semimajor Major / minor Bearing Major () Dip ( ) Plunge (o)
o o
KAMS1_1
KAMS1_2
KAMS1_3
KAMS1_4
KAMS1_5
KAME1_1
KAME2_2
KAME2_3
KAMW3_1
KAMN4_1
KAMN4_2
KAMN4_3
OK 30 g/t 9 12.6 23 7.2 120 1.4 9 240 55 0
OK
IDS
IDS
IDS
OK 30 g/t
OK 30 g/t 13 17 20 13 160 2.1 12 127.4 -28.8 54
OK 30 g/t 9 12 30 9 180 2 8 137.4 -28.8 54
ID2
ID2
ID2
ID2
5.5 8.5 35 7 150 1.4 11 220 55 0
12 23.5 12 25 110 2.1 9 330 0 45
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Table 17.9 Kamoeb Interpolation Parameters Domain Max. distance Major / semimajor Search ellipsoid Major / minor Bearing Major (o) Dip (o) Plunge ( ) No. informing samples 1st pass No. informing samples 2nd pass Method No. informing samples 3rd pass Min Max Max distance Min Max Min Max
o
KAMS1_1
KAMS1_2
KAMS1_3
KAMS1_4
KAMS1_5
KAME1_1
KAME2_2
KAME2_3
KAMW3_1
KAMN4_1
KAMN4_2
KAMN4_3
120 1.4 9 240 55 0 20 100 5 20 ID2 5 30 250
150 1.5 11 220 55 0 20 100 5 20 ID2 5 30 250
150 1.5 5 240 55 0 3 30
150 1.5 5 220 55 0 2 30
150 2.1 5 127.4 -28.8 54 3 30
110 2.1 9 330 0 45 20 100 5 20 ID2 5 30 250
160 2.1 12 127.4 -28.8 54 20 100 5 20 ID2 5 30 250
180 2 8 137.4 -28.8 54 20 100 5 20 ID2 5 30 250
150 1.5 5 305 55 0 3 30
150 1.5 5 255 65 0 3 30
150 1.5 5 240 45 0 3 30
250 1.5 5 235 50 0 3 30
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17.3.6.3
Model Validation
Block model volume reports have been checked against the wireframes volumes. Differences are negligible. The block model grades have been compared against the composite samples, per vertical profile, or per horizontal level for both the oxide and the primary domains, and are very comparable. An example is shown in Figure 17.7 for cross-sections through the two main vein sets KMS_1 and KMS1_2.
Figure 17.7 Kamoeb South Validation Chart: Block Model vs Drill Holes Data by Cross-section
17.3.7
Confidence Classification and Mineral Resource Reporting Under NI 43-101
Geological continuity and grade continuity have been well demonstrated in Kamoeb South. At Kamoeb East, understanding of the geology is incomplete and geological continuity is sometimes only inferred. Grade continuity in Kamoeb East is acceptable, due to the high density of samples. For Kamoeb West and North, geological and grade continuity is still inferred, but acceptable for resource estimation at that level. The database has been consolidated for this exercise, and internal controls show that it is of acceptable standards. Sampling and assay are a patchwork of practices that appear to be acceptable and compatible. The use of cyanidable gold results in an undercall of the true gold grade, and therefore the overall result will tend to be conservative compared to a total gold method.
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The bulk density is uniform and is considered slightly conservative. Resources classification is based on continuity of the veins, their density of drilling and the geological continuity: Kamoeb South and East Where estimated by OK in two passes, the main veins are considered Indicated Low quality interpolation (3rd pass) for the two main veins are considered Inferred. Blocks lying distant from the last drill holes fence have been manually downgraded to Inferred resources Low continuity veins are considered Inferred Some areas where geological continuity is inferred for Kamoeb East have been downgraded to Inferred.
Kamoeb West and Kamoeb North have been classified as Inferred resources.
Note that Indicated resources are supported by a high density of informing samples, and that most of them have been estimated through the 1st pass of kriging, implying at least 20 informing samples. Despite the high density of drilling in some areas, no resources have been classified as Measured, since: The mixture of assay and drilling practices makes it difficult to ensure the necessary precision Assays remain relatively imprecise with high nugget effect Geology in Kamoeb East and at the intersection of Kamoeb East and South remains poorly understood.
Therefore, it is the authors opinion that the resource estimate as shown in Table 17.10 can be classified as Indicated and Inferred Mineral Resources according to NI 43-101 standards.
Table 17.10 Kamoeb Group NI 43-101 Gold Mineral Resources 1 January 2010 Ore Type Category Location Kamoeb South Kamoeb East Kamoeb South Kamoeb East Kamoeb West Kamoeb North Total Inf. Notes: Au was analysed by Fire Assay (30 g or 50 g pulp) or cyanidable gold (3 hr leach). Cut-off is 0.8 g/t, which is in line with current operations, and assumes a metal price of $750/oz. Resources are inclusive of reserves. Mining resumed in December 2009. Mine depletion since then has not been subtracted. Tonnage (kt) 3 309 514 3 823 207 96 234 2 045 2 582 Grade (g/t Au) 3.63 5.01 3.82 3.58 5.91 2.42 2.47 2.69 Metal (oz Au) 386 600 82 900 469 500 23 800 18 200 18 200 162 800 223 000
Indicated Total Ind. Quartz Inferred
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17.4
TAILINGS RESOURCES
Heap leach residue (tailings) have been drilled in 2007/2008 and 2009 for all heaps stacked up to end of 2007, and resources were estimated using resource modelling techniques by Arethuse. More recently (September 2010), stacked heaps which were still active at the time of drilling have been estimated by CSA using a metallurgical balance approach. Forecast tailings from heap leach operations over the period 2010 to 2012 are implied from the AMC mining schedule, using historical recoveries to forecast tailings grades, although these are not included in the current resource statement. All 3D models, geological and block models have been created using Surpac Vision V6.0 and above. 17.4.1 17.4.1.1 Resources Estimated by Arethuse Using Conventional Resource Modelling Techniques Heap 63A to 113 Topography
The different heap leach pads were frequently reshaped by earth-moving equipment, and several stages of surveying were necessary to follow up on the material movement. Survey was sufficiently detailed to individualised the different heaps that were drilled. Corrections were made in order to model minor features and improve the precision in volume modelling, such as pavement for the conveyor belt (30 cm), berms, etc. The tailings are divided into four blocks, A, B, C and D, of one or two layers, with a third layer added to Block D. Heap leach pads have been stacked in 6 m slices using a moving stacker. They are stacked in a northsouth direction, with the exception of the upper layer of Block C which was deposited in an east-west direction. Every heap is about 50 m wide. A 150 m length of deposit represents about 63 000 m3 (or 110 000 t). Blocks B and C were reshaped by bulldozer in 2008 to prepare room for additional heaps in 2009, and some material has been retrenched from Block D. Topography evolved again in 2009, by raising new heaps on the existing ones. Changes to the heap leach pads are shown in Figure 17.8.
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Figure 17.8 Comparison of Topography November 2007 (Top), October 2008 (middle) and December 2009 (Bottom)
HLPD
HLPC
HLPB
HLPA
Additional Heaps HLPD
HLPC
HLPB
HLPA
D: Retranchement of 14,500m3 C: Remodelling of top layer: - 42,200 m3 A: Remodelling of bottom layer: - 26,900 m3
Additional stacks
Additional stacks
Additional stacks
17.4.1.2
Domain Modelling
Heaps have been modelled and interpolated as whole blocks. Each block has been modelled separately as A, B, C and D, Upper and Lower, thus creating eight distinct models that have been estimated independently. Blocks B and C Upper and Lower were fully drilled in 2007. Volumes and tonnage have been remodelled and adjusted in late 2008 Block A Lower was partially drilled only as it was covered by active heaps in 2008 that were still active during the second drilling campaign in 2009 Block D Upper and Lower was drilled out in the 2007 and 2009 campaigns. Since then, a few additional stacks have been raised above the Upper level, but are still active at the time of the resources estimates The lower surface of the heaps is still imprecise; some of the lower volumes could not be evaluated with enough precision and were classified at this stage as Inferred. Overall Population Distribution and Top-cuts
17.4.1.3
Basic statistics for the tailings data set are shown in Table 17.11.
Table 17.11 Tailings Resource Basic Statistics Au Fire Assay (g/t) File Number of samples Minimum value (g/t) Maximum value (g/t) Mean Median Variance Standard Deviation Coefficient of Variation 2.5 Percentile 5.0 Percentile 10.0 Percentile 25.0 Percentile 50.0 Percentile 75.0 Percentile 90.0 Percentile 95.0 Percentile 97.5 Percentile 100.0 Percentile Top-cut Cut-off Block A 593 0.34 11.9 2.00 1.68 1.90 1.38 0.69 0.59 0.82 0.94 1.26 1.68 2.23 3.25 5.00 6.23 11.90 5.00 0.82 Block B 315 1.39 9.54 3.54 3.26 2.04 1.43 0.4 1.55 1.71 1.90 2.56 3.26 4.33 5.37 6.15 7.27 9.54 6.15 1.70 Block C 344 0.83 10.1 2.16 1.97 0.92 0.96 0.44 1.02 1.12 1.31 1.53 1.97 2.55 3.17 3.97 4.34 10.1 4.00 1.10 Block D (2007/2008) 1154 0.01 29.17 1.93 1.74 1.32 1.15 0.60 0.85 0.98 1.10 1.36 1.74 2.25 2.90 3.27 3.95 29.17 3.30 0.95 Block D1 (2009) 1276 0.43 29.17 1.95 1.75 1.40 1.18 0.61 0.76 0.88 1.03 1.33 1.75 2.32 3.02 3.52 4.19 29.17 NA NA Block D2(2009) 1362 0.01 17.5 1.41 1.22 0.73 0.85 0.60 0.51 0.60 0.70 0.91 1.22 1.69 2.31 2.78 3.22 17.5 NA NA
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Au assays show a log-normal distribution, with a few outlier higher grades. In earlier work, top-cut and lower cut-off corresponded to the 5th and 95th percentiles. Both were applied for variographic analysis for Blocks A, B and C in 2007/2008, whereas only the top-cut has been used for kriging interpolation. In 2009, a slightly different approach was preferred. influence of high values was restricted to one block. 17.4.1.4 Dry Bulk Density Interpolation was run using GEMS and the
The mean dry bulk density varies from 1.5 to 1.9 depending on the compaction factor. This variability is due to the nature of the heap material as well as the somewhat subjective nature of the density test. Reconciliation with production data (2007) suggests a wet density of 1.65 to 1.7, with a corresponding dry density of 1.5 to 1.6. For resource estimation purposes, a conservative uniform value of 1.5 was selected. 17.4.1.5 Variography and Interpolation Parameters
Variography has been conducted separately for each Block. Samples are uniformly of 1.5 m. All grade values have been trimmed-off for variographic purpose with a top-cut and a lower cut, as deduced from the statistical analysis. The standard variographic tests have been done including variographic maps using different plans and down-hole variography. Kriging parameters, a direct consequence of the variographis analysis, are presented in Table 17.13. 17.4.1.6 Block Model
Block Model Definition The difference between block model reports and solids averages 0.05%, and the block-model volume estimates are therefore considered to be accurate. KNA test work was carried out after the first drilling campaign, using blocks in all Blocks, to maximise KE during grade estimation, by optimising the block model parameters such as block size, number of samples, search ranges and discretisation levels. Orientation of the block-model (strike 105o) is an average orientation between Blocks A-B-C (strike 95o) and Block D (strike 117o). Sub-blocks have been used for a correct volume estimate.
Table 17.12 Tailings Block Model Details Type Minimum Coordinates Maximum Coordinates User Block Size Min. Block Size Y 2 069 600 2 071 200 25 6.25 X 753 400 756 600 25 6.25 Z 480 672 3 0.75
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Estimation All of the delimited domains were estimated independently in 2008, and updated in 2009. OK was used for each the pads using all 1.5 m samples within that pad. When a sample was located at the intersection of two pads, its centroid determined to which pad it belonged. The continuity of the grade through the limits of the individual stacks did not suggest that the physical stacks limits are statistical limits. What is more, the search ellipse average range of 50-65 m means that the neighbouring stacks having limited influence on a block. Kriging parameters have been determined from the variography. Search parameters are concordant with the kriging ellipsoid. A three pass search strategy was adopted to maximise the interpolated blocks without compromising interpolation quality.
Table 17.13 Tailings Grade Interpolation Parameters Block A 1 Kriging Ellipsoid Ellipsoid bearing ( ) Ellipsoid dip ( ) Ellipsoid plunge ( ) Major/semi-major Major/minor Variogram model C0 (nugget): Sill1: Range1: Sill2: Range2: Sill3: Range3: Top-cut Major search radius Minor search radius Informing samples Major search radius Minor search radius Informing samples Major search radius Minor search radius Informing samples 5 ppm 65 m 20 m 25-50 130 m 40 m 20-50 250 m 75 m 10-50 6.15 ppm 50 m 20 m 25-50 100 m 40 m 20-50 250 m 75 m 10-50 4 ppm First Pass 65 m 20 m 25-50 Second Pass 130 m 40 m 20-50 Third Pass 250 m 75 m 10-50 250 m 75 m 10-50 130 m 40 m 20-50 160 160 25-50 200 200 25-50 65 m 20 m 25-50 80 80 25-50 100 100 25-50 3.3 ppm
o o o
Block B1
Block C1 and C2
Block D1 and D2 25 0 0 1.6 2.7 1 Spherical 0.11 (36%) 0.19 65 m
Block D2
Block D1
97 0 0 1.35 3 2 Spherical 0.15 (28%) 0.2 25 m 0.18 65 m
7 0 0 1 2.5 2 Spherical 0.21 (18%) 0.34 21 m 0.6 50 m
5 0 0 1 1.5 2 Spherical 0.15 (38%) 0.12 22 m 0.12 68 m
0 0 0 1 1 3 spherical 0.15 (15%) 0.26 4m 0.33 30 m 0.26 100 m
0 0 0 1 1 3 spherical 0.07 (7%) 0.28 4m 0.31 38 m 0.34 80 m
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Model Validation The final grade estimate was validated statistically and graphically against the input drill hole samples and revealed a good correlation (Figure 17.9).
Figure 17.9 Tailings Model: Comparison Between Block Model and Drill Hole Data (2007/8 model)
Comparison of block-model result with drill-holes samples - per individual stacks
4.5 Block-model Au FA Average Drill-hole Au FA Average Number of samples per stack 160
140
3.5
120
3 Number of samples 100

Au ppm
2.5 80 2 60 1.5 40
0.5
20
0 63 64 65 66 69 70 71 73 75 76 77 78 79 80 82 83 84 85 86 87 88 89 90 91 92 93 81.1 81.2 93.1 93.2 93.3 99 100 101 102 103
Individual stacks
Preliminary Reconciliation with Production Data 2007/2008 Model Tonnage A preliminary reconciliation with plant data was carried out in 2008 in order to verify the tailings resource model, as well as to support further potential tailings resources. Average re-calculated wet density is estimated at 1.69, but is quite variable between 1.4 and 3.0. Tonnages from block models are dry tonnes, whereas production data tonnes are wet tonnes, before leaching. Using an estimated 7% moisture, the wet bulk density for the block models is 1.6. Both densities are quite comparable, although the tonnage estimated by the plant is slightly higher (approximately 5%). Therefore tonnages can be considered as comparable, and cross-validated. Grades Individual grades are difficult to compare with precision, since: Production data are calculated from mass balance, in cyanidable gold Leaching does not apply to individual stacks, but typically to a set of three stacks. Total ratio of Au_Fa 3DModel (dry weight) / Au_Cy calculated (wet weight) = 1.33
Therefore only overall average grades have been compared, with results as follows:
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After doubtful ratios have been discarded, the average ratio of Au_Fa 3DModel (dry weight) / Au_Cy calculated (wet weight) = 1.37.
Production grades are calculated using mass. Therefore AuFa/AuCy ratio should be corrected by the density difference ratio (1.5/1.69 = 13%). The corrected ratio from mass difference, Au FA / Au Cy corr .= 1.18. This difference between Au Cy and Au FA is slightly higher than that typically existing between Fire Assay and Cyanidable Au at Hassai, but is considered acceptable. 17.4.1.7 Confidence Classification and Reporting in Compliance with NI 43-101
No issues were noted with the topographic survey. There is a significant volume uncertainty at the bottom of each pad, and the lower portion of every pad has been classified Inferred. Assays are considered reliable. Sample size may be a bit small and may induce some imprecision. Confidence classification of resources for the model has, therefore, been based largely on kriging quality, as follows: Measured Resource: first pass interpolation Indicated Resources: second pass Interpolation and nearest sample < 50 m Inferred Resource or geological potential: third pass Interpolation.
Materials at the base of the pads have been classified as inferred: grade is properly estimated but volume uncertainty is high. Block C and part of Block A have been reshaped by bulldozer. Volume has been conserved, and average grades are conserved, although the detailed grade distribution has been altered and traceability is damaged. These areas have therefore been re-classified as Indicated and Inferred, instead of Measured, Indicated and Inferred. Low confidence (Inferred) resource for a portion of Block A1, corresponds to an area that has not been drilled. Block D has been completed and re-estimated in 2009. It is a large, coherent body, modelled with a significant quantity of assay data, and a conservative density. Its classification is based on grade interpolation quality, measured here using KE. KE, derived from the Block and Kriging variances, is a measure of the variability of the estimate and the choice of parameters of estimation. Block estimates with a KE < 0.33 are classified as Inferred, KE between 0.33 and 0.66 as Indicated, and KE > 0.66 as Measured. The estimated block grades show good correlation with adjacent composite grades. No cut-off was applied, as the residue appeared to be a relatively homogeneous bulk body, where selective mining is unlikely. Final resource estimates have been classified as Mineral Resources in line with NI 43-101 standards, as provided in Table 17.14.
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Table 17.14 Hassai Tailings Resources (Drilled, as of 31 December 2009) Category Measured Indicated Total M+I Inferred Total Inferred Notes: Grades based on fire assay gold (Intertek Jakarta). No cut-off applied, tailings being considered as a bulk deposit. Tonnage (kt) 3 832 2 846 6 677 1 178 1 178 Gold Grade (g/t) 1.88 1.97 1.92 2.11 2.11 Contained Gold (oz) 231 075 180 223 411 298 78 252 78 252
17.4.2
Additional External Areas: Heaps 1-63, 67-71
Historical heaps (numbers 1 to 63 and 67 to 71 (partially)) were removed and deposited in three external sites as follows: Hassai Hadaymet Road Hassai Banat 27 500 m2 55 800 m2 44 500 m2
Total for the three areas is about 127 500 m2, with an average height of 1-3 m of unconsolidated material, and their volume and tonnage are difficult to assess by traditional drilling methods. Tonnage potential is thought to be limited and has not been classified as a resource. 17.4.3 Material Stacked in 2008 2009 (Heaps 114 to 136)
CSA visited site between the dates 25-31 August 2010 to review resource estimates of material in heaps 114-136 which were not accessible for drilling in 2008. All information within this section summarises the submitted CSA report Hassai Heap Leach Remnant Resources (Report #R230.2010, dated 16 September 2010). The review utilised weightometer tonnages and conveyor sampling grades recorded during stacking, and a comparison made with mining grade control data. The weightometers used are situated on both the Quartz and SBR conveyors ahead of agglomeration. Grade samples are collected by a cross-feed automatic sampler on the Quartz feed line, while grab samples are taken on the SBR feed conveyor. Gold analysis is undertaken at the mine laboratory, utilising cyanide extraction rather than fire assaying techniques. CSA noted that the design and operation of the automatic sampler is likely to lead to unrepresentative samples with potential to be biased low if segregation occurs on the belt. CSA further commented that the location of the site laboratory close to the plant, and the poor dust management was likely to lead to contamination of samples. CSA recommended that the the laboratory be moved to a clean dust free air conditioned environment; that it be equipped with appropriate dust control equipoment, and that regular round robin checks with other laboratories be completed.
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Hassai leach heaps are typically 200-300 m long by 50 m wide, with up to three layers of material placed, successively on top of geotextile liners. Following depletion, the top of the pad is lowered by approximately a third and the material is pushed out to lengthen the base on which the next heap is to be stacked. This is done to ensure that there is sufficient room for moving the conveyor and stacking equipment around, and for vehicular access. A new layer of geotextile is laid on top of the modified pad, and then the next heap of material is put on top of that and irrigated. At the time of writing, a third layer has been added to about a third of the stacks. Modifying the heap shapes after stacking without complimentary resurveying impacts resource estimation accuracy, as the exact location of material is unknown. Some of the moved material ends up in front of the next stack, and other portions are used to form bunds. Records of the amount of material moved by bulldozing and grading are not kept. For these reasons, the resource classification used in this case is indicated. In addition to this, occasionally material from exhausted heaps is recycled and used to create a permeable barrier above the geotextile fabric. No records of tonnage moved are kept of material that is reused in this manner, but is thought to be less than 2% of the total stack volume. Resources contained in the heaps are estimated on the basis of conveyor weights and sampled grades. Comparison with grade control data, points to known deficiencies in both the grade control and mill data. These deficiencies include: Grade control samples are collected by open-hole blast-hole drilling, which typically produces poor quality samples. Grade control samples are taken at the rate of about 1 per 20 tonnes for 1x5 m drilling and 1 per 30 tonnes for 1.5x5 m or 2.5x2.5 m spaced drilling, whereas conveyor sampling is at a rate of about 1 per 10 tonnes of stacked material. Samples are combined into a daily composite which is subsequently split and assayed. QAQC sampling of the conveyor samples and cyanide leachate includes regular checks against Certified Reference Material (CRM) and duplicate sampling, whereas grade control QAQC consists of the inclusion of some blanks in the laboratory, but doesnt include field duplicates and insertion of CRMs in the field. Weights in the mill are measured directly at multiple points, whereas weights for grade control purposes are derived from dig plan volumes and application of sparsely taken SG measurements. The mill recycles some material from old heaps to form permeable protective layers above the geotextile. This material is not always accounted for in the trucking database, and in particular if it was derived from a depleted heap rather than one of the tailings storage areas. The leachate travels through up to three heaps before being stripped of gold. Careful gold assays and flow volume measurements as well as actual metal produced, allow recoveries to be estimated from each of the heaps. However the system is not perfect and some heaps were indicated to contain very low grades that are less than what were predicted to remain using experimental recoveries. Both grade control and stacked grades are based on cyanide soluble gold assays rather than fire assays. The two methods provide significantly different results.
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There are significant differences between grade control and stacked grades for individual heaps, but ten-point moving averages show that, overall, the mill weights are about 12% higher than the grade control weights. CSA believes that whereas the individual errors can be high, the cumulative error is within that expected for an Indicated Resource classification. In particular, this is so because the full resource can be sighted on surface. Figure 17.10 shows the grade control versus stacked contained metal. The cumulative difference error in contained gold of the grade control sampling with respect to the Mill stacking sampling is less than 10%.
Figure 17.10 Grade Control v Stacked Grade
Fifty-four of the exhausted heaps were sampled using auger drill holes during 2007 and 2009 by Arethuse Consulting. Measured, Indicated and Inferred Resources have been estimated for these heaps by Arethuse and are presented in Section 17.4.1 and the end-2009 resource tabulation. Fire assays with appropriate QAQC controls were used to inform these resource estimates, whereas heaps that have not been drilled are assayed for cyanide soluble gold only. Figure 17.11 shows comparative assays for remnant resources in heaps where auger drilling, grade control and Mill stacking data have been used. The auger drilling grades have been estimated using fire sssay whereas grade control and mill stacking samples have been assayed for cyanide soluble gold. There is a strong similarity between the results. The auger drilling results are better controlled, but all results exhibit similar grade ranges. The remnant resources in the remaining exhausted heaps, prior to reshaping, have been estimated using the mill balance and stacking data, and are shown in Table 17.15.
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Figure 17.11 Comparison of Remnant Resource Grade for Auger Drilling, Grade Control and Mill Stacking Data
Table 17.15 Hassai Tailings from Active Heap Material, heaps 114-136, CSA September 2010 (Cyanidable Au) Category Measured Indicated Total M+I Inferred Total Inferred Tonnage (kt) 514 514 1 329 1 329 0.91 0.91 1.42 1.42 14 600 14 600 58 800 58 800 Gold Grade (g/t) Contained Gold (oz)
17.4.4 17.4.4.1
Additional Material to be Stacked, 2010-2012 Material that is Currently Being Leached (Heaps 137-141)
It is not possible to provide an Indicated resource estimate for heaps that have not completed the leaching process. For the purposes of this exercise, heaps that are currently being leached and that have an unknown final leach recovery may be assigned to Inferred Resources as, although their location is known, and the input grade and tonnage has been satisfactorily measured, the final recovery and remaining grade can only be broadly estimated. The grades presented are in situ at the completion of stacking (Table 17.16), but will decline during leaching.
Table 17.16 Material Currently Under Irrigation (Heaps 137-141, Cyanidable Au) Category Inferred Total Inferred Notes: Resources estimated by S. McCracken, QP. Au values represent cyanidable gold. Tonnage (kt) 586 586 Gold Grade (g/t) 1.69 1.69 Contained Gold (oz) 30 700 30 700
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17.4.4.2
Material that is Being Stacked but that has not yet been Exposed to Cyanide
This material is currently included within the existing Mineral Resources and Mineral Reserves. Until stacking of new heaps is completed it is not possible to estimate accurately either pre-irrigation tonnes and grade or the amount of remnant resources they might contain. In order that these planned heaps can be used as resources in the CIL scoping study, CSA recommends that two separate but sequential recoveries are applied to the in-pit resources. The first estimates recovery by the heap leach process and the second estimates the later recovery by the CIPL process. 17.4.4.3 Heaps from Planned/Scheduled Production that will be Completed Prior to Commissioning of the CIL Plant
As above, this material is included within existing Mineral Resources and Mineral Reserves. In order to convert this to tailings material available for reprocessing as part of the CIL Preliminary ssessment, sequential recoveries are applied to in-pit resources. 17.5 17.5.1 MINERAL RESOURCE STATEMENT Overall AMC Resources 31 December 2009
Mineral Resources for Hassai Mine as of 1 January 2010 have been prepared by Remi Bosc of Arethuse, a Member of the European Federation of Geologists and a qualified person under NI43-101. The Mineral Resources for gold mineralisation have been tabulated by Ore Type in Table 17.17 to Table 17.20, and combined for reporting by category in Table 17.21.
Table 17.17 Oxide Mineral Resources, 31 December 2009 Ore Type Category Indicated Location Hadal Awatib East Hassai North Other SBR Oxide Total Ind. Inferred Hadal Awatib East Hassai North Other SBR Total Inf. Notes: Grades based on cyanide soluble gold (Hassai mine laboratory). Cut-off grade: 1g/t HadalAwatib East; 1.5 g/t Hassai North and Other SBR deposits. Tonnage (kt) 330 231 1 016 1 577 69 9 628 706 Grade (g/t Au) 9.28 4.47 5.69 6.26 8.53 3.17 5.52 5.79 Metal (oz Au) 98 400 33 200 186 100 317 700 18 900 900 111 700 131 500
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Table 17.18 Quartz Ore Mineral Resources, 31 December 2009 Ore Type Category Location Kamoeb South Kamoeb East Kamoeb South Kamoeb East Kamoeb West Kamoeb North Total Inf. Notes: Grades based on cyanide soluble gold (Hassai mine laboratory) and fire assay gold (Intertek Jakarta). Cut-off 0.8 g/t. Table 17.19 Tailings Mineral Resources, 31 December 2009 Ore Type Category Measured Indicated Tailings Total M+I Inferred Total Inf. Notes: Grades based on fire assay gold (Intertek Jakarta). No cut-off applied, tailings being considered as a bulk deposit. Table 17.20 Stockpile Mineral Resources, 31 December 2009 Ore Type Ores Quartz Ores Acidic Total Indicated Note: Category Indicated Tonnage (kt) 3 219 664 886 Grade (g/t Au) 1.77 3.22 5.92 5.24 Metal (oz Au) 150 22 700 126 400 149 250 Hassai Heap leach Location Tonnage (kt) 3 832 2 846 6 677 1 178 1 178 Grade (g/t Au) 1.88 1.97 1.92 2.11 2.11 Metal (oz Au) 231 075 180 223 411 298 78 252 78 252 Tonnage (kt) Indicated Total Ind. Quartz Inferred 3 309 514 3 823 207 96 234 2 045 2 582 Grade (g/t Au) 3.63 5.01 3.82 3.58 5.91 2.42 2.47 2.69 Metal (oz Au) 386 600 82 900 469 500 23 800 18 200 18 200 162 800 223 000
Grades based on Cyanide soluble gold (Hassai mine laboraotory).
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Table 17.21 Hassai Mine Combined Gold Mineral Resources, 31 December 2009 Category Measured Indicated Total M+I Inferred Total Inf. Notes: Mineral Resources estimated and classified according to CIMM categories by Remi Bosc, QP. Assay methods and cut-off grades as shown in table. Tonnage (kt) 3 832 9 132 12 964 4 466 4 466 Grade (g/t Au) 1.88 3.81 3.23 3.03 3.03 Metal (oz Au) 231 075 1 116 650 1 347 725 432 752 432 752
Mineral Resources for VMS mineralisation were similarly compiled by Remi Bosc of Arethuse and are reported by location and category according to NI43-101 in Table 17.22.
Table 17.22 VMS Mineralisation Mineral Resources, 31 December 2009 Category Area/Type HA East, Cu>2% HA East, Cu<2% Indicated HS South, Supergene HS South, Primary Total Indicated HA East, Cu>2% HA East, Cu<2% Inferred HS South, Supergene HS South, Primary Total Inferred Notes: HA = Hadal Awatib, HS = Hassai South Mineral Resources estimated and classified according to CIMM categories by R Bosc, QP Grades based on fire assay for gold, and triple acid digest/AAS finish for base metals; at Intertek, Jakarta Cut-off grade 0.8% copper equivalent (Cueq), where Cueq = Cu(%) + 0.63xAu(g/t) The above relationship uses metal prices of $750/oz gold and $2.00/lb copper, and takes account of metallurgical recoveries. Tonnes (kt) 508 2 390 2 898 2 930 25 400 1 530 18 620 48 480 0.93 0.75 1.23 2.29 1.49 1.33 1.27 2.50 0.81 2.75 1.37 1.19 86 700 71 000 1 001 000 112 000 894 000 2 078 000 36 800 73 000 206 000 42 000 255 000 576 000 Gold (g/t) 0.78 0.96 Copper (%) 2.80 0.95 Gold (oz) 12 000 74 000 Copper (t) 14 200 22 600
17.5.2
Additional Heap Leach Tailings Resources
Additional heap leach tailings resources have been estimated under the supervision of Simon McCracken of CSA, a Qualified Person under NI43-101, and are reported in Table 17.23.
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Table 17.23 Hassai Tailings from Active Heap Material, Heaps 114-136, CSA September 2010 (cyanidable Au) Category Measured Indicated Total M+I Inferred Total Inferred Notes: Resources estimated by S.McCracken, QP Grades based on material balance accounting, with grades determined as cyanidable gold. Tonnage (kt) 514 514 1 329 1 329 0.91 0.91 1.42 1.42 14 600 14 600 58 800 58 800 Gold Grade (g/t) Contained Gold (oz)
17.5.3
Mineral Reserve Statement
Mineral Reserves as of the end of 2009 have been determined under the supervision of Bill Plyley, of La Mancha, a Qualified Person under NI43-101, and are reported in Table 17.24. These reserves are determined in relation to the continued mining and processing of heap leach ore: no reserves have been determined for the proposed CIL or VMS phases, since the necessary resource, mining, geotechnical, processing and engineering studies have not been completed in sufficient detail to allow sufficient confidence in material movements, costs and recoveries to be determined.
Table 17.24 Hassai Mine Mineral Reserves, 31 December 2009 Category Probable Notes: Mineral Reserves prepared under supervision of Bill Plyley, QP Cut-off grade takes account of metal price ($750/oz Au), recoveries and operating costs, and varies according to material type. Typically it is 1.0 g/t Au. Tonnage (t) 2 557 000 Gold Grade (g/t) 4.99 Gold (oz) 410 400
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18. 18.1
OTHER RELEVANT DATA AND INFORMATION MINING STUDIES GENERAL STATEMENT REGARDING USE OF INFERRED RESOURCES
As discussed in Section 1.4, the NI43-101 regulations do not permit the use of Inferred Resources in public reporting of mining studies and economic analysis for projects, such as Ariab, that have advanced to at least a preliminary feasibility level. However, La Mancha has applied for and been granted an exemption under Section 9.1 of NI 43-101 in order to prepare a preliminary assessment of the economic potential of the Inferred Mineral Resources to form the foundation of future developments of the Ariab gold project. Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves and there is no certainty that the preliminary assessment will be realised. Therefore, the terms Mining Inventory and Potentially Mineable Material have been used in this report to identify and distinguish Mineral Resources including Inferred Mineral Resources falling within conceptualised mine plans from NI43-101 compliant Mining Reserves. 18.2 18.2.1 CSA MINING STUDIES KAMOEB Mining Study Background
CSA carried out the mining portion of a scoping study evaluation of AMCs Kamoeb quartz vein gold deposits, various SBR acidic ore stockpiles and approximately 12 Mt of heap leach tailings dumps, the aim of which was to develop a mining strategy for the Hassai CIL gold plant scoping study. The scope of work included examination of production at Kamoeb deposit and SBR acidic ore stockpiles and tailings dumps for scheduling and financial analysis. The Kamoeb deposit was partially mined between 2003 and 2007. Mining at the deposit resumed in early 2010. The Kamoeb deposit has been divided into two main areas namely Kamoeb South and Kamoeb North. Kamoeb South is sub-divided into Kamoeb East and Kamoeb South while Kamoeb North is sub-divided into Kamoeb North and Kamoeb West. At this stage Kamoeb North contains only inferred resources while Kamoeb South contains predominantly Indicated resources. The Scoping study included the inferred resources at Kamoeb North to delineate Potentially Mineable Material and the Indicated resources at Kamoeb South to delineate probable reserves so that mining operations may progress at Kamoeb South. 18.2.2 Study Approach
The following work was undertaken: Mining method selection Preliminary estimation of operating costs Pit optimisations to determine practical pit limits whilst maximizing the project value, using Whittle Four-X software Sensitivity analysis to determine what factors may influence the project Pit design on selected Whittle shells Reporting of inventories within the pit design
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Generation of mining schedules using the pit inventory information Generation of scoping level operating and capital cost estimates. Mining Methods Kamoeb South
18.2.3 18.2.3.1
Kamoeb South is composed of relatively continuous veins, dipping 50o to 70o to the south, while Kamoeb East comprises a set of veins where gold has been remobilised by late shearing events. Despite a high density of drilling, the geological continuity is poor at Kamoeb East. The ore zone has been outlined for approximately 150 m below the current workings, and remains open at depth. Based on the shallow depth, shape and orientation of the orebody, the fact that it has already been exposed extensively at the Kamoeb East and Kamoeb South areas, and that it is situated in oxidised material, a surface mining method was determined to be the safest and most cost-effective method of mining Kamoeb South deposit. Open Pit Analysis Based on the fact that the Hassai gold mine has been in operation for many years as an open pit operation, has a large pool of skilled and semi-skilled labour currently working on the operation and an existing open pit fleet of 60 t trucks and 120 t excavators, a conventional open pit mining method was considered. 18.2.3.2 Kamoeb North
Kamoeb West, despite being sheared, appears to be a set of two relatively continuous, but thin veins. The ore zone has been outlined for approximately 100 m below surface, and remains open at depth. Kamoeb North is classified as inferred at this stage and will require further exploration drilling to increase the classification of the deposit to allow for reserve estimation. Based on the shallow depth, shape and orientation of the ore body, the fact that it outcrops along a ridge of hills, and that it is situated in oxidised material, a surface mining method was determined to be the safest and most cost-effective method of mining the Kamoeb North deposit. Open Pit Analysis Again, conventional open pit mining was considered, taking account of the existing fleet and local operator experience. 18.2.4 Pit Optimisation
Pit optimisations were carried out for both Kamoeb South and Kamoeb North. Analyses were carried out on an ore production rate of 525 kt/a.
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18.2.4.1
Approach
Whittle 4X pit optimisation software (Whittle) was used to generate optimal pits for the deposits, based on analysis of the resource model. Whittle allows the generation of a series of nested optimal pits, where each successive outline is for a slightly higher product price than the previous one. This is done for a range of prices, from the lowest for which ore can be profitably mined to the highest expected in the future. These pits are then interrogated at the base case costs and prices to establish their respective values. Selection of the optimal pit is normally based on maximising the project Net Present Value (NPV), but maximum cash flow can also be used as a selection criteria. As no capital has been included in the Whittle analysis, NPVs are only Operating NPV and therefore should be used only for relative ranking purposes. The Operating NPV is often overstated. Whittle incorporates time-discounting of money and assumes two extreme mining sequences (best and worst cases) for optimal pit selection. The best-case mining sequence mines the nested pits, starting with the smallest pit outline and mining subsequent pits until the largest pit is mined out. The worstcase mining sequence mines to the final pit outline bench by bench. The best case scenario returns a higher NPV due to the increased cash flow during the earlier years as a result of mining internal pits with lower strip ratios and/or higher grades. In consultation with AMC, a balance of maximum DCF and ore tonnes was used to pick the optimal pit shells to be used as the basis for the ultimate pit design for both deposits. 18.2.4.2 Optimisation Input Parameters
Pit optimisation was carried out using all classified mineralisation (Measured, Indicated and Inferred) contained within the resource models. A list of financial and physical parameters were supplied to CSA Global by AMC and used as inputs for the Whittle optimisations. Table 18.1 and Table 18.2 outline the various input parameters used in the Whittle optimisations for the Kamoeb deposits. The input parameters for the Kamoeb South deposit assumed that mining starts in 2010. Due to the fact that the CIL plant will be commissioned in 2013, the processing method utilised for gold extraction from Kamoeb South ore is heap leaching for the first 3 years and CIL for the remainder of the life of the deposit. Mining at Kamoeb North deposit will commence in 2014 and ore processing method is thus assumed to be CIL for the life of the deposit.
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Table 18.1 Kamoeb South Whittle Input Parameters
AriabMiningCompanyKamoebProject PitOptimisationInputDataKamoebSouthDeposit
Note: All costs & prices in US$ Metal price Gold US$/oz Royalties & other % Payable US$/oz net US$/gram net Throughput rate (Mtpa) Operating Costs - Ore Cost (HL) Processing Ore transportation cost Operational fixed costs Mining cost ore increment Total process cost Units US$/t ore US$/t ore US$/t ore US$/t ore US$/t ore Year 1 1014 7.9 92.1 934 30.03 0.526 Quantity 19.04 1.61 18.40 1.47 40.52 Year 2 950 7.9 92.1 875 28.13 0.520 Quantity 19.04 1.61 19.12 1.47 41.24 Year 3 950 7.9 92.1 875 28.13 0.524 Quantity 19.04 1.61 19.39 1.47 41.51 Year 4 900 7.9 92.1 829 26.65 0.525 Quantity 20.01 1.61 5.77 1.47 28.85 Year 5 850 7.9 92.1 783 25.17 0.525 Quantity 20.01 1.61 5.77 1.47 28.85 QRZ line SBR line Allocation of general fixed expenses : Year 1 60.2% 39.8% Year 2 62.5% 37.5% Year 3 63.4% 36.6% Year 4 32.80% 67.20%

Total annual general fixed expenses Ore > 2.25 g/t (US$) 16,057,213 9,227,539
Operating Costs - Ore Cost (CIL) Processing Ore transportation cost Operational fixed costs Mining cost ore increment Total process cost
Units US$/t ore US$/t ore US$/t ore US$/t ore US$/t ore
Quantity 20.01 1.61 5.77 1.47 28.85
Quantity 20.01 1.61 5.77 1.47 28.85
Quantity 20.01 1.61 5.77 1.47 28.85
Quantity 20.01 1.61 5.77 1.47 28.85
Quantity 20.01 1.61 5.77 1.47 28.85 QRZ line SBR line
Allocated annual general fixed expenses (US$) 9,659,644 6,397,569 10,037,755 6,019,458 10,178,897 5,878,316 3,026,633 6,200,906
Annual Quarts ore production 525,000
Selling costs - Product Cost Cost of refining Total selling cost
Units US$/gram au US$/gram au
Quantity 0.053 0.053
Allocated general fixed expenses per tonne ore processed QRZ line 18.40 19.12 19.39 5.77
Total annual general fixed expenses Ore < 2.25 g/t (US$) Stockpiling Ore rehandling cost Units US$/t rehandled Quantity 0.28 Quantity 0.28 Quantity 0.28 Quantity 0.28 Quantity 0.28 Allocation of general fixed expenses : Mining cost - average, including CAPEX Mining cost - waste and portion of ore Total - Mining cost Increment per 10m additional depth Units US$/ t mined US$/ t mined US$/ t mined Allocated annual general fixed expenses (US$) Whittle Schedule Parameters Ore production rate Annual discount rate Mtpa % 0.526 12.4 0.520 12.4 0.524 12.4 0.523 12.4 0.523 12.4 Annual Quarts ore production Pit slopes Mining dilution Mining recovery degrees % % 38 20.0 95.0 38 20.0 95.0 38 20.0 95.0 38 20.0 95.0 38 20.0 95.0 Allocated general fixed expenses per tonne ore processed QRZ line Metallurgical recoveries % Units Gold recovery - Oxidised & Fresh (Au>2.25g/t) Gold recovery - Oxidised & Fresh (Au<2.25g/t) % % All rock types 80.00 0.00 All rock types 80.00 0.00 All rock types 80.00 0.00 All rock types 92.40 92.40 All rock types 92.40 92.40 5.77 5.77 5.77 5.77 525,000 QRZ line Other 3,027,786 6,199,752 3,027,786 6,199,752 3,027,786 6,199,752 3,027,786 6,199,752 Amount 1.99 1.99 Amount 1.99 1.99 Amount 1.99 1.99 Amount 1.99 1.99 Amount 1.99 1.99 QRZ line Other Year 1 32.8% 67.2% Year 2 32.8% 67.2% Year 3 32.8% 67.2% Year 4 32.8% 67.2% 9,227,539
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Table 18.2 Kamoeb North Whittle Input Parameters
AriabMiningCompanyKamoebProject PitOptimisationInputDataKamoebNorthDeposit
Note:Allcosts&pricesinUS$
Metal price Gold US$/oz Royalties & other % Payable US$/oz net US$/gram net Throughput rate (Mtpa) Operating Costs - Ore Cost Processing Ore transportation cost Operational fixed costs Mining cost ore increment Total process cost Selling costs - Product Cost Cost of refining Total selling cost Mining cost - average, including CAPEX Mining cost - Waste and portion of ore Total - Mining cost Increment per 10m additional depth Units US$/t ore US$/t ore US$/t ore US$/t ore US$/t ore Units US$/gram au US$/gram au Units US$/ t mined US$/ t mined US$/ t mined Year 1 1014 7.9 92.1 934 30.03 0.526 Quantity 20.01 1.61 5.77 1.47 28.85 Quantity 0.053 0.053 Amount 1.99 1.99 Year 2 950 7.9 92.1 875 28.13 0.520 Quantity 20.01 1.61 5.77 1.47 28.85 Quantity 0.053 0.053 Amount 1.99 1.99 Year 3 950 7.9 92.1 875 28.13 0.524 Quantity 20.01 1.61 5.77 1.47 28.85 Quantity 0.053 0.053 Amount 1.99 1.99 Year 4 900 7.9 92.1 829 26.65 0.523 Quantity 20.01 1.61 5.77 1.47 28.85 Quantity 0.053 0.053 Amount 1.99 1.99 Year 5 850 7.9 92.1 783 25.17 0.523 Quantity 20.01 1.61 5.77 1.47 28.85 Quantity 0.053 0.053 Amount 1.99 1.99 Allocated general fixed expenses per tonne ore processed QRZ line Whittle Schedule Parameters Ore production rate Annual discount rate Pit slopes Mining dilution Mining recovery Metallurgical recoveries % Units Gold recovery - Oxidised & Fresh (Au>2.25g/t) Gold recovery - Oxidised & Fresh (Au<2.25g/t) % % All rock types 80.00 92.40 All rock types 80.00 92.40 All rock types 80.00 92.40 All rock types 80.00 92.40 All rock types 80.00 92.40 Mtpa % degrees % % 0.526 12.4 38 20.0 95.0 0.520 12.4 38 20.0 95.0 0.524 12.4 38 20.0 95.0 0.523 12.4 38 20.0 95.0 0.523 12.4 38 20.0 95.0 5.77 5.77 5.77 5.77 QRZ line SBR line Allocation of general fixed expenses : Year 1 32.8% 67.2% Year 2 32.8% 67.2% Year 3 32.8% 67.2% Year 4 32.8% 67.2% Total annual general fixed expenses (US$) 9,227,539
Allocated annual general fixed expenses (US$) QRZ line SBR line 3,027,786 6,199,752 3,027,786 6,199,752 3,027,786 6,199,752 3,027,786 6,199,752
Annual Quarts ore production 525,000
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18.2.4.3
Resource and Mining Models
Kamoeb South and Kamoeb North The resource models used as the basis for pit optimisations are Surpac models supplied by Arethuse. The Kamoeb South and Kamoeb North resource models were originally a single model that was split into two models for ease of use. The resource models are located on a rotated grid. The resource model extents are recorded in Table 18.3. The supplied resource models included waste for pit optimisation.
Table 18.3 Kamoeb South and Kamoeb North Resource Model Extents Block Model Parameters X Minimum Coordinates Maximum Coordinates Parent Block Size (m) Minimum block size (m) Number of cells Rotation 2 061 820 2 063 420 10 2.5 30 -30 Y 750 640 752 880 10 2.5 36 0 Z 300 780 5 1.25 40 0
Prior to optimisation, the resource models required a number of operations performed within Datamine to make them suitable for application within Whittle. These models needed to be prepared to allow for the differing mining costs, cost adjustment factors and sensitivities that were required to be analysed. The following processes were applied: Any absent or negative geological or physical values were resolved Unnecessary geological flags or attributes were removed (to expedite the optimisation process) Differing rock type codes were created to distinguish ore from waste within Whittle Bulk tonnes were created for each block Metal content for each block were created as applicable A mining cost adjustment factor (MCAF) attribute as created for use within the Whittle optimisation A processing cost adjustment factor (PCAF) attribute was created for use within the Whittle optimisation.
This process created the block models 4xks00.i.dm and 4xkn00.i.dm that could be used for the Whittle optimisations. The models were then imported into Whittle. Cross-checks were performed and these confirmed that the engineering model quantities (Whittle input quantities) matched those of the original resource model. 18.2.4.4 Topography
A single surface topography covering Kamoeb South and Kamoeb North was supplied by AMC.
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All material above the topographical files was coded as air. 18.2.4.5 Pit Slopes
At the time that the Whittle optimisation was completed no detailed geotechnical data was available for Kamoeb deposit. An overall slope angle of 38o was assumed to be suitable for the pit optimisation in order to allow for ramps and a minimum pit base width of 20 m to allow movement of mining equipment on the pit floor. 18.2.4.6 Mining and Processing Costs
This study assumes that AMC undertakes owner-mining operations as at present. The costs used for the Whittle optimisations are fully allocated costs which cover all direct fixed costs associated with the ore and waste extraction and ore processing. These costs are expressed as a cost per tonne. The remaining fixed costs of investment and overhead and indirect costs (mine management costs, head office costs etc) are expressed as an annual fixed cost which is divided between the SBR and quartz mining operations. Table 18.4 summarises the mining costs and Table 18.5 the processing costs applied to the Whittle optimisations.
Table 18.4 Mining Costs Applied in the Whittle Optimisations Cost Type Fully Allocated Costs ($) Waste 1.99 Ore 3.46
No bench-by-bench MCAF was applied to the reference mining cost in the Whittle optimisations as all material is in the shallow oxidised zone.
Table 18.5 Processing Costs Applied in the Whittle Optimisations Cost Type Fully Allocated Costs ($) Processing 19.04 Ore Transportation 1.61
18.2.4.7
Mining Dilution
Ore recovery can be affected by: Ore zone geometry and regularity Effectiveness of grade control delineation of ore on the working bench floor Mine planning and scheduling Proper control of blasting Proper control of loading operations Proper haul truck dispatch and dump control.
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Based on experience at the current mining operations at Kamoeb, a 20% mining dilution factor was applied to the project within Whittle to account for dilution that may be expected to occur during the course of mining. 18.2.4.8 Mining Recovery
Mining dilution can be impacted by: Mining width Loading equipment selection and dimensions Ore zone geometry and regularity Relative friability between the ore and the host rocks Treatment of thin waste bands within the ore zones Good geological and grade control Good control of drilling and blasting design and practice Finding the right trade-off between ore recovery and dilution Employee training and awareness.
Based on experience at the current mining operations at Kamoeb, a 95% mining recovery factor was applied to the project within Whittle to account for the amount of mineralised material that might be lost during mining operations. 18.2.4.9 Metal Prices
Base Case gold prices used for the optimisation study varied between $1014/oz in Year 1 gradually decreasing to $850/oz in Year 5. 18.2.4.10 Cut-off Grades
Cut-off grades are determined in the optimisation on an individual block basis. Each of the deposits has separate recovery and process costs attributed. The block value is calculated from the metal price, recoveries, grades and process costs. 18.2.4.11 Discount Rate
A discount rate of 12.4% was applied to calculate the discounted cash flow for the optimisation. 18.2.4.12 Optimisation Results
Optimisation was carried out to determine the approximate mine life for the Project. Indicated material was included in the Base Case optimisations at Kamoeb South and Inferred material was included in the Base Case optimisations at Kamoeb North. The base metal prices and production constraints were also applied.
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After consultation with AMC, a balance of maximum DCF and ore tonnes were used to pick the optimal pit shells to be used as the basis for the ultimate pit design for both deposits. The selected optimisation shells were as follows: ` Kamoeb North, 525 kt/a Kamoeb South, 525 kt/a 2.58 Mt @ 3.66 g/t Au, SR of 5.43:1 Operating NPV of $63.34 M Total operating cost of $47.50/t ore. 1.31 Mt @ 2.56 g/t Au, SR of 5.47:1 Operating NPV of $26.30 M Total operating cost of $40.32/t ore.
Figure 18.8 and Figure 18.9 show plan views of the selected Whittle shell for each case.
Figure 18.1 Kamoeb South 525 kt/a Optimisation Shell
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Figure 18.2 Kamoeb North 525 kt/a Optimisation Shell
18.2.4.13
Sensitivity Analysis
Sensitivities on mill feed tonnes were performed on both deposits, showing the following: Kamoeb South Due to the relatively high mining strip ratio, varying the mining cost has a relatively low impact on the size of the shell. Unit processing cost variations of +20% and -10% have a moderate impact on the size of the shell. Variations in metal price and metallurgical recovery had a significant impact on the size of the shell. Due to the lower grades at Kamoeb North and the relatively high mining strip ratio, varying the mining cost has a moderate impact on the size of the shell. Reducing the unit processing cost resulted in a relatively low impact on the size of the shell, whereas increasing the unit cost had a significant impact on the size of the shell.
Kamoeb North
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Due to the lower grades at Kamoeb North, variations in metal price and metallurgical recovery had even more significant impact on the size of the shell. Mine Design Kamoeb South and Kamoeb North
18.2.5 18.2.5.1
The open pit mines at Kamoeb South and Kamoeb North have been designed to produce 525 kt/a of ore. The criteria taken into account include: Statutory and safety measures Policy decisions Equipment dimensions.
Table 18.6 shows the geotechnical parameters, as agreed by AMC and CSA, used to design the pits for each mining area, based on the pit shells identified by the Whittle optimisations:
Table 18.6 Pit Design Parameters Batter Angle (deg) 63 Bench Height (m) 10 Berm Width (m) 5 Ramp Grade (1 : x) 10 Ramp Width (m) 15, 22
Ramp widths of 22 m were based on the width of the selected CAT 775 haulage truck, with an allowance for a bund wall on the open side of the ramp and enough breadth between the trucks for them to pass safely. It was agreed that, due to the relatively small size of the pit, few trucks would be required to haul rock from the deeper portions of the pit. The ramp was thus narrowed to 15 m from the second last bench as there would be no need for trucks to pass each other on the last two benches. The ramp gradient is based on what the selected haulage truck can manage while maintaining maximum production. The pits were designed to have a minimum pit base width of 20 m at all times to ensure sufficient space to manoeuvre mining equipment in the pit for load and haul operations. Figure 18.3 shows the pit design for Kamoeb South and Figure 18.4 the design for Kamoeb North.
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Figure 18.3 Kamoeb South Pit Design Plan view
Figure 18.4 Kamoeb North Pit Design Plan view
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18.2.6 18.2.6.1
Waste Handling Kamoeb
Table 18.23 details the waste dump requirements.

Table 18.7 Kamoeb South and Kamoeb North Waste Dump Quantities Description Kamoeb South (Scenario 1) Kamoeb North (Scenario 3A) Kamoeb North (Scenario 3) Waste Production (t) 10 922 596 16 824 665 9 812 351 2.8 2.8 2.8 In situ Bulk Density Volume Requirement bcm 3 900 927 6 008 808 3 504 411 lcm 5 071 205 7 811 452 4 555 734
18.2.7 18.2.7.1
Mining Inventories Kamoeb South
All material above the marginal cut-off grade of 0.8 g/t has been coded as ore. Table 18.8 details the Kamoeb South open pit mining inventory per bench. As the inventory includes indicated material only, a probable reserve can be reported once process and engineering parameters and costs are confirmed.
Table 18.8 Mining Inventory Kamoeb South Open Pit Bench Total tones In situ ore Tonnes (t) 580-590 570-580 560-570 550-560 540-550 530-540 520-530 510-520 500-510 490-500 480-490 470-480 460-470 450-460 440-450 Total 387 20 645 271 353 953 185 2 091 690 3 029 891 3 051 297 2 816 240 2 550 464 1 931 768 1 348 679 829 699 440 735 191 562 32 028 19 559 624 3 501 73 056 248 173 370 728 381 782 337 028 272 297 218 261 176 863 147 829 95 728 56 939 16 903 2 399 087 3.45 4.95 4.91 4.42 4.24 4.21 4.02 3.71 3.54 3.38 3.43 3.40 3.68 4.12 3 991 83 284 282 917 422 629 435 231 384 211 310 419 248 817 201 623 168 525 109 130 64 910 19 269 2 734 959 In situ Au grade Ore tonnes (Including 5% loss and 20% dilution) (t) (t) 387 20 645 267 362 869 900 1 808 773 2 607 262 2 616 066 2 432 028 2 240 046 1 682 951 1 147 056 661 174 331 604 126 652 12 758 16 824 665 66.98 10.44 6.39 6.17 6.01 6.33 7.22 6.76 5.69 3.92 3.04 1.95 0.66 6.15 2.88 4.12 4.09 3.68 3.53 3.51 3.35 3.09 2.95 2.82 2.86 2.83 3.07 3.43 (t/t) (g/t) Waste tones Bench Strip Ratio Head grade Au
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18.2.7.2
Kamoeb North
All material above the marginal cut-off grade of 0.8g/t has been coded as ore. Table 18.9 details the Kamoeb North open pit mining inventory per bench. As the inventory includes inferred material only, a reserve cannot be reported.
Table 18.9 Mining Inventory Kamoeb North Open Pit Bench Total tones In situ ore Tonnes (t) 580-590 570-580 560-570 550-560 540-550 530-540 520-530 510-520 500-510 490-500 480-490 470-480 Total 4 249 43 653 164 555 686 586 1 658 262 2 049 060 2 121 266 1 939 541 1 480 066 783 518 262 581 36 127 11 229 463 817 9 013 32 005 85 228 130 460 152 312 188 067 199 238 192 281 164 911 74 230 14 517 1 243 080 In situ Au grade 1.16 1.26 1.96 2.43 2.77 3.00 3.02 2.99 2.91 2.70 2.37 2.07 2.80 Ore Tonnes (Including 5% loss and 20% dilution) (t) 932 10 275 36 486 97 160 148 725 173 636 214 396 227 131 219 201 187 999 84 622 16 549 1 417 111 (t) 3 317 33 378 128 069 589 426 1 509 538 1 875 424 1 906 870 1 712 410 1 260 865 595 519 177 959 19 577 9 812 351 (t/t) 3.56 3.25 3.51 6.07 10.15 10.80 8.89 7.54 5.75 3.17 2.10 1.18 6.92 (g/t) 0.97 1.05 1.63 2.02 2.31 2.50 2.52 2.49 2.42 2.25 1.98 1.73 2.33 Waste tones Bench Strip Ratio Head grade Au
18.2.8 18.2.8.1
Ore Production Schedules Kamoeb South and Kamoeb North
Datamine was used to report quantities and grades, and custom-built Excel spreadsheets were used for the scheduling of Potentially Mineable Material. In general, the following steps were undertaken in the scheduling process: Definition of ore and waste within the pit limits using Datamine Production of bench inventories using Datamine Transfer of bench inventories to spreadsheet Produce preliminary schedule.
A ramp up profile of 70% heap leach plant capacity in Year 1 up to 100% heap leach plant capacity in Year 2 and 100% CIL plant capacity in Year 5 is used in the schedule. A Life of Mine (LOM) mining schedule was created incorporating each of the pits within Kamoeb South and Kamoeb North. The aim of the schedule was to find a balance between mining high grade material as early as possible to get maximum returns, whilst minimising the use of stockpiles in order to keep rehandling costs to a minimum. The optimum sequence for mining the deposits thus appears at this
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stage to be to mine Kamoeb South first to take advantage of the higher gold grades in the Kamoeb East area, followed by Kamoeb North. The LOM mining schedule was created by sequencing the tonnes and associated grades at Kamoeb South and Kamoeb North to ensure the highest returns as early as possible. The ore extraction was scheduled by bench ensuring that initially the heap leach mill feed capacity was satisfied incorporating a one year mill feed ramp up and finally the CIL plant capacity was satisfied. The waste from each of the pits was then scheduled by bench allowing the strip ratios to be determined for each period. The associated head grade profile was also scheduled for the LOM. The overburden at Kamoeb South has already been excavated during the previous mining phase. Any overburden for the rest of the pits at Kamoeb North will be excavated during mining operations. Summary schedule data is outlined in Table 18.10, and Figure 18.5 and Figure 18.6 are graphical representations of the mining profile.
Table 18.10 Kamoeb Yearly Mining Schedule Year Pit Total Ore Input to Mill (t) 1 2 3 4 5 6 7 Total KamS KamS KamS KamS KamS/KamN KamS/KamN KamN 370 193 531 437 537 740 533 077 1 001 688 757 244 420 691 4 152 071 Grade Input to Mill (g/t) 4.08 3.65 3.52 3.38 2.64 2.59 2.23 3.06 Total Waste Mined (t) 2 967 068 3 261 278 3 299 665 3 671 049 6 918 657 4 969 725 1 549 574 26 637 016 8.01 6.14 6.14 6.89 6.91 6.56 3.68 6.42 Strip Ratio Total Rock Mined (t) 3 337 261 3 792 715 3 837 405 4 204 126 7 920 346 5 726 970 1 970 265 30 789 087 Total Ounces Output from Mill (oz) 48 609 62 423 60 897 57 898 84 973 63 006 30 158 407 965
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Figure 18.5 Kamoeb Ore Production Profile
KamoebOreProductionSchedule
Millions
1.20 1.00 3.50 4.50 4.00
2.50 0.60 2.00 0.40 0.20 0.50 0.00 1 2 3 4 Year Ore (t) HeadGrade (g/t) 5 6 7 1.50 1.00
Figure 18.6 Kamoeb Yearly Mining Profile
HeadGrade (g/t)
0.80
3.00
Tonnage (t)
18.2.9
Operating Costs
Open pit mining costs have been derived from the historical AMC site operating cost data. Operating costs are the combination of the mining technical services costs and the direct mining costs. The direct mining operating costs includes the drilling, blasting, excavation and haulage costs to the ROM pads or the waste dumps in close proximity to the pit collar and the ownership costs for the major items of mining equipment. Technical Services includes ore transport from pit ROM pad to the plant, workshop costs, quarry GSE which includes explosives costs and grade control costs. Table 18.11 outlines the operating cost schedule and unit operating cost data for the Kamoeb mining operation.
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Table 18.11 Operating Costs Schedule Kamoeb Open Pits Kamoeb Mine Production and Heap Leach Tailings and Acidic SBR Stockpile Reclamation Operating cost Schedule Description Kamoeb South and Kamoeb North Production Waste Tonnes Mined Ore Tonnes Mined Ore Au Grade Total Rock Tonnes Mined Strip Ratio Kamoeb South and Kamoeb North Production Operating Costs Technical Services Ore Haulage Grade Control (Laboratory) Quarry GSE Quarry Workshops Sub-total Technical Services Ore Mining Costs Waste Mining Costs Sub-total Direct Mining Costs Total Mining Costs Unit Cost per Tonne Rock Mined Unit Cost per Tonne of Ore Mined $ (000) $ (000) $ (000) $ (000) $ (000) $ (000) $ (000) $ (000) $ (000) $/t $/t 6 685 1 846 23 473 24 749 56 753 5 681 20 901 26 582 83 335 2.71 20.07 596 264 2 093 2 309 5 262 507 2 328 2 835 8 096 2.43 21.87 856 264 3 004 3 196 7 320 727 2 559 3 286 10 606 2.80 19.96 866 264 3 040 3 231 7 400 736 2 589 3 325 10 725 2.80 19.94 858 264 3 014 3 205 7 341 729 2 880 3 610 10 951 2.60 20.54 1 613 264 5 663 5 783 13 322 1371 5 429 6 799 20 121 2.54 20.09 1 219 264 4 281 4 438 10 202 1036 3 899 4 936 15 138 2.64 19.99 677 264 2 378 2 587 5 906 576 1 216 1 791 7 698 3.91 18.30 kt kt g/t kt t/t 26 637 4 152 3.06 30 788 6.42 2 967 370 4.08 3 337 8.01 3 261 531 3.65 3 793 6.14 3 300 538 3.52 3 837 6.14 3 671 533 3.38 4 204 6.89 6 919 1 002 2.64 7 920 6.91 4 970 757 2.59 5 727 6.56 1 550 421 2.23 1 970 3.68 Units Total Year-1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
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18.2.10
Mine Capital Costs
Due to the fact that the Hassai gold mine has been in operation since 1992, mine infrastructure is already in place and a large fleet of major and minor mining equipment is owned by the company and available. 18.2.10.1 Mining Infrastructure
All mining infrastructure is already in place and thus no capital expenditure is required to construct mine production infrastructure. Facilities already established for the open pit mine include: Offices at the pit and in the central mine complex Workshops at the pit and in the central mine complex Service bays together with standing areas for mobile equipment at the pit and in the central mine complex Fuel Storage and refuelling areas for mobile equipment at the pit and in the central mine complex Explosive storage facilities Electrical supply infrastructure. Mining Equipment
18.2.10.2
As the mine currently owns a large fleet of mining equipment, there is no need for any initial mining equipment capital expenditure. As production increases to accommodate the CIL plant capacity and the mining equipment ages, replacement capital will be required to augment the mining fleet. It should be noted that no significant additional costs have been allowed for landing new equipment in Sudan (ie. import taxes, duties, etc.). This needs to be investigated in the next level of study. Table 18.12 outlines the replacement capital cost data.
Table 18.12 Replacement Capital Cost Summary Kamoeb Open Pits Description Mining Equipment Total Replacement Capital Cost Assumptions Replacement Capital for Major and minor mining equipment 8 829 Total Cost ($000) 8 829
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18.3 18.3.1
CSA MINING STUDY ACIDIC SBR ORE STOCKPILES AND HEAP LEACH TAILINGS Introduction
Heap leach tailings will be reclaimed at a rate of 2.0 Mt/a while acidic SBR stockpiles will be reclaimed as required, ensuring that the fresh ore plant capacity of 1.0 Mt/a will be maintained. The existing heap leach tailings will be reclaimed by bulldozer and FEL into a mobile feeder system. This in turn transfers the reclaimed material to an overland conveyor, which has been assumed to be 2500 m in length. The overland conveyor feeds a storage bin at the milling area. Acidic SBR stockpile material will be reclaimed by bulldozer and FEL into trucks and transported to the ROM bin at the crusher plant. Table 18.15 shows the heap leach tailings inventory and Table 18.14 shows the acidic SBR stockpile inventory.
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Table 18.13 Heap Leach Tailings Inventory Heap Leach Tailings Mining Inventory Gold in Tailings Source for CIL Feed Pre 2008 Resources Heaps Number 63A-113 M&I Classification Ore (t) 6 677 000 Estimation Method Drilling, Block model Pre 2008 Resources 63A-113 Inf 1 178 000 Drilling, Block model 2008 - 2009 Heap Residue 2008 - 2009 Heap Residue 2008 - 2009 Heap Residue 130-136 Inf 482 000 120-129 Inf 847 000 114-119 M&I 514 000 Metallurgic al balance Metallurgic al balance Metallurgic al balance CN soluble 1.15 553 486 88% 2nd cycle leaching essentially complete - mass balance as per 31st July 2010 2010-2013 estimated production CIL Feed (Heap Residue) at 1/1/2014 12 248 000 Inf 2 550 000 Metallurgic al balance 1.62 19 808 13 921 70% CN soluble 0.9 2 219 1 949 88% Expected metallurgical balance CN soluble 1.58 1 339 1 176 88% Leaching completed CN soluble 0.91 469 412 88% Leaching completed Fire Assay 2.11 2 434 1 582 65% Leaching completed Fire Assay Assay Au Grade (g/t) 1.91 Gold (kg) 12 793 Gold Rec (kg) 8 315 Recovery (%) 65% Leaching completed Comment
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Table 18.14 Acidic SBR Stockpile Inventory Acidic SBR Stockpile Mining Inventory As at Dec. 31, 2009 Washable Probable Reserves Non-Washable Probable Reserves Total Reserves 538 452 659 438 6.00 5.94 3 231 3 918 2 972 3 453 0.92 120 986 5.68 687 481 0.70 Acidic SBR Ore (t) Au Grade (g/t) Gold (kg) Gold Rec (kg) Recovery (%)
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18.3.2
Heap Leach Tailings and Acidic SBR Stockpile Reclamation Schedule
The LOM reclamation schedule for the acidic SBR stockpile and the heap leach tailings was created by scheduling the tonnes required to supplement the Kamoeb ore to satisfy the 1 Mt/a fresh mined ore plant requirement and to satisfy the 2 Mt/a heap leach tailings plant requirement. At this stage the grades for both the acidic SBR stockpiles and the heap leach tailings have been kept constant for the LOM. Table 18.15 below presents a summary of the total annual acidic SBR ore and heap leach tailings reclaimed. It also shows the annual mill feed grade and the final recovered gold ounces, based on input provided by AMC.
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Table 18.15 Hassai Acidic SBR Stockpile and Heap Leach Tailings Reclamation Schedule Acidic SBR Year Area Tonnes (t) 1 2 3 4 5 6 7 8 9 Acidic SBR non-wash/HL Tailings Acidic SBR non-wash/HL Tailings HL Tailings HL Tailings HL Tailings HL Tailings Total 659 438 5.94 88% 2 126 744 2 392 053 3 000 000 871 489 12 248 248 1.62 1.62 1.62 1.62 1.62 70% 70% 70% 70% 65% 2 126 744 2 392 053 3 000 000 871 489 12 907 686 1.62 1.62 1.62 1.62 1.78 70% 70% 70% 70% 73% 77 406 87 062 109 189 31 719 556 817 71 529 6.00 92% 1 857 962 1.62 70% 1 929 491 1.78 73% 80 317 466 923 6.00 92% 2 000 000 1.62 70% 2 466 923 2.45 80% 155 658 Acidic SBR washable 120 986 Grade (g/t) 5.68 Metal. Recovery (%) 70% (t) (g/t) Heap Leach Tailings Tonnes Grade Metal. Recovery (%) (t) 120 986 (g/t) 5.68 Tonnes Grade Total Metal. Recovery (%) 70% Gold Production (oz) 15 466
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Figure 18.7 Hassai Acidic SBR Stockpile and Heap Leach Tailings Yearly Reclamation Schedule
18.3.3
Heap Leach Tailings and Acidic SBR Stockpile Reclamation Operating Costs
Heap leach tailings reclamation mine operating costs consist of the cost of equipment and labour to load heap leach tailings ore onto a mobile feeder system. This in turn transfers the reclaimed material to an overland conveyor for transportation to the plant. The overland conveyor is costed under the operating plant. Acidic SBR stockpile reclamation operating costs consist of load and haul costs of acidic SBR stockpile material to the ROM pads. Table 18.16 outlines the operating cost schedule and unit operating cost data for the Heap Leach Tailings and Acidic SBR Stockpile Reclamation operation.
Table 18.16 Operating Costs Schedule Heap Leach Tailings and Acidic SBR Stockpile Reclamation Kamoeb Mine Production and Heap Leach Tailings and Acidic SBR Stockpile Reclamation Operating cost Schedule Description H.L. Tailings Acidic SBR Stockpile Reclamation Heap Leach Tailings Tonnes Reclaimed Heap Leach Tailings Au Grade Acidic SBR Stockpile Tonnes Reclaimed Acidic SBR Stockpile Au Grade Total Tonnes Reclaimed H.L. Tailings and Acidic SBR Stockpile Costs Heap Leach Tailings Reclamation Costs Acidic SBR Stockpile Reclamation Costs Total Reclamation Costs Unit Cost per Tonne of Ore Reclaimed US$ (000) US$ ('000) US$ ('000) US$/t 13 963 857 14 820 1.15 157 157 1.30 2 280 607 2887 1.17 2 118 93 2211 1.15 2424 1.14 2727 1.14 3420 1.14 993 1.14 2 424 2 727 3 420 993 kt g/t kt g/t kt 12 248 1.62 659 5.94 12 908 121 5.68 121 2 000 1.62 467 6.00 2467 1 858 1.62 72 6.00 1929 2127 2392 3000 871 2 127 1.62 2 392 1.62 3 000 1.62 871 1.62 Units Total Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
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18.3.4
Heap Leach Tailings and Acidic SBR Stockpile Reclamation Mine Capital Costs
Due to the fact that the Hassai gold mine has been in operation since 1992, mine infrastructure is already in place and a large fleet of major and minor mining equipment is owned by the company and available. No capital costs have thus been allocated to heap leach tailings and Acidic SBR stockpile reclamation. 18.4 18.4.1 AMEC MINING STUDIES VMS DEPOSITS Mining Study Background
AMEC carried out a scoping study evaluation of AMCs Hassai South and Hadal Awatib VMS deposits, the aims of which were to develop a mining strategy for the VMS concentrator scoping study and to assist in planning future exploration of these deposits. The scope of work included examination of production at both 2 Mt/a and 5 Mt/a, with 5 Mt/a being selected by AMC as the final production rate for scheduling and financial analysis. 18.4.2 Study Approach
The following work was undertaken: Mining method selection Preliminary estimation of operating costs Pit optimisations to determine practical pit limits whilst maximizing the project value, using Whittle Four-X software Sensitivity analysis to determine what factors may influence the project Pit design on selected Whittle shells Reporting of inventories within the pit design Evaluation of underground mining options for material remaining below ultimate pits Preliminary underground mine designs for selected underground resources Reporting of inventories within the underground stope designs Generation of mining schedules using the pit and underground stope inventory information Generation of scoping level operating and capital cost estimates. Mining Methods Hassai South
18.4.3 18.4.3.1
The Hassai South VMS deposit is a fairly regular ore-body, with an approximate strike length of 1.2 km, dipping at approximately 65-70 and exposed in the bottom of an abandoned oxide pit. The ore zone has been outlined for approximately 300 m below the existing pit, and remains open at depth.
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The orebody dips under an existing oxide waste dump, thus any cutback on the pit will require rehandling of the oxide waste. This alone suggests that the greatest potential for VMS mining is likely to be from underground. There are, however, certain underground upsides should a cut-back be viable on the existing pit: The existing oxide pit has had a few wall failures (one of some significance), that will require remedial work to ensure longer term pit stability for underground access There is a significant amount of supergene material in the bottom of the pit, which is of high value, and is not likely to be ideal material for use as a crown pillar While cutting back the pit, provision can be made for the location of the portal (larger berm above portal, flatter slope, etc.).
Open Pit Analysis Based on historical information and studies provided by AMC, standard open pit mining was considered, taking account of the existing fleet size of 90 t trucks and 120 t excavators, and local operator experience. Once the final scoping open pit dimensions and strip ratios are known, the suitability of this fleet for the resulting mining schedule can be reassessed. Underground Analysis The orebody dip, strike length and thickness lend themselves to sub-level open stoping (SLOS). Preliminary site geotechnical investigations (Section 18.2) indicates that the hanging wall is of a fair rock mass condition, and a maximum unsupported strike length of 30 m could be achievable for a 30 m sub-level spacing. In order to maintain global stability and maximise extraction stopes, backfill will be required, and paste fill has been assumed. 18.4.3.2 Hadal Awatib
The Hadal Awatib VMS deposit is interpreted as a series of folded lenses of varying width, with a fairly large regular pod of mineralisation at the southwest end. The orebody is exposed in the bottom of an existing oxide pit, however the geology appears very complex and AMC advises that more drilling is required to improve understanding of the deposit. Open Pit Analysis Again, standard open pit mining was considered, taking account of the existing fleet and local operator experience. Underground Analysis Due to the relatively complex nature of the deposit, and the current level of understanding of the orebody, it was decided that underground evaluations would be considered only for material remaining below any VMS open pit, and that any underground evaluation would be carried out at a high level.
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18.4.4
Pit Optimisation
Pit optimisations were carried out for both VMS deposits. Analyses were carried out on VMS ore production rates of 2 Mt/a and 5 Mt/a. 18.4.4.1 Approach
Whittle 4X pit optimisation software (Whittle) was used to generate optimal pits for the deposits, based on analysis of the resource model. Whittle allows the generation of a series of nested optimal pits, where each successive outline is for a slightly higher product price than the previous one. This is done for a range of prices, from the lowest for which ore can be profitably mined to the highest expected in the future. These pits are then interrogated at the base case costs and prices to establish their respective values. Selection of the optimal pit is normally based on maximising the project NPV, but maximum cash flow can also be used as a selection criteria. As no capital has been included in the Whittle analysis, NPVs are only Operating NPV and therefore should be used only for relative ranking purposes. The Operating NPV is often overstated. Whittle incorporates time-discounting of money and assumes two extreme mining sequences (best and worst cases) for optimal pit selection. The best-case mining sequence mines the nested pits, starting with the smallest pit outline and mining subsequent pits until the largest pit is mined out. The worstcase mining sequence mines to the final pit outline bench by bench. The best case scenario returns a higher NPV due to the increased cash flow during the earlier years as a result of mining internal pits with lower strip ratios and/or higher grades. In consultation with AMC, the maximum cash flow shell was selected as the basis for the ultimate pit design for both deposits. 18.4.4.2 Optimisation Input Parameters
Pit optimisation was carried out using all classified mineralisation (Measured, Indicated and Inferred) contained within the resource models. Load/haul and blasting costs were supplied by AMC, based on the current site costs. Processing costs, anticipated metallurgical recoveries and selling costs were provided by AMEC. Base Case metal prices used for the study were $2.19/lb for copper and $900.00/oz for gold. A summary of the Whittle input parameters used in pit optimisation is provided in Table 18.17.
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Table 18.17 Whittle Input Parameters

ITEM
DISCOUNTRATE DiscountRate ROYALTY SudaneseMinistryforGeology(GRAS) LaMancha(viaCominor) TotalRoyalty METALPRICES METALPRICES Copper Gold GENERAL DefaultDensity ConversionFactors FOREX Poundunitspermetrictonne Ounceunitspermetrictonne Ounceunitspergram PROCESS OxideCIP Recovery Cu Au Zn Concentrate Grade Cu Au Zn REVENUECALCULATIONS COPPERSULFIDE PayableMetal PayableMetal MinimumDeduction MinimumDeduction TreatmentCharge BaseCharge(TC/RC) PricePartisipation UpperPrice LowerPrice Upscale DownScale RefiningCharge Penalties Limit Rate CIPGold PayableMetal MetalPricePayable SellingCosts BaseCharge CONCENTRATECOSTS COPPERSULFIDE TransportCostmineto port PortCharges PackingCost Insurance Interest ShippingCosts MoistureContentCon Marketing TransportCosttrucktoport PortCharges PackingCost Insurance Interest ShippingCosts TotalCost PROCESS OPERATINGCOSTS Supergene/Primary HassaiSouth 2Mtpa 5Mtpa US$/tore US$/tore US$/tore US$/tOre 8.36 5.54 0.62 14.52 5.75 2.22 0.62 8.58 HadalAwatib 2Mtpa 5Mtpa 8.30 5.54 2.47 16.31 5.69 2.22 2.47 10.37 AMECMinproc AMCSiteCosts AMCSiteCosts Unit US$/wmtcon US$/wmtcon US$/wmtcon US$/wmtcon US$/wmtcon US$/wmtcon % US$/tconc US$/dmtconc US$/dmtconc US$/dmtconc US$/dmtconc US$/dmtconc US$/dmtconc US$/dmtconc 34.00 5.90 0.00 10.00 50.00 104.00 9 6.40 37.36 6.48 0.00 10.99 54.95 114.29 230.47 HassaiCIPScopingStudy AMECMinproc AMECMinproc AMECMinproc AMECMinproc AMECMinproc AMECMinproc AMECMinproc %Cu %Au %Cu Aug/t 96.5 100 1.10 1.0 AMECMinproc AMECMinproc AMECMinproc AMECMinproc HassaiSouth Supergene Primary 81.0 67.0 7.0 32.0 90.0 36.0 14.0 25.1 HadalAwatib Supergene Primary 85.0 29.0 10.0 25.1 85.0 29.0 10.0 25.1 AMECMinproc AMECMinproc/CIPScopingStudy AMECMinproc AMECMinproc Unit Euro:US times times times 2.8 RemiBosc Unit US$/lb US$/oz 2.19 900.00 LaMancha LaMancha %ofNSR %ofNSR %ofNSR % 10 LaMancha
VALUE
SOURCE
7.90
LaMancha
1.37 2,204.62 32,150 0.03215
LaMancha
% % % % g/t %
92.4
US$/lbCu US$/lbCu US$/lbCu % % US$\ozpayableAu
0.20 0.00 0.00 0 0 4.00
AMECMinproc AMECMinproc AMECMinproc AMECMinproc AMECMinproc AMECMinproc
%Zn US$/1%Zn
2.0 2.00
AMECMinproc AMECMinproc
%Au US$/gAu
100 26.6491
LaMancha
US$/gAu
0.05
Kamoeb2010OptimisationParameters
Processing SiteG&A OreTransport TotalOperatingCost OxideCIP
HassaiSouth 2Mtpa 5Mtpa US$/tore US$/tore US$/tore US$/tOre 13.49 0.62 14.11 13.49 0.62 14.11
HadalAwatib 2Mtpa 5Mtpa 13.49 2.47 15.96 13.49 2.47 15.96 CIPScopingStudy AMCSiteCosts
Processing SiteG&A OreTransport TotalOperatingCost MININGOPERATINGCOSTS MiningRecovery MiningDilution OreOverhaulCost UnitCost DistancetoROM OverhaulCost Operating CostEstimate MiningCost PITSLOPES NorthWall AllmRL Sensitivity SouthWall AllmRL
% %
100 0 HassaiSth 0.21 3 0.62 HassaiSth 1.348.6 HassaiSth
AMECMinproc DilutedResourceModels HadalAwatib 0.21 12 Pitlocatedadjacenttoplant 2.47 HadalAwatib 2.88.1 Variesbybench HadalAwatib 43 +/2deg 41 +/2deg AMECMinproc
US$/t.km km US$/t
AMCSiteCosts
US$/t
AMCSiteCosts/AMECMinproc
deg
48 +/2deg 39 +/2deg 2.0&5.0
deg
AMECMinproc
PlantThroughput
Mtpa
AMECMinproc
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18.4.4.3
Resource and Mining Models
Hassai South The first resource model supplied by AMC was a partials model based on a very large block size (5x100x20 m - YXZ). To reduce mining dilution, a smaller block size model was supplied, that would better match a likely minimum mining unit (5x20x10 m), so that a consolidated block grade could be applied. The following formula was used to define Cueq in the resource models: All Ore Types: Cueqr = Cu (%) + 0.63 x Au (g/t) Table 18.18 reports the updated partials resource model at a cueqr cut-off grade of 0.8%.
Table 18.18 Hassai South Underground Resource Model Update Category Supergene Primary Total VMS Volume bcm 389 559 4 380 677 4 770 236 Tonnes 1 632 250 18 880 716 20 512 966 Cu (%) 2.67 1.36 1.47 Au (g/t) 2.15 1.49 1.54 Zn (%) 0.09 0.19 0.18 Cueq (%) 4.02 2.30 2.44
r
The partial percentage grades for the block needed to be converted into consolidated grades, as it was not considered appropriate to assume the ore could be selectively mined within a block. Metal tonnes by element were calculated by material type (ie. oxide, supergene, primary), and then added together and divided by the total tonnes of the block to give the consolidated block grades. For optimisation, a block needs to be of a single material type; as such the material type with the largest block proportion percentage was used to define the material type for the block. Table 18.19 details the updated consolidated grade resource model using a Cueqr cut-off grade of 0.8%.
Table 18.19 Hassai South Resource Model Consolidated Grades Category Supergene Primary Total VMS Volume (bcm) 678 000 5 548 000 6 226 000 2 402 758 21 641 999 24 044 757 Tonnes Cu (%) 1.70 1.11 1.17 Au (g/t) 1.40 1.22 1.24 Zn (%) 0.06 0.16 0.15 cueqr (%) 2.58 1.88 1.95
Hadal Awatib The resource model used as the basis for pit optimisation is a Surpac model supplied by AMC. The resource model was located on a rotated grid, and had sub-blocks down to a very small size (2.5x2.5x1.25 m). To convert this model into a mining model, blocks were consolidated into what was considered a reasonable size minimum mining unit based on the current mining fleet. In order to
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maintain model integrity, a mining block size of 5x5x2.5 m was chosen as an increment of the smallest sub-block size. The resource model was expanded to include waste for pit optimisation. 18.4.4.4 Net Smelter Return
Net smelter return (NSR) is defined as the payment received by the mine after the smelter, refiner or buyer has deducted all their charges, and all the transport, storage, insurance, assaying and marketing costs associated with delivering the product to the customer have been subtracted. The NSR was calculated on a block by block basis for each model. The final coded mining model was exported into Whittle and resource reports were generated to confirm the integrity of the model coding. The value of any oxide CIL plant feed was not included in the NSR calculation, as this was treated as a VMS plant NSR only. However, the value of the CIL plant feed was calculated in Whittle, and used to potentially assist in paying for incremental stripping. Some concerns were expressed by the resource geologist about the confidence in the Hassai South oxide material, so the impact of this material on the results was assessed as part of the sensitivity study. 18.4.4.5 Topography
Surface topography for Hassai South was supplied by AMC. For Hadal Awatib several topographical files were supplied by AMC. These were merged with the supplied ultimate pit design to form the final topographical file used for the Hadal Awatib evaluation. All material above the topographical files was coded as air. 18.4.4.6 Pit Slopes
Pit slopes were based on site observations of the current oxide mining operations (refer to Section 18.2). 18.4.4.7 Mining Costs
Load and haul costs were supplied by AMC, based on existing oxide mining unit costs for excavators and 40-60 t trucks. As the mining costs were for oxide operations and only a single rate was available (rates by bench not available), AMEC adjusted the values based on its internal cost database to develop bench rates, and make allowance for the increase in pit depth. Mining G&A cost was assumed to be included in the unit processing cost.
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18.4.4.8
Mining Dilution
Both resource models were considered to be diluted models; as a result no further dilution was added for pit optimisation. A mining recovery of 100% was applied. 18.4.4.9 Metal Prices
Base Case metal prices used for the study were $2.19/lb for copper and $900.00/oz for gold. 18.4.4.10 Cut-off Grades
Cut-off grades are determined in the optimisation on an individual block basis. Each of the deposits has separate recovery and process costs attributed. The block value is calculated from the metal price, recoveries, grades and process costs. 18.4.4.11 Discount Rate
A discount rate of 10% was applied to calculate the discounted cash flow for the optimisation. 18.4.4.12 Optimisation Results
Optimisation was carried out to determine the approximate mine life for the Project. Measured, Indicated and Inferred material was included in the Base Case optimisations, and the base metal prices and production constraints applied. The marginal cut-off grade (NSR $/t) by option and deposit was as follows: Hassai South, 5 Mt/a Hadal Awatib, 5 Mt/a $8.58/t $10.37/t
After consultation with AMC, the maximum cash flow shell was selected as the basis for the ultimate pit designs. The selected optimisation shells were as follows: Hassai South, 5 Mt/a 5.7 Mt @ $53.01/t NSR, SR of 7.6:1 Operating NPV of $112.0 M Total operating cost of US$34.44/t ore 16.1 Mt @ $38.07/t NSR, SR of 4.2:1 Operating NPV of $165.3 M Total operating cost of US$28.05/t ore
Hadal Awatib, 5 Mt/a
Figure 18.8 and Figure 18.9 detail a plan view of the selected Whittle shell for each case. Whittle shells are coloured blue with the starting topography coloured green.
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Figure 18.8 Hassai South 5 Mt/a Optimisation Shell
Figure 18.9 Hadal Awatib 5 Mt/a Optimisation Shell
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18.4.4.13
Sensitivity Analysis
Sensitivities were performed on both deposits for the 2 Mt/a case, showing the following: Hassai South As the grade of the oxide material was relatively low, exclusion of this material from the Whittle evaluation results in a marginal impact on operating NPV and only a minor impact on the resulting shell Due to the relatively high mining strip ratio, varying the mining cost has a very significant impact on the size of the shell and the pit financials. Unit processing cost variations of +20% and -10% have a moderate impact on the results Varying the slopes by 2 degrees had a marginal impact on the overall results. Exclusion of the oxide material in the resource model resulted in a very significant impact on operating NPV (-47%), but had very little impact to the overall size of the shell Overall, the relatively low average NSR results in the deposit being sensitive to any cost increases; an increase of 20% in mining costs had a significant impact on the results, as did a 20% increase in operating costs, both in terms of shell size and the pit financials Varying the slopes by 2 degrees had a marginal impact on the size of the shell, but flattening of the slopes had a significant impact on the pit financials. Mine Design Hassai South
Hadal Awatib
18.4.5 18.4.5.1 Open Pit
A design was developed for the 5 Mt/a option, but no sensible cutback option was possible; extremely small cutbacks were indicated on the northern side of the pit, with bull noses on the southern side (near the waste dump peaks). Underground A smaller block size (5x10x5 m) model was provided as being more appropriate for underground mining analysis. Table 18.20Table 18.20 details the updated partials resource model using a Cueqr cut-off grade of 0.8%.
Table 18.20 Hassai South Underground Resource Model Update Category Supergene Primary Total VMS Volume (bcm) 390 245 4 379 643 4 769 888 1 635 127 18 876 265 20 511 392 Tonnes Cu (%) 2.67 1.36 1.47 Au (g/t) 2.14 1.49 1.54 Zn (%) 0.09 0.19 0.18 cueqr (%) 4.02 2.30 2.44
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Table 18.21 details the updated consolidated grade resource model at the same cut-off grade.
Table 18.21 Hassai South Underground Resource Model Consolidated Grades Category Supergene Primary Total VMS Volume (bcm) 599 250 5 256 500 5 855 750 2 203 788 20 943 393 23 147 181 Tonnes Cu (%) 1.91 1.17 1.24 Au (g/t) 1.56 1.28 1.31 Zn (%) 0.07 0.17 0.16 cueq (%) 2.89 1.98 2.07
r
Orebody parameters suggested SLOS with paste fill as the most likely method of mining. All oxide mineralisation was considered as waste for the purposes of the underground evaluations. The following formulas were developed to define the Cueq based on the updated revenue factors: Supergene Ore: Primary Ore: Cueqm = Cu (%) + 0.501 x Au (g/t) Cueqm = Cu (%) + 0.228 x Au (g/t)
Typical average unit mining costs for SLOS with paste fill were applied to develop a preliminary marginal cut-off grade of 1.5% cueqm for stope definition. Table 18.22 details the updated consolidated resource model using a Cueqm cut-off grade of 1.5%. It should be noted that these results assume that no blocks below the cut-off fall in the stopes, and that no additional ore loss and dilution factors have been applied for underground mining.
Table 18.22 Hassai South Underground Resource Model (Cut-off 1.5% Cueqm) Category Supergene Primary Total VMS Volume (bcm) 461 500 2 238 000 2 699 500 1 765 056 9 347 917 11 112 973 Tonnes Cu (%) 2.19 1.60 1.69 Au (g/t) 1.76 1.61 1.64 Zn (%) 0.09 0.28 0.25 cueq (%) 3.07 1.97 2.14
m
A level interval of 30 m was used, except for the sulphide zone, where 20 m was applied. As the concept involved early removal of supergene stopes, a crown pillar has been planned for 350-380 mRL. A temporary crown pillar has also been allowed for at 230-260 mRL to allow top-down stoping to be carried out above this location and bottom-up stoping below. Once the two stoping zones are completed, this pillar will be extracted on retreat. Once all stoping is complete, the ultimate crown will be removed.
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Figure 18.10 outlines the conceptual stoping levels for Hassai South.
Figure 18.10 Hassai South Stoping Concept
As the current resource is considered to be relatively shallow (approximately 300 m below the current pit base), decline access was applied. The existing pit ramp is on the hanging wall side of the deposit, and it was decided to locate the portal on the same side, to avoid crossing the bottom of the pit and sterilising part of the supergene mineralisation in maintaining underground access. Figure 18.11 indicates the conceptual decline portal location for Hassai South.
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Figure 18.11 Hassai South Decline Portal Location
The following basic decline development design parameters were applied: Decline/Incline Development Width Height Gradient Curve Radius Other Development Level Access Level Development Ventilation Drives Ventilation Rises 5.0 mW x 5.0 mH 5.0 mW x 5.0 mH 4.5 mW x 4.5 mH 3.5 mD 5.0 m 5.5 m 1 in 7 straight sections 1 in 8 curves 22 m
An allowance of 15% was applied to decline development centreline designs to allow for stockpiles and miscellaneous stripping. This allowance was increased to 23% for level development to allow for additional stripping for stope slots and the like. Due to the ore zone strike length, dual declines were designed so that multiple stoping fronts could be set up on each level, thus increasing the potential production rate from underground. Link drives have been included to simplify traffic flow between the west and the east sides of the mine. This will also allow for the potential application of road trains if required, without the need for turning loops. However, an additional link drive may be required at the bottom of the mine for this to be workable.
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Figure 18.12 outlines a long section of the underground development concept.

Figure 18.12 Hassai South Development Long Section
Although no detailed ventilation work has been carried out, proposed production rates suggest that an additional fresh air intake would likely be required. Consequently one has been included at the top of the East Incline, which would be used as the second means of egress via an installed ladder way. 18.4.5.2 Hadal Awatib
An open pit design was provided for the 5 Mt/a VMS processing option. The following pit design parameters were applied: North Wall Bench Height Berm Width Batter Angle Ramp Width Ramp Grade 10 m 4m 65 o 22 m 1 in 10
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South Wall Bench Height Berm Width Batter Angle Ramp Width Ramp Grade 10 m 6.5 m 75 22 m 1 in 10
Figure 18.13 shows the pit design for the 5 Mt/a option.
Figure 18.13 Hadal Awatib Pit Design 5 Mt/a
18.4.6 18.4.6.1
Waste Handling Hassai South
Development waste will initially be placed on the top of the existing oxide waste dumps. However, once stoping commences, waste will either be dumped into mined-out stopes, or dumped into the bottom of the pit (once the supergene stopes have been removed and backfilled). Figure 18.14 outlines the location of the existing Hassai South oxide waste dump locations.
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Figure 18.14 Hassai South Oxide Waste Dump Location
18.4.6.2
Hadal Awatib
Table 18.23 details the waste dump requirements.

Table 18.23 Hadal Awatib Waste Dump Quantities Option Req. Dump (Mbcm) Option 5 Mt/a 37.6 Total (Mbcm) 28.9 Waste Types by Option Unclassified (Mbcm) 28.5 Mineralised (Mbcm) 0.45
A conceptual waste dump design was completed (Figure 18.15). Detailed topography of the proposed waste dump location will be required to generate a more accurate design at the next level of evaluation.
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Figure 18.15 Hadal Awatib Conceptual Waste Dump Location
18.4.7 18.4.7.1
Mining Inventories Hassai South
All material inside the ore drives and stope outlines was coded as ore. Supergene ore stopes have been assumed to be stoped in 20 m strike lengths, with 10 m rib pillars left between every second stope (ie. 10 m pillar per 50 m strike length), thus a 20% ore loss factor was applied (material left in support pillars). Primary ore stopes have been assumed to be stoped in 30 m strike lengths, with no rib pillars required. Typical ore loss factors for SLOS are in the range of 5-10% (material left in stopes and on walls); a 5% ore loss factor was applied for the scoping study. Dilution factors associated with SLOS are typically in the range of 10-15% to allow for overbreak and stope wall failures. Potentially some dilution had already been included in the grade consolidation, therefore stopes had a 10% dilution factor applied. Stopes are typically located inside a wider ore zone, and, as such, it was considered that including dilution as purely waste would not be reasonable. The average grade of the resource blocks outside of the stope outlines was assessed, and a dilution grade 0.49% Cu and 0.60 g/t Au was applied. Table 18.24 details the base case Hassai South underground mining inventory. As these inventories contain inferred material, a reserve cannot be reported.
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Table 18.24 Mining Inventory Hassai South Underground Material Development Ore Stoping Supergene Primary Total VMS Feed 1.7 9.6 12.5 1.59 1.36 1.37 1.27 1.40 1.36 0.06 0.24 0.21 1.2 1.22 1.20 0.16 Tonnes (Mt) Cu (%) Au (g/t) Zn (%)
As a sensitivity, dilution factors associated with SLOS were set to 0%, in the event that sufficient dilution had already been included in the block consolidation of grades. Ore loss factors were however still applied, as loss of material in support pillars and stope recovery still needed to be considered. Table 18.25 details the resulting un-diluted underground mining inventory.
Table 18.25 Undiluted Mining Inventory Sensitivity Hassai South Underground Material Development Ore Stoping Supergene Primary Total VMS Feed 1.4 8.8 11.5 1.76 1.44 1.46 1.38 1.47 1.43 0.07 0.26 0.23 1.2 1.22 1.20 0.16 Tonnes (Mt) Cu (%) Au (g/t) Zn (%)
Further work is required on the resource model before more definitive dilution factors can be determined, and refinement of the stope shapes can be carried out. As the original resource blocks were based on a partial percentage ore approach, there is essentially no spatial aspect to the location of this ore, thus accurate definition of stope shapes is impossible, leading to the need for consolidation of grades within each block. This then raises the issue of dilution, which is difficult to measure in the current ore model as the ore has no spatial aspect. Moving forward, a reasonable minimum mining unit needs to be incorporated in the resource estimation process, from the construction of ore interpretations through to block size selection for resource estimation. Possibly most importantly, the grade field applied to the blocks needs to assume the entire block will be mined. 18.4.7.2 Hadal Awatib
All material above the marginal NSR cut-off grade of $10.37 has been coded as ore. Table 18.26 details the Hadal Awatib open pit mining inventory. As the inventory includes inferred material, a reserve cannot be reported.
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Table 18.26 Mining Inventory Hadal Awatib 5 Mt/a Open Pit Total Waste Oxide Supergene Primary Mineralised Waste Total VMS Feed Tonnes (Mt) 78.0 0.4 8.9 8.0 1.5 16.9 0.09 0.96 1.26 0.10 1.10 4.30 0.96 0.88 0.16 0.92 0.02 0.63 0.72 0.65 0.67 4.7 Cu (%) Au (g/t) Zn (%) 2.74 2.44 4.01 4.19 3.43 4.10 SR SG
18.4.8 18.4.8.1
Ore Production Schedules Hassai South
Surpac was used to report quantities and grades, and custom-built Excel spreadsheets were used for the scheduling of the Hassai South Project. The schedule, which is summarised in Table 18.27, was intended to produce ore as quickly as feasible from the underground mine. In general, the following steps were undertaken in the scheduling process: Definition of ore within the stope and ore drive outlines using Surpac Production of stope and development inventories using Surpac Transfer of inventories to spreadsheet Transfer of development quantities to spreadsheet Produce preliminary schedule.
Figure 18.16 displays graphical representations of the underground ore mining profile.
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Table 18.27 Hassai South Underground Mining Schedule
MiningScheduleHassaiSouthUnderground
CAPITAL HorizontalDevelopment MainDecline EastIncline EastDecline LinkDrives Link#1 Link#2 LevelAccess VentDrives VerticalDevelopment VentRises FAR RAR DevelopmentDimensions Width Height Diameter Description 5 5 5 5 5 5 4.5 5.5 5.5 5.5 5.5 5.5 5 4.5 5mWx5.5mH 5mWx5.5mH 5mWx5.5mH 5mWx5.5mH 5mWx5.5mH 5mWx5mH 4.5mWx4.5mH
Unit
Total
m1
m 2
m 3
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Y11
Y12
Y13
Y14
(m) (m) (m) (m) (m) (m) (m)
3,169 644 1,697 192 213 1,142 590
1,207
896 644 774 112 327 127
1,066 923 101 307 327
192 508 136
3.5 3.5
3.5mD 3.5mD WasteTonnes Trucking
(m) (m) (t) (t.km)
124 399 583 978,457
197 156 106,741
124 54 222 351,866
148 205 519,850
OPERATING HorizontalDevelopment OreDrives
DevelopmentDimensions Width Height Diameter Description 5 5 5mWx5mH Tonnes Cu Au Zn Trucking VerticalDevelopment Slots IncludedinStopequantities Tonnes Trucking (m) (kt) (%) (g/t) (%) (t.km) 14,914 1,182 1.22 1.21 0.16 1,711,592 927 69 1.25 0.99 0.10 127,596 6,840 525 1.18 0.99 0.16 843,167 7,147 589 1.25 1.43 0.18 740,829
# (m) (t) (t.km)
351 12,159
6 218
50 1,744
40 1,389
41 1,427
37 1,283
42 1,472
35 1,208
33 1,153
23 782
21 712
14 478
9 295
Stoping ProductionDrilling Blasting Production Tonnes Cu Au Zn Trucking Backfill TopDownStopes BottomUpStopes StopesNotFilled Total
(m) (m) (kt) (%) (g/t) (%) (t.km) (m3,000) (m3,000) (m3,000) (m3,000)
1,026,012 806,152 11,286 1.39 1.38 0.22 37,955,985 1,665 611 596 2,872
11,797 9,269 130 1.31 1.02 0.02
114,641 90,075 1,261 1.39 1.11 0.17
113,908 89,499 1,253 1.33 1.32 0.11
109,226 85,821 1,201 1.40 1.30 0.21
121,608 95,549 1,338 1.39 1.65 0.22
118,059 92,761 1,299 1.38 1.44 0.20
103,924 81,655 1,143 1.45 1.48 0.21
113,501 89,180 1,249 1.38 1.58 0.28
75,681 59,463 832 1.38 1.33 0.28
67,601 53,115 744 1.42 1.18 0.30
46,738 36,723 514 1.45 1.26 0.33
29,327 23,042 323 1.49 1.34 0.29
329,410 3,269,956 4,482,944 4,059,358 4,912,182 4,089,368 3,920,294 4,640,413 2,875,629 2,366,166 1,811,158 1,199,107 15 343 185 138 323 214 97 310 92 134 101 326 210 85 32 328 227 60 2 289 253 53 307 117 41 57 215 9 3 179 191
15
343
135 135
84 84
7 7
VMS ROMFeed Supergene Tonnes Cu Au Zn Tonnes Cu Au Zn (kt) (%) (g/t) (%) (kt) (%) (g/t) (%) 1,802 1.58 1.27 0.06 10,666 1.34 1.38 0.24 36 1.53 1.21 0.07 34 0.96 0.75 0.15 243 1.41 1.11 0.04 411 1.08 0.92 0.18 594 1.44 1.13 0.04 1,255 1.29 1.28 0.24 266 1.31 1.09 0.05 987 1.33 1.39 0.12 220 1.62 1.29 0.09 982 1.35 1.30 0.24 69 2.01 1.14 0.14 1,269 1.35 1.67 0.22 229 1.98 1.66 0.08 1,070 1.25 1.40 0.22 147 2.02 1.89 0.07 996 1.36 1.42 0.23 1,249 1.38 1.58 0.28 832 1.38 1.33 0.28 744 1.42 1.18 0.30 514 1.45 1.26 0.33 323 1.49 1.34 0.29
Primary
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Figure 18.16 Hassai South Underground Stoping Schedule

2,000 1,800 1,600 1,400 1,200
Tonnes(kt)
1,000 800 600 400 200 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14
Period Primary Supergene
18.4.8.2
Hadal Awatib
Surpac was used to report quantities and grades, and custom-built Excel spreadsheets were used for the scheduling of the Hadal Awatib Project. In general, the following steps were undertaken in the scheduling process: Definition of ore and waste within the pit limits using Surpac Production of stage inventories using Surpac Transfer of stage inventories to spreadsheet Produce preliminary schedule.
Although no stage designs were carried out, the pits have been divided in half (East-West) in an effort to try and bring some ore forward in the schedule. The Eastern end had a lower initial pre-strip, so this was used as Stage 1, with Stage 2 being the Western end. Hadal Awatib open pit mining schedules were developed to fill the shortfall from the underground schedule in the required VMS plant feed for each of the feed rate options. Summary schedule data is outlined in Table 18.28, and Figure 18.17 and Figure 18.18 are graphical representations of the mining profile for the 5 Mt/a schedule.
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Table 18.28 Hadal Awatib 5 Mt/a Mining Schedule

MiningScheduleHadalAwatib5MtpaOpenPit
OPENPITMINING Waste Oxide Supergene Primary TotalOre TotalMining TotalOre TotalMining kbcm kbcm kbcm kbcm kbcm kbcm kt kt SR
stage1 stage2 kt kt
Unit
Total
m 1
m 2
m 3
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Y11
Y12
Y13
Y14
28,926 152 2,216 1,911 4,127 33,206 17,266 96,802 4.6 32,008 64,794
0 0 0 0 0 0 0 0 0.0 0 0
0 0 0 0 0 0 0 0 0.0 0 0
0 0 0 0 0 0 0 0 0.0 0 0
6,376 0 0 0 0 6,376 0 17,258 0.0 12,646 4,612
9,133 63 80 0 80 9,276 456 25,316 54.5 12,729 12,587
6,005 33 498 159 656 6,694 2,716 19,236 6.1 6,528 12,708
3,449 56 903 23 926 4,431 3,884 13,542 2.5 105 13,437
2,349 0 730 194 924 3,273 3,756 10,384 1.8 0 10,384
962 0 5 870 875 1,837 3,634 6,362 0.8 0 6,362
652 0 0 666 666 1,318 2,819 4,703 0.7 0 4,703
0 0 0 0 0 0 0 0 0.0 0 0
0 0 0 0 0 0 0 0 0.0 0 0
0 0 0 0 0 0 0 0 0.0 0 0
0 0 0 0 0 0 0 0 0.0 0 0
0 0 0 0 0 0 0 0 0.0 0 0
0 0 0 0 0 0 0 0 0.0 0 0
0 0 0 0 0 0 0 0 0.0 0 0
Total Mining - By Stage
CIPROMFeed Oxide Tonnes Cu Au Zn (kt) (%) (g/t) (%) 372 0.09 4.29 0.02 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 152 0.08 3.47 0.03 81 0.02 3.44 0.01 139 0.13 5.70 0.03 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00
VMSROMFeed Supergene Tonnes Cu Au Zn Tonnes Cu Au Zn (kt) (%) (g/t) (%) (kt) (%) (g/t) (%) 8,891 0.96 0.96 0.63 8,002 1.26 0.88 0.72 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 304 1.07 0.79 0.50 0 0.00 0.00 0.00 1,970 1.37 0.76 0.86 665 1.45 0.80 0.90 3,649 0.85 1.06 0.49 96 1.50 0.89 0.41 2,947 0.81 1.00 0.67 808 1.34 0.87 0.70 20 0.65 1.10 0.54 3,614 1.32 0.88 0.66 0 0.00 0.00 0.00 2,819 1.09 0.91 0.77 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00
Primary
UNDERGROUNDMINING VMSROMFeed Supergene Tonnes Cu Au Zn Tonnes Cu Au Zn (kt) (%) (g/t) (%) (kt) (%) (g/t) (%) 1,802 1.58 1.27 0.06 10,666 1.34 1.38 0.24 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 36 1.53 1.21 0.07 34 0.96 0.75 0.15 243 1.41 1.11 0.04 411 1.08 0.92 0.18 594 1.44 1.13 0.04 1,255 1.29 1.28 0.24 266 1.31 1.09 0.05 987 1.33 1.39 0.12 220 1.62 1.29 0.09 982 1.35 1.30 0.24 69 2.01 1.14 0.14 1,269 1.35 1.67 0.22 229 1.98 1.66 0.08 1,070 1.25 1.40 0.22 147 2.02 1.89 0.07 996 1.36 1.42 0.23 0 0.00 0.00 0.00 1,249 1.38 1.58 0.28 0 0.00 0.00 0.00 832 1.38 1.33 0.28 0 0.00 0.00 0.00 744 1.42 1.18 0.30 0 0.00 0.00 0.00 514 1.45 1.26 0.33 0 0.00 0.00 0.00 323 1.49 1.34 0.29 0 0.00 0.00 0.00 0 0.00 0.00 0.00
Primary
PROCESSSCHEDULE CIPROMFeed Oxide Tonnes Au (kt) (g/t) 372 4.29 0 0.00 0 0.00 0 0.00 69 2.64 116 4.07 187 5.04 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
VMSROMFeed Supergene Tonnes Cu Au Zn Tonnes Cu Au Zn Tonnes Cu Au Zn (kt) (%) (g/t) (%) (kt) (%) (g/t) (%) (kt) (%) (g/t) (%) 10,694 1.07 1.02 0.54 18,668 1.30 1.17 0.44 29,362 1.22 1.11 0.48 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00 2,501 1.35 0.86 0.59 1,799 1.28 1.08 0.38 4,300 1.32 0.95 0.50 3,678 0.97 1.03 0.48 1,322 1.34 1.22 0.28 5,000 1.07 1.08 0.43 3,284 0.87 1.03 0.61 1,716 1.35 1.15 0.41 5,000 1.04 1.07 0.54 697 0.96 1.04 0.57 4,303 1.33 1.09 0.54 5,000 1.28 1.08 0.54 368 1.56 1.40 0.28 4,632 1.17 1.05 0.60 5,000 1.20 1.08 0.58 166 1.97 1.84 0.10 1,235 1.33 1.35 0.30 1,401 1.40 1.41 0.28 0 0.00 0.00 0.00 1,249 1.38 1.58 0.28 1,249 1.38 1.58 0.28 0 0.00 0.00 0.00 832 1.38 1.33 0.28 832 1.38 1.33 0.28 0 0.00 0.00 0.00 744 1.42 1.18 0.30 744 1.42 1.18 0.30 0 0.00 0.00 0.00 514 1.45 1.26 0.33 514 1.45 1.26 0.33 0 0.00 0.00 0.00 323 1.49 1.34 0.29 323 1.49 1.34 0.29 0 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0.00
Primary
TOTALVMS
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Figure 18.17 Hadal Awatib 5 Mt/a Ore Profile

4,000 3,500 3,000 2,500
Tonnes(kt)
2,000 1,500 1,000 500 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Period Primary Supergene
Figure 18.18 Hadal Awatib 5 Mt/a Mining Profile

30,000
25,000
20,000
Tonnes(kt)
15,000
10,000
5,000
0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Period Waste Oxide Primary Supergene
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18.4.9
Mine Operating Costs
Due to the lack of experience locally in Sudan, the assumption has been made that all underground mining will be carried out by a suitably qualified expatriate mining contractor. Underground mining costs have been derived from an AMEC Minproc internal cost database. For open pit mining, it has been assumed that an entirely new mining fleet will need to be purchased for the VMS open pit mining, and that this will be operated by the existing labour force. The excavator fleet assumed is similar to the largest diggers currently on site (120 t); however the trucking fleet has been increased to 90 t trucks, which are a better fit for this size of excavator. Open pit mining costs have been derived from the historical AMC site operating cost data along with the AMEC Minproc internal cost database. 18.4.9.1 Hassai South
A breakdown of the allowances is as follows: Horizontal Development: operating horizontal development cost includes all ore drive development costs. Vertical Development: vertical development cost includes all stoping slot development costs. Slots have been assumed to be developed using a raise bore between 30 m levels. Drill and Blast: includes all stope production and drilling costs. Development drill and blast costs have been included in the horizontal development costs. Material Movement: material movement cost includes all costs associated with the bogging and trucking of both development and stope tonnes. Backfill: costs include all costs associated with the backfilling of stopes with paste fill. The unit operating cost applied includes an allowance for the extension of paste fill lines. In an effort to reduce costs, paste fill cost was not included for the crown pillar retreats. The assumption was made that rib pillar locations could be found that wouldnt impact significantly on the total stope tonnes and grades, thus no additional ore loss was applied for the crown pillar removals. Although this was considered reasonable for a scoping study evaluation, moving forward an assessment will need to be carried out to determine the method for crown pillar removal, and what additional measures may be required (ie rib pillar sizes, fill every second stope, cost saving versus ore loss trade-off, etc.). Mine Services: mine services is an allowance for all underground service related items such as the installation, operation, maintenance, relocation and removal of the following: Secondary ventilation Compressed air lines and compressor costs Water and pump lines and pump costs Power feed lines and supply costs Communication lines Firing lines
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Supervision and Control: an allowance for all management of the underground operations such as: Mine management Contract management Supervision Mining engineering Survey control Geological control Safety/environmental
Owners costs for the management and control of the operations have also been allowed.
Summary unit cost data is outlined in Table 18.29.

Table 18.29 Unit Operating Costs Hassai South Underground VMS Ore Mined Unit Operating Costs Horizontal development Vertical development Drill and blast Material movement Backfill Mine services Supervision and control Total Underground ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) 2.98 0.98 4.23 6.02 1.96 3.00 7.00 26.17 (Mt) 12.5
18.4.9.2
Hadal Awatib
Open Pit Operating Costs Drill and Blast: site unit costs were used for drill and blast cost; drilling cost is assumed to include grade control drilling. The following unit costs were applied: Drilling $0.36/t Blasting $0.21/t
Applying these unit costs equates to approximately $1.66/bcm mined. Load and Haul: load and haul costs have been built up from the AMEC Minproc internal cost database, from typical hourly operating costs. Unit costs applied excluded fuel and labour, as these were tabulated separately. Cycle times were calculated using approximate haulage destinations for both ore and waste Ancillary: ancillary equipment costs have been built up from the AMEC Minproc internal cost database, applying typical hourly operating costs. Unit costs applied excluded fuel and labour, as these were tabulated separately Ore Overhaul to Plant: site unit costs were used for ore overhaul cost ($0.21/t.km). The average haul distance applied was 12 km, and it was assumed this rate included labour and fuel
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Fuel: typical fuel burn rates for the mining fleet were used to calculate the fuel usage, and the fuel cost supplied by site was applied ($0.41/L) Hydrology: an allowance for pit dewatering, ground support and activities associated with mining significantly larger and deeper pits than is currently underway Labour: a typical labour force was built up based on the size of the operations and numbers of mining fleet. Local labour rates provided by AMC were applied to calculate the total labour cost General: the majority of the general mining costs were included in the plant G&A cost, eg. laboratory services, accommodation and flights, environmental, contractors and consultants, freight and logistics, emergency response and ERT, and safety. However, the following has been allowed for under this line item: Survey and GC consumables Safety and training consumables Mining software and computing upkeep Open pit office costs Mine dispatch support.
Adjustments Hadal Awatib Operating Costs It has been assumed that 100% of the fleet operating costs are attributed to Hadal Awatib, as the equipment is assumed to be fully utilised in that pit. Table 18.30 outlines the unit operating cost data for the 5 Mt/a schedule.
Table 18.30 Unit Operating Costs Hadal Awatib Open Pit CIL ore mined VMS ore mined Waste mined Total Mined Unit Operating Costs Drill and blast Load and haul Ancillary Ore overhaul to plant Fuel Hydrology Labour General Total Open Pit ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t) 2.33 3.06 2.07 2.58 1.79 0.39 1.47 0.44 14.14 2.47 (Mt) (Mt) (Mt) (Mt) 0.4 16.9 79.5 96.8
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18.4.10
Mine Capital Costs
As the underground operating costs have been based around typical contract rates, equipment capital recovery is built into the contractor rates, and, as such, no allowance is made for mining fleet purchase/sustaining capital. Costs associated with underground infrastructure and the capital development (such as decline development) have been included as capital items. For open pit mining, it has been assumed that an entirely new mining fleet will be purchased for the VMS open pit mining, and that this will be operated by the existing labour force. It should be noted that no significant additional costs have been allowed for landing new equipment in Sudan (ie. import taxes, duties, etc.). This needs to be investigated in the next level of study. 18.4.10.1 Hassai South
The capital cost summary for Hassai South underground is outlined in Table 18.31.
Table 18.31 Capital Cost Summary Hassai South Underground VMS Ore Mined Capital Costs Infrastructure Horizontal Development Vertical Development Material Movement Total Underground Unit Capital Costs Infrastructure Horizontal Development Vertical Development Material Movement Total Underground ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) 2.50 1.74 0.17 0.21 4.62 ($M) ($M) ($M) ($M) ($M) 31.2 21.7 2.1 2.6 57.6 (Mt) 12.5
Costs associated with infrastructure and the capital development (such as decline development) have been included as capital items. The following items have been allowed for in the capital cost estimate. Infrastructure: infrastructure has an allowance for the following capital items: Preliminary works: geotechnical, contractor mobilisation, contractor demobilisation, rehabilitation and raise bore mobilisation Surface works: repair to site roads, stabilise/repair pit wall failures, raw water supply, potable water supply, waste dump works Buildings: offices, workshop, surface magazine, wash-down bay, air compressor, and communications Office equipment: furniture, computer hardware, computer software, survey equipment, and ventilation equipment Safety equipment: emergency response, cap lamps, self rescuers, and ER vehicle Light vehicles
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Portal: decline portal works Ventilation: main ventilation fans and equipment, regulators, vent doors (drive through), pump stations, electrical supply and communications UG infrastructure: refuge chambers, ladder ways, refuelling bay, service bay, magazine, crib room, and toilets Paste plant: including borehole and initial pipe-work
Horizontal Development: capital includes all decline, incline and link drive development costs, as well as all access drives, and ventilation drives Vertical Development: capital includes all ventilation and ladder way rises Material Movement: material movement costs include all costs associated with the bogging and trucking of capital development tonnes. Hadal Awatib
18.4.10.2
It has been assumed that an entirely new mining fleet will need to be purchased for the VMS open pit mining, comprising 120 t excavators and 90 t trucks. Replacement capital has been included as required when the replacement hours have been surpassed. Table 18.32 outlines the capital cost data for the 5 Mt/a schedule.
Table 18.32 Capital Cost Summary Hadal Awatib Open Pit Options CIL ore mined VMS ore mined Waste mined Total Mined Capital Costs Infrastructure Hydrology Equipment Mine Services Capital Mine administration and technical operating Total Open Pit Unit Capital Costs Infrastructure Hydrology Equipment Mine services capital Mine administration and technical operating Total Open Pit ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) ($/t ore) 0.30 0.00 4.71 0.00 0.00 5.00 ($M) ($M) ($M) ($M) ($M) ($M) 5.0 0.0 79.6 0.0 0.0 84.6 (Mt) (Mt) (Mt) (Mt) 0.4 16.9 79.5 96.8
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18.5 18.5.1
GEOTECHNICAL INPUT Kamoeb South AMC
At least 16 samples were previously taken to assess the density of the wall rock, and an average of 2.8 g/cm3 was calculated. RQD information was routinely measured during core logging. A 3-D surface was modelled to correspond to RQD >95%. In addition to economic parameters, slope design was also defined according to rock type and RQD surface. The parameters proposed for Kamoeb South are as follows: Slope angle between 40 and 60, depending on the wall Final bench height: 10 m Bench height: 2.5 m, rarely 5 m Bench angle: 55 to 80 Ramp width: 23 m; 15 m for the last 2 benches Ramp slope angle: 8%; 10% for the last 2 benches.
The pits are designed to accommodate 40 to 60 t trucks. 18.5.2 AMEC Geotechnical Input Introduction
A site visit was made by Adam Coulson of AMEC to inspect conditions in the existing open pits, particularly Hadal Awatib East and Hassai South. Limited bench scale mapping was undertaken to confirm rock mass classification and major joint set orientation, while eight diamond drill hole cores were reviewed. Data was also collected and reviewed from previous geotechnical studies, while discussions were held with the mine manager and senior mine geologist. From this information, scoping study level rock mass classification for the Q-system (Barton et. al., 1974), the CSIR Rock Mass Rating (RMR) classification system (Bieniawski, 1976 &1989), Geological Strength Index (GSI) (Hoek et. al., 1995) and Laubscher's Mining Rock Mass Rating (MRMR) (Laubscher, 1990) have been made for the two key domains at Hadal Awatib East and Hassai South. 18.5.3 18.5.3.1 Geotechnical/Geological Domains Domain 1: Green Chlorite Schist (SCHI) Foliation appears to be
Metamorphosed andesite, foliated parallel to the orebody strike and dip. stronger at Hassai South. This unit forms the wall rock at both deposits. 18.5.3.2 Domain 2: Volcanogenic Massive Sulphides (VMS)
The massive sulphides forming the orebodies are generally fine grained, pyritic and homogenous through the centre of the intersections but can be interbedded or disseminated at the wall rock contacts. Significant microfracturing exists in the fine grained VMS, and may be a result of post extraction oxidisation. At Hadal Awatib, 1 cm-spaced fracturing perpendicular to the core axis may indicate a low tensile strength of the material, or high stress.
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18.5.3.3
Domain 3: Diorite and Basic Dykes (DYK)
These are identified at both deposits, but are more prevalent at Hadal Awatib. These dykes are generally 1-2 m thick, but may exist in swarms. These dykes cut the mineralisation and do not appear to cause a structural problem for pit wall stability, but could be a source of stope dilution. 18.5.4 Major Joint Set Orientation
Based on preliminary baseline bench mapping, the major joint sets that govern stability of the pit walls and of the underground deposit have been identified in Figure 18.19 with joint orientation summarised in Table 18.33. It should be noted that these joint orientations pertain to the wall rock; during the site visit it was not possible to observe the jointing within the VMS, which can only be obtained for oriented core or transverse exposure. Consequently, jointing in the VMS has been assumed. At both locations the dominant joint set is related to the foliation joint set which appeared to be more strongly defined at Hassai South, followed by a vertical to sub-vertical joint set and a horizontal to subhorizontal joint set generally dipping at 10o to the north. A sporadic but relatively persistent sub-vertical joint set was identified, and may have been the potential initiator of the wedge/plane failures that have occurred in the south walls of some existing pits (eg. Hassai South southern pit wall).
Table 18.33 Summary of Probable Major Joint Set Orientations Typical Pit Domain Hadal Awatib Green Chlorite Schist North and South Pit Walls HW, Central and FW Rock Hassai South Green Chlorite Schist North and South Pit Walls HW and FW Rock Hassai South VMS (Typical Assumed Orientations) Joint Set 1 (Sub Vertical Foliation) 2 (Horizontal) 3 (Vertical Joints and Dykes) 4 (Sub Vertical Sparse/Random) 1 (Vertical Foliation) 2 (Horizontal) 3 (Vertical Joints and Dykes) 4 (Sub Vertical Sparse/Random) 1 (Sub Vertical Orebody Dip) 2 (Horizontal) 3 (Vertical) Random
1
Spacing (m) 0.5 to 1 5 to 10 2 to 4 > 10 0.1 to 0.75 2 to 3 2 to 4 > 10 3 5 5
Strike1 ( ) 073 213 223 213 083 273 314 293 090 270 180 --o
Dip ( ) 65 10 79 38 63 10 73 48 60 10 90 --o
Strike is based on the right-hand rule.
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Figure 18.19 Bench Face Mapping (a) and (b) poles and contours for Hassai South , (c) and (d) Hadal Awatib
a. HAS
Foliation
b. HAS
Horizontal Joints Sub Vertical Joints Dykes and Vertical Joints
c. HAE
Foliation
d. HAE
Horizontal Joints
Sub Vertical Joints
Dykes and Vertical Joints
The assumed joint set orientations in the VMS forms the basis for determination of open stoping dimensioning using the Mathews-Potvin Open Stope Stability graph method.
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18.5.5
Material Testing
At present, limited material testing (11 uniaxial compressive tests, 8 Brazilian tensile, 5 direct shear tests and 12 basic friction angle tests) has been performed at Ariab, and most tests have concentrated on the weaker gossan and chlorite schists, with no testing performed on fresh VMS. The summary of these test results as they are stated in the INTECSA-INARSA report (2002), including assumed values for the VMS, are summarised in Table 18.34.
Table 18.34 Summary of Previous Laboratory Testing Rock Type Density (t/m3) SCHI Clayey Schist Gossan VMS 2.65 - 2.69 2.1 - 2.4 2.3 4.5 - 5 UCS (MPa) 110 16 <15 150 Tensile Strength (MPa) 9.9 13.7 ----Young's Modulus (GPa) 72.5 19.6 ----Direct Shear C (MPa) 0.02 ------28 ------Intecsa-Inarsa (2002) Intecsa-Inarsa (2002) Intecsa-Inarsa (2002) Assumed AMEC 2010 phi Reference
18.5.6
Rock Mass Classification
Rock mass classification for the open pits was performed from bench mapping with additional review and basic logging of selected drill hole cores from both orebodies. Core in the VMS and contacts was either half split or quarter split, making exact verification of RQDs within this unit difficult, however, information on natural joint conditions could be determined. It is important to note that these are only preliminary estimations and for further studies additional geotechnical data should be obtained through bench mapping, geotechnical logging of oriented core, hydrogeological investigations and additional rock strength testing. The summarised average joint properties based on Barton's Q-system and determined rock mass classification based on RMR (Bieniawski, 1976,1989), and GSI (Hoek et. al., 1995) from the core logging are summarised for the two VMS deposits on Table 18.35 and Table 18.36.
Table 18.35 Hadal Awatib Summary of Rock Mass Properties by Domain and Stope Zone Borehole Rock Type FF AVG (Joint/m) Hadal Awatib Combined Per Zone HW SCHI HW VMS MID SCHI FW VMS FW SCHI 1.25 7.17 1.12 3.95 1.32 RQD AVG (%) 72 72 91 80 85 12 12 12 12 12 1.6 1.5 1.6 1.6 1.5 1.4 0.8 1.1 0.8 1.1 7.2 12.4 12.6 13.8 9.9 Jn
Assumed
Jr AVG
Ja AVG
Q' AVG
RMR'76 AVG Calc 61 63 66 67 64
RMR' 89 AVG 69 63 72 70 75
GSI AVG 64 58 67 65 70
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Table 18.36 Hassai South Summary of rock Mass Properties by Domain and Stope Zone Borehole Rock Type Hasai South Combined Per Zone HW SCHI Ore VMS FW SCHI DVMS
1
FF AVG (Joint/m) 1.47 2.48 2.83 2.76
RQD AVG (%) 96 90 92 92
Jn
Assumed
Jr AVG 1.4 1.6 1.4 1.1
Ja AVG 1.2 0.8 1.4 1.5
Q' AVG 10.5 14.4 7.7 5.5
RMR'76 AVG Calc 65 68 62 59
RMR' 89 AVG 74 71 67 64
GSI AVG 69 66 62 59
12 12 12 12
Note the average RQDs (based on AMC logging), and joint properties are based on the averages for each domain. The joint number (Jn) of 12 (3 joint sets plus random) has been assumed for all domains based on the major joint sets identified from mapping, except for the Dyke in which a Jn of 9 (3 joint sets) has been assumed. The values for Q' are determined on the average joint characteristic per interval, and the value of RMR'76 is calculated using Bieniawski's equation (RMR = 9LogeQ' + 44). The values of RMR'89 are calculated independently based on the average joint and rock mass characteristic per interval, and used through the GSI (GSI = RMR'76 = RMR'89 5), to compare agreement of values. Verification of the RQDs on intact core was performed and it was determined that the values determined by AMC are reasonable. As can be seen for both deposits, the overall rock mass rating for VMS is slightly greater than the wallrock SCHI. The RQD values tend to be lower in the VMS, however, this is offset by better joint conditions than in the SCHI. The ore zone can be classified as a Fair to Good rock mass based on the Q-system and the SCHI can be classified as a Fair rock mass. Overall the VMS ore zone at Hassai South is slight better quality than at Hadal Awatib, while the converse is true of the SCHI. The relevance of the core discing identified at Hadal Awatib needs to be verified with material testing, as does the appearance of microfracturing. At this stage there is no significant difference in the rock mass quality between the supergene and the primary zones. These general values will be used for the scoping-level underground mining design. The rock mass classification for the open pits is based on the bench mapping and using the average RQDs determined from the core logging. The summary of the bench joint mapping for each deposit is summarised in Table 18.37.
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Table 18.37 Summary of Bench Face Rock Mass Classification Wall Hadal Awatib Link South Hassai South South Wall
1 2
Rock Type HW SCHI DIO DYK Gossan

2
RQD
Assumed
Jn
Assumed
Jr AVG 1.6 1.5 1.0 1.7
Ja AVG 1.2 1.3 3.0 1.3
Q' AVG 10.3 11.3 0.3 9.6
RMR'76 AVG Calc 65 66 33 65
RMR'8 9 AVG 71 64 --72
GSI AVG 66 59 33 67
MRMR1 AVG 45 40 20 45
(%) 90 85 10 90
12 9 12 12
HW SCHI
Fault
10
15
1.0
10.0
0.1
20
34
29
13
MRMR Adjustment Factors: Weathering = 1 and 0.9 (Gossan); Joint Orientation = 0.85; Blasting = 0.8; Stress = 1.0 A single Gossan exposure was reviewed on the West wall of Hadal Awatib by the ramp and values have been estimated.
The rock mass ratings agree relatively well with those obtain from the core logging for the SCHI and have been used as the basis for empirical slope evaluation. 18.5.6.1 In Situ Stress Regime
At present, no in situ stress data exists for the region, however, the majority of the major faults trend NW-SE and would infer a maximum principal stress direction oriented WNW-ESE, to initiate shear deformation and folding. However, for this study a worst case local stress orientation for the Hassai South deposit has been assumed to be oriented in a north-south direction, based on similar observed maximum principal stress orientation perpendicular to the orebody strike and foliation such as at Brunswick Mine (Canada) and Mount Isa Mines (Australia). Generally, for tabular orebodies similar to the Hassai VMS deposit the eventual induced stress direction becomes oriented perpendicular to the orebody strike after progressive mining. Additionally, the present pit will have disturbed the in situ stress orientation such that a north-south direction is more appropriate. The stress magnitudes are also unknown, and are assumed based on experience, for assessment of stope dimensioning (Table 18.38).
Table 18.38 Summary of Assumed in situ Stress Regime Principal Stress 1 (Horiz) 2 (horiz) 3 (Vert)1
1
Mag (MPa/m) 0.0405 0.0324 0.027
Plunge 0 0 90
Trend 000 090 000
K (1/3) 1.5 1.2 1
MPa @ 300 m Depth 12.1 9.7 8.1
Average Overburden Density = 2.75 t/m
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18.5.7
Design Criteria for Hadal Awatib and Hassai South Open Pits
For this level of study detailed slope stability analysis is not warranted based on the present level of information. Preliminary assessment of potential inter-ramp angles (IRAs) has been performed based on the empirical pit slope design chart developed from open pit experience in the mining industry (after Laubscher, 1990). This acts as a basis for assessment and comparison to existing pit slopes and performance, but is only a guide and not a definitive design tool. Based on estimated maximum pit depths at Hadal Awatib and Hassai South of approximately 170 m and 150 m respectively, the basic IRAs, including a design factor of safety of approximately 1.35, are as follows: Gossan 44o Hadal Awatib 47o Hassai South 49o.
These IRAs are broadly in-line with previous studies for Hadal Awatib (INTECSA-INARSA (2002) and Hadayamet (ANETA, 1999)) in which limit equilibrium analysis was performed (albeit based on limited testing and mapping data), determining that for a 90 m deep pit the maximum IRA in SCHI should not exceed 50o to 55o, and for gossan 43o to 46o. The pit slope design criteria has been further refined based on the preliminary joint orientations and review of the existing pits in the following sections. The design criteria have been based on the current mine fleet and operating practice which includes 10 m high benches and bench widths varying from 4 to 8 m, dependent on rock mass conditions. A review of conditions in the existing Hadal Awatib and Hassai South pits indicates that current design criteria have worked relatively well, with the following observations: Hadal Awatib A minor bench wedge failure was noted in the South wall, but is localised to two benches and, based on the clean catch benches below, was probably noted and removed during the final wall mining. A review of the existing bench face or batter angles, bench widths and IRAs was made. Preliminary kinematic stability assessment suggests that the face angle in the North wall should be matched to the foliation dip to prevent sliding failure, while in the South wall toppling failure potential exists and the bench face angle can be increased but a larger berm width should be developed. Generally, the actual bench face angle in the North wall has been matched to the dominant foliation (Table 18.39 and Table 18.40), which is standard practice, and the South wall has been steepened, with an increase in the berm width. Based on the performance of the North wall at Hassai South and the slightly lower wall height of the North wall (130 m versus 170 m), there is the potential to increase the IRA of the North wall by reducing the berm width. One issue with the reduction in berm width to 4 m is that wall control becomes important for the final pit wall, as this narrow width can be significantly reduced with back break, making the function of the catch berm ineffective. Controlled blasting using a pre-shear is recommended for the North wall with the reduced berm width. Other potential options would be to increase the bench height to 15 m, such that the berm width could be increased to 6 m.
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Table 18.39 Hadal Awatib Summary of Existing and Proposed Slope Design Crieria N. Wall Hadal Awatib (Hadal Awatib) Units Actual Avg SCHI Bench Height Berm (Bench) Width Bench Berm Spacing Batter Angle (BFA) Wall Height Inter Ramp Wall Angle (IRA) m m # deg m deg 10 5.2 1 66.4 70 45 10 5 1 65 30 46.0 10 4 1 65 130 49.1 N. Wall Gossan N. Wall SCHI S. Wall Actual Avg SCHI 10 6.78 1 77.6 100 48 10 7 1 75 30 45.9 10 6.5 1 75 170 47.4 S. Wall Gossan S. Wall SCHI
Hassai South Review of the Hassai South pit indicates that the current pit design criteria has worked relatively well for the north wall of the Hassai pit. However, the south pit wall has suffered two failures, the smaller being a two to three bench wedge/plane failure in the west end of the pit and the larger failure over five to six benches in the east end. The former failure is based on the formation of a wedge developed on sub-vertical jointing, and is relatively minor in comparison to the later failure which could have occurred through a number of factors: failure on a similar structure with toppling failure, failure on a fault or shear, or over-steepening of the South pit wall beyond a stable slope angle. A review of the actual bench face angle, berm widths and IRAs for a typical section is summarised, with the design recommendations for pit deepening in Table 18.40. As can be seen, the South wall was developed relatively steeply, with limited berm widths - some of these were noted to be under 3 m. Plane failure along the foliation set will dominate in the North wall and requires flattening the bench face angle to the foliation. Toppling failure on the same set in the South wall, in which the face angle could have been steepened, however, the berm width should also have been increased. This was not the case here for the South wall. This failure was reported to occurred close to a year after completion, but was not the result of a precipitation event. A tension gash at the crest of the pit was identified and monitored up until the pit was completed, but was not monitored following this and the exact failure date is unknown. Based on the identification of the sub-vertical dipping structure, which may have been an initiator, the proposed IRA for the South wall has been reduced to below this, such that similar failure would only result in single bench failures.
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Table 18.40 Hassai South Summary of Existing and Proposed Slope Design Criteria N. Wall Hassai South Bench Height Berm (Bench) Width Bench Berm Spacing Batter (Bench Face) Angle Wall Height Inter Ramp Wall Angle Units m m # degrees m degrees Actual Avg SCHI 10 4.2 1 63.9 90 47.5 10 4 1 64 140 48.40 N. Wall SCHI S. Wall Actual Avg SCHI 10 3.2 1 67.4 100 54.2 10 7 1 75.00 150 45.93 S. Wall SCHI
18.5.8
Design Criteria for Hassai South Underground Open Stoping
The general thickness (5 to 40 m), dip of the orebodies (60o to 70o), and lateral and vertical extent, suggests that sub-level open stoping (SLOC) with backfill is the most suited mining method. Stope dimension recommendations are based on a combination of the empirical Modified Stability Graph method (Potvin, 1988; Nickson 1992, Hadjigeorgiou et. al., 1995) and estimation of stress through numerical stress modelling or analytical methods. Preliminary stope dimensions are based on the former with an estimate of the induced stress conditions based on experience using the Kirsch stress approximation (Hoek and Brown, 1980). Underground mining of the Hadal Awatib deposit has not been considered at this time, primarily due to the complexity of the multiple lenses. Hassai South contains a supergene zone of around 20 to 30 m thickness below the bottom of the pit with the bulk of the orebody contained within the primary ore zone (Figure 18.20). Underground mining consideration has been given to preferential extraction of the supergene zone directly below the bottom of the pit in the early stages of mining. In order to achieve, this backfilling of smaller stopes with rib pillars will be essential in order to maintain stability of the overhanging South pit wall. Additionally, paste backfill is recommended to reduce the potential for surface water infiltration through storm events, which could flood the bottom of the pit. A nominal temporary crown pillar below this zone has been considered to allow separation of the upper supergene zone - which can be mined in a top-down sequence - from the lower zone which could commence in a bottom-up primary-secondary stope sequence. This pillar will add additional stability to the zone and provide an additional barrier against potential water infiltration. The intention would be to mine this lower grade pillar at the completion of mining at a lower extraction ratio. The advantages of a bottom-up sequence versus top-down, are increased stability and lower binder (cement) costs for stopes. 18.5.8.1 Open Stope Dimensioning
Based on preliminary core logging, simplified rock mass properties have been assumed (Table 18.41). As joint orientation data is not known for the ore zone and is limited for the country rock, two rock mass qualities based on the number of potential joint sets have been considered to obtain an upper and lower boundary for the ore and country rock.
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Figure 18.20 Hassai South Underground Deposit Development
Super Gene Zone Crown Pillar
Primary Zone
Table 18.41 Summary of Simplified Design Rock Mass Properties Stope Zone and Rock Unit Ore Zone (VMS) Upper Boundary Ore Zone (VMS) Lower Boundary HW/FW SCHI Upper Boundary HW/FW SCHI Upper Boundary UCS (MPa) 150 150 110 110 88 88 100 100 9 12 9 12 1.5 1.5 1.3 1.3 0.75 0.75 1.25 1.25 19.6 14.7 11.6 8.7 71 68 66 64 RQD Jn Jr Ja Q' RMR'76
This range of Q' values is used with the Modified Open Stope Stability factors to determine a stability number, N'. For this analysis the A=factor - which is related to induced stress and the intact strength (UCS) of the rock - has been assumed as 1.0 for hanging walls, indicating a relaxed stope surface under low stress. A stress factor of 2 (based on the Kirsch equations, Hoek an Brown, 1980) has been applied to determine induced stresses for a mean average depth of 300 m below surface. The current deepest stope considered in this study is 420 m below surface. Evaluation of the grade cut-off shells applied to the zone indicates that the hanging walls of the stope can vary in dip between 60o and 70o. This change in the dip affects the stability of the hanging wall and has also been evaluated in determination of potential stope dimensions. The determined stability numbers and calculated recommended hydraulic radii (HR, =Area/Perimeter) based on unsupported and supported stope surfaces are summarised in Table 18.42, and have been plotted on the empirical stability graph Figure 18.21. It should be noted that the design line for the unsupported case is in the unsupported transition zone and thus assumes only temporary stability of one to two months, which can be achieved using paste backfill.
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Table 18.42 Summary of Stope Surface Stability Criteria Lower Bound Case HW Criteria (60 ) HW Criteria (70 o) Back Criteria Ore End Wall Criteria - Ore Upper Bound Case HW Criteria (60 o) HW Criteria (70 ) Back Criteria Ore End Wall Criteria - Ore
o o
Rock Type SCHI SCHI VMS VMS SCHI SCHI VMS VMS
UCS (MPa) 110.0 110.0 150.0 150.0 110.0 110.0 150.0 150.0
Q' 8.7 8.7 14.7 14.7 11.6 11.6 19.6 19.6
A 1.0 1.0 0.55 0.55 1.0 1.0 0.55 0.55
B 0.3 0.3 0.2 0.3 0.3 0.3 0.2 0.3
C 5.0 5.9 2 8 5.0 5.9 2.0 8.0
N' 13.0 15.3 3.2 19.4 17.3 20.5 4.3 25.8
HR 8.2 8.7 5.2 9.4 9.0 9.6 5.7 10.4
HR 10.3 10.6 8.4 --10.7 11.0 8.8 ---
Unsupported Supported
Figure 18.21 Hassai South Open Stope Stability Chart Design Guidelines
Modified Stability Graph (after Potvin, 1988 modified, Nickson 1992, Hadjigeorgiou et. al, 1995)
1000
Stable Zone
100 Unsupported Design Line
Stability Number, N'
Unsupported Supergene HW Transition Zone 10
Supported Transition Zone
Upper Bound
Stable With Support 1
Lower Bound
Caved Zone
Supported Design Line
HW - 60 deg HW - 70 deg Back Ends
0.1 0 5 10 15
Hydrauliuc Radius (m)
20 25 (ref. Hoek et. al., 1995)
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Based on these hydraulic radii, recommended stope dimensions have been determined as follows: Hanging Wall Dimensions The potential hanging wall dimensions for an assumed sub-level interval of 30 m (floor to floor) considering 5 m high drifts are: Unsupported Case 70o Hanging wall: Unsupported Strike Length = 33 to 41 m 60o Hanging wall: Unsupported Strike Length = 28 to 34 m
Supported Case (Garford Cables) 70o Hanging wall: Supported Strike Length = 51 to 56 m 60o Hanging wall: Supported Strike Length = 43 to 48 m
Recommendations: from a cost perspective, an unsupported hanging wall is preferable, hence for this study a recommended maximum strike length of 30 m has been considered for primary (and secondary) stopes. Back Dimensions Based on the hanging wall evaluation, assuming stopes will be 30 m along strike: Unsupported Case Stope Strike 30 m = Unsupported Ore Thickness = 16 to 18 m Supported Case (Garford Cables) Stope Strike 30 m = Supported Ore Thickness = 38 to 42 m Recommendations: Panel stopes if ore thickness > 17 m (ie mine the hanging wall stope at a maximum ore width of 17 m, then backfill, followed by mining and backfilling of the footwall stope) or install cable bolt support (Garford Cables) and mine full width up to 40 m. End Walls Based on a sub-level spacing of 30 m: Unsupported Case Stope Sub-level Spacing 30 m, Unsupported Ore Thickness = 50 to 68 m Recommendations: Stope end walls should not be a problem and should be stable based on the current assumptions. For the supergene zone the sub-level spacing has been reduced to 20 m and smaller stopes will be mined to increase stability below the bottom of the open pit on the South pit wall. Additionally, as these stopes will be mined using a top-down sequence with in-pit drilling, mining the stopes below this zone will require mining under backfill, and thus a smaller dimension is preferable to reduce the potential for failure of the paste fill. As no back will be maintained, the critical surface is the hanging wall, and
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stopes have been reduced to 20 m along strike. Assuming a hanging wall dip of 60o the resultant HR = 5.7. Additionally, in order to maintain global stability of the South wall for the current study, 10 m wide (along strike) rib pillars have been proposed every 40 m along strike. Below the bottom of the supergene zone, a crown pillar of 20 to 30 m high is recommended. For the present study these pillars have not been evaluated for stability, and would require numerical stress modelling for confirmation. 18.5.8.2 Other Mining Considerations
At the present time the portal location is assumed to be located in the far west end of the pit continuing on from the current pit ramp. At this time no consideration has been given to the general stability of the ramp or portal in relation to mining of the supergene mineralisation, or to the rock mass conditions. Consideration as to the stability of the main access in relation mining should be undertaken as part of any further studies. A preliminary mining block sequence has been assumed for the study, but detailed stope sequencing has not been considered and requires more detailed rock mechanics data for assessment in combination with numerical stress modelling. This should also include assessment of the underground infrastructure in relation to mining. One key consideration that has not been addressed in this study is the effective mining below the present wall failure in the open pit. Potential options that need to be considered are the stabilisation of the upper wall of the open pit around the failure, through a partial cut-back of the affected zone, and cleaning and removal remotely of failed material with stabilisation of the pit wall using ground support, or a reduced recovery of the immediate ore below this failure. 18.6 HYDROGEOLOGY AND HYDROLOGY INPUT
Since mining to-date has taken place above the water table, no hydrogeological studies of the mine area have been undertaken. Minor water is present in the base of some pits, and the appearance of VMS ore marks the water table level. During open pit mining at Hadal Awatib East and Hassai South, subterranean water appeared in the supergene zone, between 10 and 20 m above the massive sulphides. Little data is available for flowrates; values of 13 m3/h and 3-5 m3/h were recorded for Hadal Awatib and Hassai South, respectively; transmissivity was weak. Chemical analyses of the water are shown in Table 18.43. Groundwater is strongly acid, and high in sulphates and iron, with often high Cu and Zn present, as expected.
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Table 18.43 Groundwater Chemical Analysis, Hadal Awatib and Hassai South Parameter pH Fe (mg/L) Cu (mg/L) Zn (mg/L) Mg (mg/L) SO4 (mg/L) Hadal Awatib 1.9 64 000 21 1515 2800 110000 Hassai South 1.22 - 2.89 10 000 35 000 410 - 1610 251 - 1220
Open pit wall design assumes dewatered/depressurised wall conditions, while underground design assumes minimal pumping of water from the workings. These assumptions need to be confirmed as part of any feasibility study for the VMS concentrator project. The climate is very dry with rare precipitation. However, wadis are present, marking intermittent surface drainage channels, and need to be taken into account in mine, plant and waste management design. 18.7 SEISMICITY
A preliminary assessment of the seismic risk at the Hassai Project site was undertaken. Although Sudan is generally characterised by low seismic activity, several large earthquakes which have resulted in loss of life and damage to property have been recorded. A search of the USGS database covering the period 1973 to date identified 157 events of magnitude >M4 within 600 km of the site. However, the vast majority of these were associated with the main East African Rift following the Red Sea, with epicentres typically >300 km from site. The site can therefore be described as being relatively aseismic. It is unlikely that events associated with the Red Sea fault system will be felt at site. The peak ground acceleration (pga) at site associated with an M4.3 event, 300 km away, will probably be less than 0.01 g (based on typical attenuation laws). Nonetheless, apparently random events do occur, such as a single M4.3 event some 180 km from site in 1973. It is difficult to predict where and when such events will occur. For that reason, a pga of 0.05 g has been adopted for conservative reasons for preliminary feasibility design purposes. This is slightly more than that inferred by the USGS Hazard map for Africa and Europe. 18.8 18.8.1 PROCESS PLANT DESCRIPTIONS CIL Plant
The process plant is designed to process 3.0 Mt/a, comprising of 2.0 Mt/a of heap leach residue and 1.0 Mt/a of fresh ore. The flow sheet is based on conventional comminution and CIL processes. The plant design is based on ore feed grades of 5.0 g/t Au and 4.0 g/t Ag for the fresh ore, and 1.5 g/t Au and 1.2 g/t Ag for the reclaimed heap leach material. Leach extractions of 90.2% Au and 70.0% Ag from all ore blends were
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assumed in order to size the elution circuit and goldroom. A gravity recovery circuit has been included, although initial test results suggest that ultimately this may not be required. The design criteria used are summarised in Table 18.44.
Table 18.44 Summary of Major Design Criteria Description Nominal annual dry ore throughput Kamoeb Ore Grade Gold Silver Heap Leach Residue Grade Gold Silver Plant Feed Grade Gold Silver Overall Recovery on New Feed Gold Silver Metal Production Gold Silver Crushing (Kamoeb) Throughput Availability Minimum Throughput Heap Leach Reclaim Throughput Grinding Circuit type Availability SAG Feed Rate (fresh) Ball Mill Feed Rate Note: The overall recovery is based on a leach recovery of 90%, in addition to gold recovered through gravity concentration. Design Design Design SABC 91.3 125 375.0 % t/h t/h Nominal 2 000 000 t/a Nominal Design Design 1 000 000 70.0 163 t/a % t/h Nominal Nominal 233 803 128 397 oz/a oz/a Design Design 91.0 62.4 % % Nominal Nominal 2.67 2.13 g/t g/t Nominal Nominal 1.50 1.20 g/t g/t Nominal Nominal 5.00 4.00 g/t g/t Value 3 000 000 Unit t/a
A simplified flow sheet is provided in Figure 16.3, and a brief description of the plant is as follows. 18.8.1.1 Heap Leach Tailings Reclaim
The existing heap leach residue will be reclaimed by bulldozer or front end loader into a mobile feeder system. This system in turn transfers the reclaimed material to an overland conveyor, which has been assumed to be 2500 m in length.
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The overland conveyor feeds a storage bin located adjacent to the milling area. The bin then discharges the heap leach tailings feed at a measured rate via a variable speed controller into the feed of the overflow ball mill. Heap leach residue will be reclaimed at a rate of 2.0 Mt/a. 18.8.1.2 Crushing
A new crushing circuit is proposed, consisting of a new coarse ore bin, feeder, jaw crusher, conveyor and crushed ore bin. The current circuit will be made redundant and the scoping study has not allowed for any of this equipment to be re-used. This new circuit is capable of treating both Kamoeb South ore and acidic SBR ore types. The crushing circuit has been sized to process 1.0 Mt/a of ore. 18.8.1.3 Grinding
The proposed grinding circuit consists of a single SAG mill operating in open circuit, followed by a single overflow ball mill, operating in closed circuit with a set of hydrocyclones. The SAG mill operates with a scats crusher, though this requirement will be dependent upon a data review during the feasibility study stage. The target cyclone overflow sizing is P80 75 m. The SAG mill processes only fresh ore at a rate of 1.0 Mt/a: the proposed mill is sized at 1.5 MW. The overflow ball mill processes both the discharging slurry from the SAG mill plus reclaimed heap leach tailings at a rate of 2.0 Mt/a. The ball mill will be 5.0 MW in size. Comminution requirements are based on previous testwork. circuit will be required during the feasibility study stage. 18.8.1.4 Gravity Further optimisation of the proposed
A bleed stream of cyclone underflow is gravity fed over a DSM screen to scalp material at approximately 5 mm. The screen oversize reports to the mill discharge hopper, while the screen undersize reports to a single centrifugal concentrator. Concentrator tails report to the mill discharge hopper, while the concentrate reports to the intensive cyanidation unit for further processing. The centrifugal concentrator will produce, on average, one tonne of concentrate per day. The intensive cyanidation unit will treat this concentrate batchwise with a leaching time of 22 hours. 18.8.1.5 Leaching and Adsorption
Cyclone overflow from the grinding circuit is gravity fed through a trash screen into the first leach tank. The leach circuit consists of two leach tanks with a combined residence time of approximately six hours. Oxygen or air injection into the leach tanks may be required, depending on the results of the testwork program. Leach feed density has been assumed to be 44.3% w/w solids.
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The adsorption circuit consists of six tanks with a total residence time of 18 hours. Loaded carbon from the first tank is pumped to the loaded carbon screen for rinsing, prior to entering the elution column. Carbon is pumped counter-current to the slurry flow by recessed impellor pumps. Each adsorption tank has a single cylindrical intertank screen with an 800 m aperture to retain carbon. Average tank sizing is 1881 m. 18.8.1.6 Elution/Goldroom
Loaded carbon from the first adsorption tank is pumped via the loaded carbon screen to the elution column. The column is designed for a combined acid wash and elution duty. Carbon is acid washed with 3% hydrochloric acid, prior to rinsing and elution using the split-AARL method. Barren carbon is transferred to the regeneration kiln mounted on top of the adsorption tanks, prior to returning to the adsorption circuit. Pregnant liquor from the elution circuit is electrowon onto stainless steel cathodes in two electrowinning cells. The cathodes are removed and manually stripped with high pressure water as required (nominally once per week). Sludge from the electrowinning cells is dried prior to smelting to produce dor. The elution batch sizes have been determined such that one elution cycle per day is required. The batch size is 11.0 t at assumed carbon loadings of 2000 g/t Au and 1250 g/t Ag. The elution time has been estimated at 9.6 hours. 18.8.1.7 Cyanide Detoxification
A cyanide detoxification (detox) circuit has been included within the revised circuit to reduce the tailings cyanide solution content to low levels. This is based upon the SO2/Air process, utilising sodium metabisulphite (SMBS) solution, copper sulphate and hydrated lime as reagents. Total residence time is 90 minutes. As this process has yet to be tested with the Hassa ore, the values used have been assumed based upon Sedgman experience, and testing is required to verify the circuit requirements during the feasibility study stage. Tailings from the adsorption circuit gravitate over the carbon safety screen, to capture any misreporting carbon, with the screen undersize gravitating into the first detox tank. Air is injected into the tank along with lime slurry, SMBS and copper sulphate. Slurry overflows the first tank into the second detox tank, where further lime slurry is added to maintain pH along with further air injection. The second detox tank overflows into the CIL tails sump. Individual tank live volume is 556 m. 18.8.1.8 Tailings
Tailings slurry from the cyanide detox circuit is pumped to a high rate thickener for water capture. Thickener overflow is gravity fed to the process water dam. Target thickener underflow density has been assumed to be 60% solids and is pumped to the TSF located adjacent to the processing plant.
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Thickener specific values have been assumed in this study at 0.80 t/m.h and need to be verified by laboratory testing during any subsequent feasibility study. The current TSF design has assumed a square paddock style facility, which is unlined. Tailings are deposited into the facility by a perimeter spigoting system with beaching of the solids occurring adjacent to the dam wall and a decant pond forming in the centre. A rise rate of 2.0 m/a has been assumed in the current design, however this needs to be confirmed by testing. Decant water from the TSF is recovered by a pump located in a central decant tower and returned to the process water dam for reuse in the process plant. The tailings thickener diameter is 25.0 m. The tailings dam dimensions have been assumed to be 1035 x 1035 m. No specific site has been nominated (see Section 18.9.5.1). 18.8.1.9 Reagents
Cyanide, caustic soda, SMBS, hydrated lime and copper sulphate are mixed manually as required in dedicated facilities. Bulk storage facilities for quicklime and hydrochloric acid are installed, along with an automated flocculant mixing facility for the tailings thickener. Caustic soda, SMBS, hydrochloric acid and copper sulphate are added to the circuit via dedicated dosing pumps. Cyanide and hydrated lime slurry are circulated through a ring main, with injection into the process being achieved by automated timed dosage. Quicklime is added as a dry powder to both the SAG and ball mill feed belts. Equipment sizing has been matched to the processing options and assumptions made. 18.8.2 VMS Concentrator Process Plant Description
Equipment availability assumptions for both circuits are 91.3% for all plant areas, with the exception of the filtration and concentrate handling area which operates at an availability of 80%. 18.8.2.1 Ore Delivery and ROM Pad
Ore is delivered by mine haul truck to a ROM ore pad. The ROM pad storage is sized to ensure anticipated mine stoppages do not restrict plant feed. 18.8.2.2 Crushing
The crushing plant is sized to operate 24 hours/day, 7 days/week at an instantaneous throughput of 625 t/h. Table 18.45 shows the equipment sizing for the crushing area.
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Table 18.45 Crushing Equipment Stage ROM bin Vibrating grizzly feeder Jaw crusher 200 t 1.6 m W x 7.3 m L Metso C140, 200 kW
Ore is loaded into the ROM bin by FEL. The ROM bin is sized to hold approximately 20 minutes of feed at the average throughput rate. Ore is withdrawn from the ROM bin by vibrating grizzly feeder. Oversize discharges into the primary jaw crusher operating at 100 mm closed side setting (CSS). The undersize from the vibrating grizzly and the primary crusher discharges onto the same conveyor belt. The primary crusher conveyor discharges to the mill feed conveyor. A weightometer and tramp magnet are mounted over the head pulley. 18.8.2.3 Grinding and Classification
The grinding circuit consists of an open circuit SAG mill, followed by a ball mill in closed circuit with two clusters of 400 mm hydrocyclones. The SAG mill is 6.1 m diameter, with an effective grinding length of 8.8 m and is powered by a single 5.2 MW motor. The mill is designed for overflow discharge via a trammel, with the undersize reporting to the mill discharge hopper. The SAG mill trommel oversize falls into a bunker for removal by loader or bobcat. The SAG mill motor is selected with a hyper-synchronous SER drive. Grinding media for the SAG mill is added as required onto the SAG mill feed conveyor. Ball loading is achieved via a hopper and feeder system located above the SAG mill. For the ball mill, the grinding media is added via a kibble. Duty and standby cyclone feed pumps draw from the ball mill discharge hopper and pump to two clusters of 400 mm diameter hydrocyclones (13 operating and two standby at each cluster). The target P80 of the cyclone overflow is 70 m. Cyclone overflow is moved by gravity to a static trash screen prior to reporting to the rougher flotation circuit. The cyclone underflow stream is returned to the ball mill. The ball mill is 7.3 m diameter inside shell, with an EGL of 10.2 m. The mill is powered by twin 4.5 MW motors, for a total power of 9.0 MW. The ball mill discharge flows through a trommel. Undersize from the trommel cascades into the common mill discharge hopper. A four tonne crane is provided to assist in cyclone cluster maintenance activities. Other maintenance tasks in the mill area require the use of a mobile crane. A relining machine and mill platform access ramp are provided to allow for change-outs of liners and lifters. The SAG and ball mills each have a jacking cradle system and inching drive for maintenance purposes.
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18.8.2.4
Rougher Flotation and Regrind
Rougher flotation is nominally carried out at the cyclone overflow pulp density of 35% solids and an optimum grind size P80 of 69 m. The rougher circuit is in open circuit, with rougher tailings reporting to the tailings thickener. After flowing through the trash screen, the cyclone overflow from the grinding circuit gravitates to the rougher flotation cells. The rougher stage of flotation consists of two trains of 6 x 100 m3 forced air tank cells. Cells are installed as three pairs of twinned cells, ensuring sufficient stages to reduce pulp short circuiting, while minimising the static head requirement across the rougher circuit to ensure gravity flow to the rougher tails hopper. The installed residence time for the rougher flotation cells is 40 minutes, based on the scaled-up results from the laboratory tests. Flotation is undertaken at elevated pH of 10.5 to aid in the depression of pyrite. Aerofloat 238 is added as collector and methyl iso-butyl carbinol (MIBC) as frother. Rougher concentrate gravitates through launders to a concentrate hopper, and is pumped to the regrind circuit. Flotation tailings gravitate from the final cell to the rougher tailings hopper and is pumped to the tails thickener feed tank. The regrind circuit consists of two ISAmill M1000 units with 500 kW motors operating in parallel in open circuit. The regrind circuit is designed to produce a regrind target P80 of 30 m. The feed to the regrind mill is deslimed in advance of the mill to remove fines with a 150 mm hydrocyclone cluster. The cluster contains 13 operating and two spare cyclones. The desliming cyclone underflow reports to the mill feed hopper, and the overflow gravitates to the regrind mill discharge hopper. The regrind media feeder transports grinding media from the media hopper to the mill feed hopper. The media combines with the mineral slurry and is transported via feed pump into the grinding chamber of the mill. Media is slowly consumed during the milling process and fresh media is added to retain the required charge. The media is added in a controlled manner to maintain constant power draw for each mill at the set-point specific for that mill. In this way, the size distribution of the product from the regrind circuit is also controlled. The regrind rougher concentrate from the mill gravitates to the regrind mill discharge hopper, and is pumped to the cleaner circuit. 18.8.2.5 Cleaner Flotation
Table 18.46 shows the equipment sizing for the cleaner flotation area.
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Table 18.46 Cleaner Flotation Equipment Stage First cleaner (cleaner 1) Cleaner scavenger Second cleaner (cleaner 2) Option B 6 cells of 20 m3 3 cells of 20 m 4 cells of 10 m
3 3
The discharge slurry from the regrind circuit is treated in three stages of closed-circuit cleaning. Regrind rougher concentrate is combined with the second cleaner tailings and cleaner scavenger concentrate in the first cleaner cell feed box to form first cleaner feed. First cleaner flotation is carried out in six tank cells with a nominal residence time of 20 minutes total. The first cleaner concentrate is pumped to the second cleaner feed where final concentrate is produced. The first cleaner tailings gravitate to the cleaner scavenger bank, from which the nonfloating component is transferred to final tails. The second cleaner stage has a nominal residence time of 15 minutes and the cleaner scavenger stage 15 minutes. The second cleaner consists of four tank flotation cells, while the cleaner scavenger bank consists of three tank flotation cells. Final cleaner concentrate is stored in an agitated tank in the cleaner flotation area to allow residence time for concentrate de-aeration, prior to pumping to the concentrate thickener. 18.8.2.6 Concentrate Thickening, Filtration and Handling
Table 18.47 shows the equipment sizing for the concentrate handling area.
Table 18.47 Concentrate Handling Equipment Major Equipment Concentrate trash screen Concentrate thickener Concentrate filters 1.2 m W x 3.6 m L 22 m diameter high rate 2 x pressure filters of 50 m
2
Final cleaner concentrate is pumped from the flotation area to the concentrate area. Pump discharge passes over the concentrate trash screen to protect the thickener and downstream filter. Underflow from the trash screen flows into the concentrate thickener. Thickener overflow is pumped to the process water tank. Thickener underflow is removed by pumps at 65% w/w solids and pumped to the concentrate storage tanks. Thickener underflow can also be recycled back to the thickener to ensure that underflow density can be maintained during times of low concentrate production. Two concentrate storage tanks are provided with a live capacity of 1000 m3 each, allowing a total storage capacity of 48 h. Filter feed pumps feed two pressure filters. Dry cake (10% moisture) is dumped from the bottom of each filter to a set conveyor belt that discharges into a storage bunker. The filtrate gravitates to an air/water separator in which the filtrate is de-aerated prior to being pumped back to the concentrate thickener. The filter building has a concrete floor and push walls to suit operation of FELs.
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A FEL is used to transfer concentrate from the intermediate stockpile to the concentrate packaging system which packs the concentrate in two tonne bulk bags. Bulk bag delivery is included due to bulk handling issues at Port Sudan. Bulk bags of concentrate are loaded by forklift onto trucks for transport to Port Sudan. The average concentrate productions are presented in Table 18.48 for each ore type.
Table 18.48 Concentrate Production Ore Type Hassai South Supergene Hassai South Primary Hadal Awatib t/d at 10% Moisture 1065.0 745.6 513.0
The site and port storage capacity is included at 15 and 30 days respectively, for the average concentrate production rates tabulated above. 18.8.2.7 Reagents
Nominal on-site reagent storage is included with a stock capacity of 30 days to ensure stocks are sufficient to allow continued operation during periods of road outages or supply delays. The use of a separate reagent shed and mixing/storage area minimises unnecessary personnel interactions with this potentially hazardous area. Hydrated Lime Hydrated lime (Ca(OH2), is delivered to site in bulka bags, and is loaded into the feed hopper using a hoist. Solids are transferred by screw feeder for continuous mixing in a mixing tank. Duty/standby pumps circulate milk of lime through the lime ring main. Lime dosing at each individual distribution point is controlled by on/off pinch valve using time-based control loops. Milk of lime is distributed to the following locations: Mill discharge hopper Regrind surge tank Cleaner scavenger cell 1 Cleaner 1 concentrate hopper.
Flocculant Powdered flocculant, Magnafloc 1011 or equivalent, is delivered to site in bulka bags, and is loaded into the feed hopper using a hoist, for batch mixing in the vendor-supplied flocculant mixing package. The resulting 0.25% w/w solution is transferred to a storage tank with 24 hour residence time for aging. Flocculant is metered to each of the concentrate and tailings thickeners using duty/standby variable speed positive displacement pumps. Metering is achieved by calibrating pump speed to flocculant flow rate. Flocculant is diluted to approximately 0.025% using process water just prior to the addition point.
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Collector Collector (Aerofloat 238 or equivalent), is delivered in liquid form in 210 L drums. A drum pump is used to transfer collector from the drum to the storage tank. Collector is pumped to the following dosage points using dedicated diaphragm metering pumps for each point: Mill discharge hopper Rougher cells 1 and 7 Rougher cells 5 and 11 Regrind surge tank Cleaner 1 tailings hopper.
Frother MIBC is delivered in liquid form in 210 L drums. A drum pump is used to transfer this frother from the drum to the storage tank, from where it is pumped to the dosage points using dedicated diaphragm metering pumps for each point. Delivery of frother is to the following locations: Rougher cells 1 and 7 Cleaner 1 cell 1 Cleaner scavenger cell 1 Cleaner 2 cell 1. Air Systems
18.8.2.8
Plant and Instrument Air Plant and instrument air are provided from the same compressor and dryer system. Four sequencecontrolled compressors supply a plant air receiver at 1000 kPa. The plant air is distributed directly from the receiver. Instrument air is treated through dryers and filters to remove moisture and particulates. A pressure reducing valve reduces plant and instrument air pressure to nominally 700 kPa. Instrument air is maintained during pressure fluctuations by using a pressure sustaining valve on the plant air distribution line. Blower Air Four blowers (including one standby) provide high volume, low pressure air for flotation. Automatic flow controllers at each cell are used to control air addition. 18.8.2.9 Water
Raw Water System Raw water consumption projected for the combined CIL and concentrator operation is shown in Table 18.49.
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Table 18.49 Demand 3.0 Mt/a CIL plant 5.0 Mt/a VMS Flotation Plant 800 Man Camp Dust Control Allowance Community Allowance Sub-total Contingency (9%) Total Design Raw Water Consumption (no return from TSF) Value (m/d) 5 544 11 261 160 1 500 1 000 19 465 1 675 21 140
Existing sources are totally inadequate to meet this demand, and raw water will be supplied from the Nile River by overland pipeline to a lined raw water pond. Raw water is used as make-up water for the process water distribution system, and is also distributed to the following points: Gland water system Concentrate trash screen Lime mixing Flocculant mixing.
Process water is stored in the process water dam, where recovered water from the process and fresh raw water are collected and distributed to the plant. The process water pond has a capacity of 24 hours at nominal capacity. The process water pumps operate in a duty/standby arrangement. Process water distribution is by pressurised header, and is distributed to the following locations: Crushing dust suppression system SAG/ball mill and mill discharge hopper Flotation concentrate water sprays Dilution of flocculant at the concentrate and tailings thickeners Fire water system.
Fire Water System From the fire water dam, a system of pumps supply water to the fire water header and to the hydrants distributed through the plant. The fire water storage satisfies a 4 hour fire-only storage requirement. Gland Water Filtered raw water is used for gland water. Antiscalant addition may be required. There are two gland water services, the gland water being split into low pressure and high pressure systems. Both systems operate from the same feed tank using dedicated duty/standby pumps for each system.
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High pressure gland water is delivered to: Mill cyclone feed pumps Filter feed pumps Tailings discharge pumps Process water pumps.
Low pressure gland water is delivered to all other pumps requiring gland water, and also supplies the filter requirements in the concentrate area (cloth wash water tank and filter pressing water tank). Potable Water Potable water is supplied from the CIL plant. Potable water for eye wash and safety shower distribution is via duty/standby pumps. The shower water system is a pressurised header. Due to high ambient temperatures, the shower water system includes a cooling tower to maintain acceptable water temperatures. 18.8.2.10 Concentrator Tailings Management
The concentrator produces approximately 4.7 Mt/a of tailings material requiring disposal on site. A review of disposal options was completed, taking account of the fact that water conservation and recovery is important, both from an environmental and financial perspective. From this it was concluded that a slurry disposal method would be adopted for the scoping study, with discharge of the total tailings stream at the plant thickener underflow density (55% w/w), and delivery via a centrifugal pumping system to the TSF for sub-aerial deposition. Details regarding the option study, TSF design and operation are included in Section 18.9. 18.9 18.9.1 PROJECT INFRASTRUCTURE AND SERVICES Water Supply
Water supplies for the current Hassa operation are reliant upon bores and surface storage dams, and are limited. The supply of raw water for the expanded project is expected to be sourced via a new pipeline from the Nile River, approximately 165 km away. This pipeline is sized to meet the requirements of both the VMS concentrator and the CIL plant. It is estimated that six pump-stations will be required to transport water to site. Although the CIL plant is expected to be developed and commissioned prior to the VMS plant, the full capacity requirement for all site operations is to be constructed during the CIL plant construction phase. The pipeline is constructed primarily from mPVC (extruded on site) with steel sections used in some areas as dictated by the ground conditions. Table 18.50 summarises the preliminary pipeline design.
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Table 18.50 Water Pipeline Summary Description Pumping Stages Pipe Size, OD System Op Pressure (max) Pipe Rating Total Static Head Hydraulic Power / Stage Installed Power / Stage Nominal Flowrate Total New Pipe Unit mm m bar m kW kW m/hr km t Value 6 500 140 PN 9 - 20 150 322 600 961 165 6253
The pipeline has been sized to provide 21 140 m/d of water (nominally 961 m/h operating 22 h/d). This flowrate will be sufficient to supply the projected demands of a 3.0 Mt/a CIL plant plus the proposed future 5.0 Mt/a VMS flotation plant (Table 18.49). Line sizing has reached the limits of commercially available mPVC pipe, while it has been estimated that six pumping stages will be required. At the plant site, water will be stored a new, lined raw water dam, which overflows into a new, lined process water dam. The capital cost estimate has been developed by Sedgman, while AMEC has included capital costs for additional water reticulation infrastructure required for the VMS concentrator. 18.9.2 Power Supply
The current operating site maintains 17 generators to supply the operating power requirements. It is anticipated that these units will be converted to meet emergency power requirements for the proposed Hassai CIL plant. This capability could function as emergency power supply for both the CIL and VMS concentrator in the future. Power for the CIL and VMS concentrator projects is to be sourced via an overland line from the existing national power grid supply. The project is approximately 77 km from the nearest potential grid connection. As the CIL plant is anticipated to precede the VMS, the required overland transmission lines and associated power infrastructure for both plants will be installed as part of CIL project. Power required on site for the CIL and Concentrator components is shown in Table 18.51.
Table 18.51 Plant Power Requirements (MW) CIL Total installed power (excluding standby equipment) Utilised power Emergency power 10.3 Concentrator 24.0 19.5 2 x 2 MW generator sets
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Preliminary conversations with NEC, the national electrical supply company, have confirmed that there is no shortage of power available from the Atbara - Port Sudan line. Line construction would be undertaken by NEC, financed by AMC, and construction is estimated to take a minimum of 1 year. The power cost is estimated to be $0.074/kWh, based on pricing supplied by AMC. 18.9.3 Accommodation
The existing Hassai camp is located approximately 3 km from the current heap leach operation. This camp currently accommodates 600 personnel (expatriates and locals) and includes accommodation, mess hall, bakery, local market and recreational facilities. On-site communication allows mobile phone and internet access. A new accommodation village will be developed for the CIL and VMS plants, to accommodate workforce requirements. A 200 person camp has been allowed for in the capital cost estimate by Sedgman for the CIL operation, while accommodation for a further 500 persons is included by AMEC in the VMS concentrator estimate. 18.9.4 Airstrip
A fully maintained airstrip is located at the site and is used for the heap leach operation. This airstrip is utilised currently for air freight to site and transport of personnel to and from Khartoum. AMC maintains a Twin Otter aircraft which is based on site. 18.9.5 18.9.5.1 VMS Concentrator Tailings Storage Facility Site Selection
During the site visit by AMEC Minproc and AMEC E&E personnel to site in early March 2010, a proposed site for the location of the TSF was identified. The site is shown in Figure 18.22, together with the proposed location of the VMS plant and the northern part of the existing leach pads. The site would appear to be suitable based on the availability of land, the absence of communities and the absence of obvious sensitive environments in the area. The topography of the area is very flat. A preliminary site assessment identified abundant potential embankment construction materials, including material from old waste rock dumps. However, geotechnical, hydrological, social and environmental issues will require further investigation as part of any feasibility studies.
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Figure 18.22 Tailings Storage Facility Site Location Option
The results of the preliminary review indicate that the key aspects to be considered for the selection of the TSF site include the following: Key environmental aspects: protection of the Wadi Amur from potential contamination Key technical requirements: the approximate TSF storage volume is 38.5 Mm3, which provides storage for 50 Mt, or 10 years of production, assuming an average density of 1.3 t/m3. Preliminary Environmental Assessment
18.9.5.2
To consider the relative environmental effects of the site and to establish potential mitigation requirements, sites were assessed using information pertaining to socio-economic and political factors as summarised in Table 18.52.
Table 18.52 Environmental Assessment Scoring Criteria Score 1 2 3 Level of Objection None or Minor objection expected Objection expected Significant objection expected Resources and Risk Minor resources required to counter objection Major resources required to counter objection and provide mitigation measures Risk of onerous mitigation measures, requires mitigation to be incorporated into technical design
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The approach used required consideration of the following factors: The quality, detail and extent of available data AMEC's experience of similar tailings disposal impacts and effects A judgement on the relative significance of the impacts in the context of the social and environmental setting.
The assessment establishes a qualitative score for each site in respect of the environmental factors considered. It is recognised that individual factors have a different level of significance and the scores reflect the likelihood of objections to the development based on each. The resources necessary to counter each objection and the extent of the appropriate mitigation measures are reflected in the scores. Therefore, a score of 1 is given to perceived minor objections to reflect minimal environmental effect, whereas a score of 2 or 3 is used to highlight differences between a minimal effect and situations of unfavourable environmental responses. The criteria to measure the selected site (and any other potential site identified in future) include the following: Village Impact The site identified scored 1, the lowest possible score, as there are no villages in the vicinity of the mine site of the proposed TSF site. Catchment The surface water catchment for the site is believed to be minimal and, therefore, according to available mapping there should be no significant implications for this site. It is recognised, however, that the proposed site could be in the upstream side of the Wadi Amur and, therefore, mitigation measures to minimise the risk of contamination will have to be assessed and implemented. Ownership/Land Use It was observed during the site visit that the area of the proposed TSF does not have, and due to its characteristics is unlikely to ever have, a land use. No local communities were observed in the vicinity of the project site, and, on this basis, the site is considered appropriate. Visual Impact AMEC believes that the site is appropriate for this type of development. Potential Impact on Water Supply Two aspects to the potential impact on water supplies need to be considered: Groundwater vulnerability Cost of water piping from the Nile and the impact of that installation/operation.
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Based on the above observations and subject to confirmation of the assumptions, it is considered that the site north of the proposed VMS plant site is appropriate for the location of the TSF. 18.9.5.3 Tailings Delivery Options
Water conservation and recycling has been identified as a key parameter in the operation of the tailings facility, and, therefore, the three options with contrasting philosophies for water management were analysed in some detail as follows: Filter cake disposal: the tailings stream is passed through additional thickeners and/or a pressure belt filter system to dewater the total product to the optimum moisture content. Filter cake is delivered to the deposition area for discharge by either articulated truck or a dedicated overland conveyor system. The site filter cake disposal scheme would include sequential raising of the TSF while controlling surface run-off and silt discharge. Pre-deposition works will include clearance of vegetation, topsoil stripping and stockpiling (if any), the formation of seepage collection drains, silt collection and drainage collection ponds. Stormwater will be diverted around the TSF by the open drain formed adjacent to the periphery, and may report to a small water retention dam. Upon reaching the final design height, the surface of the facility will be re-profiled to a peripheral drainage system and a series of silt traps installed. The limited volume of supernatant released from the tailings will report with normal surface run-off to the supernatant pond where it will be returned to the process plant. This pond will be significantly smaller than envisaged for a slurry disposal scheme. Paste/thickened tailings disposal: the tailings stream is discharged via additional thickeners to reduce the pulp density to at least 70% solids by weight. Tailings are then pumped to the depository by positive displacement pumps where discharge is undertaken by either co-disposal with stripped overburden or rock waste from the mining operations, or discharged from a series of open end discharge points to form a natural cone-shaped depository. The depository will be surrounded by a low perimeter wall to retain any supernatant water released from the conical pile and to control storm water run-off. Resultant supernatant water will reclaimed for return to the process plant. Due to the availability of potential sites in close proximity to the proposed VMS plant site, and the requirement to recover water, a paste transport system is considered potentially beneficial for the project. Slurry disposal: this method considers the discharge of the total tailings stream at the plant thickener underflow density (55% w/w), and delivery via a centrifugal pumping system to the TSF for sub-aerial deposition. Due to the high water content, the variability of the particle size distribution of the slurry, specific gravity and the transporting fluid viscosity, the solids undergo hydraulic separation upon sub-aerial discharge. The coarse fraction is deposited adjacent to the discharge point while the finer fraction is held in suspension and carried forward to the supernatant pond. To enhance the separation of interstitial water, tailings are discharged via spigots, cyclones or open pipes, which are continually relocated along the TSF periphery to form a layered free-draining beach. Catchment run-off and supernatant water released by the tailings will report to the supernatant pond and the floating decant equipped with submersible pumps. Generally rainfall and run-off water will be retained within the TSF without release to the environment.
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The site identified near the proposed VMS plant site would be suitable for the construction of a tailings facility using this transportation method. However, the water losses (entrained water, seepage and evaporation) will be high, and a trade-off study is needed to confirm the costs of the overall system. The alternatives were assessed in terms of: Environmental impacts, primarily: Uncontrolled escape of effluent and solids by seepage and run-off Wind erosion of the tailings solids from the surface
Capital and operating costs.
Table 18.53 shows the results of the disposal system ranking study. In general, conventional slurry disposal is favoured in terms of costs, whereas the filtered and paste/thickened systems have potential environmental benefits. For the purposes of the scoping study, it has been assumed that the tailings produced will be in slurry form with approximately 55% density (w/w). The tailings discharge system will include equipment and costs for the tailings thickener discharge to the TSF.
Table 18.53 Disposal System Ranking Filter Cake Supernatant pond Topography Location with respect to plant site Seepage Storm Water Management Surface erosion/stability Wind erosion Ease of future expansion Geotechnical Operational supervision Capital expenditure Operational expenditure Total 3 3 1 1 2 2 2 17 2 1 2 1 2 2 2 17 1 2 3 1 1 1 1 17 1 1 1 2 1 3 1 Paste /Thickened 2 Slurry 3
1 - is most advantageous, 3 - is least advantageous
18.9.5.4
TSF Design
The upstream method with day walling for dam raises is a method widely used in Africa and will be applied to the project to take advantage of its relatively low capital and ongoing costs. Figure 18.23 shows a schematic section of the construction.
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Figure 18.23 Schematic of the Upstream Construction Method
Tailings Dam Area and Rate of Rise The rate of rise of a tailings dam constructed using the upstream method is paramount in the definition of the stability of the dam. As the upstream section of the embankment is founded on tailings previously deposited, the consolidation and drainage of the tailings should be sufficient to allow the construction of the following raises without compromising dam stability. General guidelines indicate that the maximum rate of rise for a tailings dam being constructed using the upstream method should not exceed 2-3 m at any time during the life of the facility. Given the particular circumstances of the site, it is considered appropriate to use a maximum rate of rise of 3 m per year, as the lack of rainfall and the high temperatures prevalent on site will promote desiccation and consolidation of the tailings mass. The layout of the tailings facility will be mandated by the required tailings disposal capacity for the ultimate life of mine. The preliminary process schedule calls for disposal of approximately 30 Mt/a, equivalent to a total deposition capacity requirement of approximately 23 Mm3.
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Based on the above, the footprint of the TSF, up to the downstream toe of the starter embankment, will measure approximately 160 ha, with a perimeter of approximately 5000 m. The resultant TSF will reach a total height of some 17 m after 10 years of deposition. Tailings Storage Facility Components The design will need to cover the following elements as a minimum: Pre-deposition earthworks, including site preparation and the construction of a starter embankment some 5 m high for the deposition of 2 years production Storm-water diversion channels Seepage collector drains and shallow seepage cut-off drains Return water dam complex, made up of a lined return water dam and an unlined storm water dam Floating barge and pump on the pool delivering supernatant water to the return water dams Tailings delivery and return water pump station platform at the return water dam complex Tailings delivery ring-feed Topsoil stockpile (should this be required) Access roads.
No HDPE liner has been considered for the tailings facility. This assumption will need to be confirmed as part of any prefeasibility study. 18.9.5.5 General A best practice closure plan will be developed during detailed design, based on guidelines similar to those prepared by the Ontario Ministry of Northern Development and Mines (1995) or the Minerals Industry Research Organisation of UK (MIRO, 1999). The plan will incorporate a long-term objective for closure and rehabilitation, which will permit the mine operator to leave the site in a condition that requires limited ongoing maintenance. The tailings surface will be drained, graded, sheeted with stripped overburden, and planted with natural vegetation as appropriate. An open-channel spillway will be excavated to the south of the facility to allow for the free discharge of uncontaminated surface waters. All tailings delivery and water reclaim pipes will be salvaged and their associated drains and access roads rehabilitated. That portion of the downstream slope of the TSF embankment not yet re-vegetated at closure will be treated accordingly. The embankment toe drains, sumps and monitoring boreholes will be kept open and monitored on a regular basis until such a time that any seepage is proved not to be detrimental to the environment. Prior to closure, the TSF will comprise an upstream embankment confining some 30 Mt of process waste, sufficiently drained so that a stable upper surface will have been established. Closure activities will commence during the final year of operation, to ensure that all the objectives can be achieved efficiently and cost effectively.
Closure
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In accordance with international best practice for TSF sites, data will be collated throughout the deposition period to ensure that an appropriate closure strategy is adopted. This information will include data on tailings geotechnical and geochemical properties, as well as on vegetation types, hydrology, meteorology, etc., which will in turn be incorporated into the closure planning documents. To achieve these objectives, the closure plan will define a number of key periods of activity during the closure of the TSF, which are envisaged as: Pre-abandonment period: during the last year of operating the process plant, preparatory works will include the modification of the tailings disposal system to ensure achievement of the final surface topography toward a future storm water run-off channel while also maintaining the final consolidation of the upper surface of the tailings. This will entail the following: Control of deposition to create the tailings pond in its final location Stockpiling barren (stripped waste) material to enable the construction of the tailings dry cover Possible inclusion of nutrients and seed stock into the final tailings deposition layers as determined from vegetation trials
Post-abandonment: during the post-abandonment period, input will be required to achieve the final surface topography commensurate with the agreed after-use and to ensure its long-term integrity. Other Infrastructure
18.9.6
The current heap leach operation is supported by offices, workshops, storage facilities, a laboratory, fuel, lubricant and explosives storage. In general these are considered to be adequate to support the CIL operation, but additional infrastucture will be required for the VMS concentrator and underground mining operations. No detailed engineering has been undertaken, but allowances have been made for these additional items in the capital cost estimate. 18.10 MARKETS
AMC has not completed a review of the market for copper concentrates, nor initiated any discussions with potential customers. It is believed that: Smelting capacity has continued to grow, exceeding the increase in global concentrate output. No significant growth in mine production is foreseen in the medium term. The main growth in smelting capacity has been in China; concentrate imports rose 18% during 2009. Utilisation rates at smelters are at historical lows. The position of smelters has eased due to higher sulphuric acid prices, better free metal credits and copper cathodes premiums. However, they still face an adverse market. Recent annual benchmark treatment and refining charges (TC/RCs) reflect the tight market, as follows: 2009 calendar year: TC $75/t and RC $0.75/lb 2009 mid-year: TC $50/t and RC $0.50/lb 2010 calendar: TC $46.5/t and RC $0.465/lb.
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Price participation has disappeared since 2009. China drives the spot market, supported by internal measures allowing smelters to compete aggressively in the spot market. Lack of spot availability has created aggressive competition not only among merchants but also among smelters.
Based on the above, it is believed that the positive outlook for copper concentrates will persist, with low TC/RCs expected in the coming years as the supply deficit persists and low smelting capacity rate utilisation remains. Consequently, there should be a demand for AMCs copper concentrates, assuming high quality concentrates can be achieved. The underlying assumption for financial analysis is that TC/RCs will average $50/t concentrate and $0.50/lb copper over the life of the project, which is in line with industry forecasts. It is important to note that actual charges will depend on the quality of concentrate being supplied including factors such as concentrate grade and impurity levels. Although zinc can be recovered during the flotation process, no testwork has been completed to optimise its recovery and produce separate concentrates for sale. Consequently, zinc sales and zinc treatment costs have been excluded from the scoping study. 18.11 ENVIRONMENTAL AND SOCIAL CONSIDERATIONS
A preliminary environmental review was undertaken by AMEC Earth and Environmental, including a site visit to gather relevant information. The review was based on the current legislative context in Sudan and focussed on identifying fatal flaws and opportunities. The review included the following specific tasks: Review all available and appropriate information Assess current compliance with local, regional, national and international regulations and standards Examine potential remediation and reclamation issues Identify potential issues that might arise with project expansion, including the need for an SEIA and other environmental requirements Identify potential significant environmental impacts that might arise from the expansion project Time requirements Provide input into ongoing data collection activities to facilitate permitting and compliance processes.
A number of areas were identified which will require attention and recommendations for remedial actions and mitigations are provided along with information setting out roles and responsibilities and time requirements in order to implement an appropriate system. Potential fatal flaws included: No environmental management system (EMS), which consequently leads to lack in planning, mitigation and compliance Existing SHE auditing and compliance is not effective in supporting the project to address environmental issues
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Establishing where the original baseline reports and data are, and ensuring documentation is controlled No Environmental Emergency Plan is evident.
The abovementioned actions need to be undertaken in order to meet the International Finance Corporation guidelines, but there is no evidence for an environmental fatal flaw that would affect either the CIL or VMS projects. Opportunities include: Excellent relations with national and local representatives, provision of services and resources Water management, measurement, quality were all taken seriously and a management plan exists Waste signs of best practices were evident, but improvements are needed in overall management and planning, including for mine waste. TAXES AND ROYALTIES
18.12
AMCs current gold production is subject to a Net Smelters return (NSR) of 7% to be paid to the state of Sudan. This level of royalty was acknowledged by the Sudanese government to be above industry average and was reviewed downwards in more recently awarded exploration permits. La Manchas most recent permit in Sudan, the Nuba Mountain project, has a 5% NSR on gold and a 3.5% NSR on base metals attached to it. Furthermore, AMCs net earnings have been taxed at 15% rate by the Sudanese government since 2008. Prior to that, AMC was exempt from paying any tax on its net earnings, an incentive that had been specially granted by the state to encourage the start-up of the mining industry in the country. In the preparation of this report, La Mancha took the conservative approach of applying the current royalty to the first phase of the VMS project while reducing the tax level to 10% to reflect the importance of the investment to be realised. As La Mancha believes that the second phase of the project represents a material change in terms of product mix, they have considered it as a new project for royalties purposes. La Mancha has therefore retained the assumption of NSRs of 5% and 3.5% respectively for gold and base metals in addition to a reduced tax rate of 10%. These assumptions appear to be conservative in light of past agreement with the Sudanese government, but remain to be agreed upon. 18.13 18.13.1 CAPITAL COST ESTIMATE General
Mining capital costs for both the CIL and VMS phases of development are contained within the relevant parts of Section 18.1, and are summarised in Section 18.13. CIL Plant capital cost estimation was undertaken by Sedgman and VMS Concentrator costs estimated by AMEC.
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18.13.2
Mining
As described in Sections 18.2 to 18.4, total mine capital cost includes the purchase of a new mining fleet for Hadal Awatib, together with pre-production costs associated with the development of the Hassai South underground mine (Table 18.54). Only replacement capital costs have been included for mining at Kamoeb, for a portion of the aging mining fleet. No capital costs are included for the heap leach tailings reclaim operations which will use existing equipment.
Table 18.54 Mine Capital Cost Estimate Summary Kamoeb, Hassai South and Hadal Awatib Area Items Equipment Sub-total Equipment Hadal Awatib Open Pit Infrastructure Sub-total Infrastructure Hasai South Underground Development Material movement Sub-total Total Mine Capital Cost Note: ** includes capital from 2010 for current operations; $3.22 m of this amount is attributed to the CIL Project Underground infrastructure includes preliminary works, surface works, portal development, ventilation, and the paste plant. Cost Estimate ($M) Kamoeb Open Pit 8.8** 8.8 79.6 5.0 84.6 31.2 23.8 2.6 57.6 151.0
18.13.3 18.13.3.1
CIL Plant Methodology
The designs for the processing plant are based on a limited amount of metallurgical testwork, data from which was used to establish preliminary design criteria, process flow diagrams, a preliminary mass balance, and an equipment list. Budget prices were obtained for major equipment only. Minor equipment pricing was derived from the Sedgman database of previous projects with an escalation factor applied where appropriate. Estimates for other construction costs were based upon factors derived from Sedgman experience with similar projects. These costs included: Structural Concrete Platework Piping
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Electrical Transport.
An allowance for a 200 man accommodation village has been included, determined at a rate of $20 000 per man. 18.13.3.2 Summary Capital Cost
The estimated capital cost for the 3.0 Mt/a CIL processing plant is $184.4 M, as summarised in Table 18.55. All costs are in United States dollars as of second quarter 2010 and are judged to have an accuracy of 40%.
Table 18.55 Estimated Capital Costs, 3.0 Mt/a CIL Plant Area Plant Nile pipeline Powerline Camp Contingency @10% Subtotal Direct EPCM Insurance First Fill and three month consumables Spares Capital spares Contingency @10% Subtotal Indirect Grand Total Cost ($000s) 74 299 39 641 25 364 4 000 11 948 155 652 15 503 2 335 4 081 1 276 3 000 2 484 28 765 184 417
18.13.4 18.13.4.1
VMS Concentrator Introduction
This section summarises the capital cost estimates for the VMS concentrator and related facilities and infrastructure. All costs are estimated in United States dollars as at the first quarter 2010 (1Q10) and are judged to have an accuracy of 30%. Owners costs and contingencies were provided by AMC. Where appropriate, the exchange rates used in the estimate are: A$1.00 EUR 1.00 ZAR 1.00 = = = US$0.87 US$1.37 US$0.127
The total estimated value of the capital expenditure for the 5 Mt/a plant is $319.4 M.
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18.13.4.2
Estimate Structure and Basis
The capital cost estimates have been structured into the following major categories: Direct Costs: those expenditures that include supply of equipment and materials, freight to site and construction labour at site relevant to the particular option. Indirect Costs: indirect costs are those expenditures covering temporary construction facilities plus engineering, procurement and construction management (EPCM) services, together with the supervision of commissioning of the works. Accuracy Provisions: plant accuracy provisions have been assigned to each discipline item to cover expected growth in the estimate based on experience with other projects of this nature at a scoping level. The provision ranges from 10% for equipment and equipment installation to 25% for piping. The accuracy provisions for Mining and the TSF have been incorporated into their Direct Costs. The accuracy provisions do not consider allowances for such subjective risks such as currency exchange rate fluctuations, construction market forces, environmental considerations, community input considerations, unusual weather conditions, labour availability, difficult ground conditions, change to statutory regulations, charges and taxes, and scope changes.
Unit rates for bulk materials, ie. earthworks, concrete, steelwork, platework, etc., have been derived from recent projects and studies undertaken by AMEC for mining facilities in Africa. Typical all-up rates used in the estimate are listed below: Concrete (in place) Steelwork (supplied and erected) CS platework (supplied and erected) Site erected carbon steel tanks Shop rubber lining Site rubber lining $1040/m (average) $5480/t (average) $5500/t (average) $8500/t (average) $320/m $506/m
Equipment costs are based on budget quotes received from vendors for major items such as crushers, screens, mills, filter and thickeners. In-house database or allowances have been used for certain equipment items where recent costing is available. The following vendor pricing for major equipment is incorporated into the estimates: Crushers Grinding mills Flotation cells Regrind mills Filters Thickeners Metso Outotec Outotec Xstrata Technologies Larox Outotec
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An allowance on the net price of the equipment has been made to include for packers, wedges, grouting, guarding and signage. 18.13.4.3 Plant, Area and Regional Roads
Road and hardstand costs were based on minimal bulk earthworks (cut to fill) and construction consisting of a nominal 500 mm embankment from suitable local fill sheeted with 200 mm of base course. Typical rates applied are listed below: Strip topsoil and dispose Embankment construction, from local fill Base course deliver, grade and compact Buildings $10.7/Bm $13.1/Cm $68.3/Cm
18.13.4.4
The costs for buildings have been developed using historical data from recent projects and studies undertaken by AMEC for mining facilities in Africa. Allowances have made for fully fitting out with air conditioning, verandas, partitions, workstations, computers, electrical appliances, etc. Nominal sums have been included for workshop equipment tools and services, and laboratory equipment. 18.13.4.5 Plant Mobile Equipment
The mobile equipment fleet cost basis is derived from indicative prices received from various suppliers and in-house data. An allowance of 15% for mobilisation to the mine site has been added to the net amount. 18.13.4.6 Bulk Fuel Storage and Distribution
Allowance has been made for two carbon steel storage tanks along with associated retention bunds, bunkering and distribution pumps, fire protection, unloading pipework, etc. Distribution pipelines are allowed to the mine refuelling tanker point and the light vehicle refuelling point. 18.13.4.7 Electric Power Supply
It is proposed that power is supplied by a 77 km 132 kV overhead line connected to the Sudanese main grid which has been costed separately with the CIL plant. Allowance has been made for a HV switchyard and step-down transformer at the project site. 18.13.4.8 Communications
An allowance based on in-house data includes receival mast to mine, PABX interface, backbone transmission, voice/data cabling, administration voice and data network, fixed voice services and twoway mine voice mobile radio.
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18.13.4.9
Permanent Accommodation Expansion
Permanent workforce accommodation is based on single status. Costs for the accommodation are based on historical data from previous studies for site accommodation in Africa. No allowance has been made for vacant accommodation when personnel are on R&R. The village will be fully selfcontained with all amenities. A rate of $12 500 per person has been estimated. 18.13.4.10 Water Supply and Distribution As the water pipeline from the Nile is anticipated to be installed during the construction of the Hassai CIL project, this has been excluded from the concentrator estimate. 18.13.4.11 Material Quantities Preliminary global quantities for earthworks, concrete, steelwork, and platework have been determined from in-house data for similar installations and assessed from conceptual sketches prepared for this study. Rates as noted earlier have been applied to these quantities. 18.13.4.12 Construction Labour Labour rates for the estimate have been calculated in-house based on rates from recent projects and studies undertaken by AMEC in Africa. The rates include accommodation and travel costs, supervision, construction plant and cranes, temporary facilities, and contractors mark-ups, to give a direct labour cost per hour. Site construction hours have been calculated using Australian norms as the basis. A productivity factor of 0.4 has been applied to these norms to reflect the estimated hours considered applicable in this region of Sudan. For earthworks, a productivity factor of 0.8 has been applied. 18.13.4.13 Piping Estimate Piping costs for the process plant have been calculated by applying factors to the equipment supply cost. These factors vary depending on the work breakdown structure (WBS) area. They are based on AMECs experience of similar installations. The off-plot lines have been calculated by applying material plus installation rates to preliminary quantities. 18.13.4.14 Electrical and Instrumentation Electrical and instrumentation costs have been calculated by applying factors to the equipment supply cost. These factors vary depending on the WBS area. These factors are based on in-house data for similar installations. 18.13.4.15 Freight Ocean, inland and local freight costs have applied as a percentage of the equipment and material costs. A percentage of 4% has been applied for local freight and 10% for ocean/inland freight.
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18.13.4.16 Preliminaries Preliminaries are those items that must be included in the estimate, but are applicable across a number of areas. They consist of: Mobilisation and demobilisation of contractors Heavy lift cranes for the installation of crushers, mills, filters and thickeners (included in labour gang rate) Cost of vendors representatives to be present when commissioning equipment Assistance by contractors when carrying out the commissioning the plant Construction camp Temporary facilities for the EPCM contractor.
For this level of estimate, these items are simply factored off the appropriate areas. 18.13.4.17 Tailings Storage Facility TSF costs include the supply and installation of the tailings delivery system from the concentrator, the decant system, return pipeline from floating decant barge to the process plant, embankment instrumentation, seepage collection and return pumps, and perimeter diversion channels. The estimate is a preliminary estimation based on preliminary bill of quantities and estimated distances for piping systems as well as a typical layout for a tailings facility. Rates and quantities have not been calculated and the cost is based on escalation from similar facilities. The availability of approved fill materials from the open pit works has yet to be confirmed. As a consequence, suitable earth fill from this source has not been assumed at this stage. 18.13.4.18 Capital Spares Included is an amount equal to 5% of the ex-works equipment cost to cover capital and start-up spares; an allowance has been added to this to cover freight to site. 18.13.4.19 Indirect Costs Temporary Facilities and EPCM Indirect costs have been calculated by applying a percentage amount to the Direct Costs. A percentage of 1.0% has been applied for temporary facilities such as the establishment of construction management temporary facilities, temporary infrastructure, etc. A percentage of 6% has been applied for the construction camp supply and running costs. For the EPCM, various percentages (dependent on work area) were applied to undertake detail design, procurement, project management, construction management and commissioning if undertaken by an engineering company familiar with this task. Also included within this EPCM amount are such things as specialist sub-consultants, travel costs, R&R, hire vehicles, accommodation and messing, insurances, etc. The EPCM overall averaged approximately 11.0% for the 5.0 Mt/a plant.
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18.13.4.20 Qualifications and Clarifications GST or any like tax has not been included No import duty (if applicable) has been included for importation of equipment Minimal site preparation has been included. No allowance has been made for rock excavation, dewatering or sub-strata improvement. It has been presumed that the site is generally clear and ground conditions are suitable for the construction of the proposed works It is assumed that suitable borrow pits for building materials are in close proximity and, where there is a requirement for select fill, it can be produced with a minimum of screening and water conditioning Bulk fuel storage and dispensing to service the mining fleet is included CAR or goods in transit insurances have been included within the EPCM amount First fill and consumables are included.
18.13.4.21 Capital Cost Summary The cost breakdowns by WBS area, including for mining, are given in Table 18.56.
Table 18.56 Concentrator Capital Cost Estimate Summary by Area WBS Area No. Direct Costs Underground Infrastructure Horizontal development Vertical development Material movement Open Pit Infrastructure Equipment Mining Total 3200 3350 3400 3850 3900 3950 3955 3960 Comminution/beneficiation Flotation Concentrate handling Tails disposal Reagents Air distribution Water distribution Main pipe racks Total Process Plant 27 664 000 14 053 725 1 500 000 1 532 097 4 900 000 66 762 000 116 411 822 33 594 649 24 486 848 9 309 606 5 185 792 1 440 889 1 880 105 1 292 845 1 002 982 78 193 716 WBS Area Title 5.0 Mt/a (US$)
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Table 18.56 Concentrator Capital Cost Estimate Summary by Area WBS Area No. 4050 4100 4150 4200 4250 4300 4350 4400 4450 4500 4550 4600 4650 4700 4750 5050 5100 5150 5250 5300 6050 6100 6150 6250 7050 7100 7150 7250 7300 Storage ponds Main HV switch yard Control systems Communications Total Plant Infrastructure Permanent accommodation Water distribution lines Electrical power distribution Area roads Area communications Total Area Infrastructure Regional roads Electrical power feeder Water transmission line Port facilities Total Regional Infrastructure First Fill reagents and consumables Ocean freight Spares Mobilisation and demobilisation Commissioning Total Miscellaneous Total Direct Cost Indirect Cost Construction facilities Construction camp EPCM PCM for turnkey packages Total Indirect Cost Total Direct Cost Accuracy provision Total Initial Capital
WBS Area Title Site preparation and improvements Substation buildings Plant buildings Fire protection Water treatment Sewage disposal and treatment Mobile equipment Bulk fuel storage and distribution Tailings delivery line Tailings storage facility
5.0 Mt/a (US$) 833 396 1 166 148 3 075 022 258 239 200 000 224 292 5 502 750 257 895 Incl. with TSF 20 955 607 Incl. with TSF 657 403 3 470 000 1 644 972 588 348 38 834 071 6 000 000 1 500 000 1 500 000 3 850 000 50 000 12 900 000 0 0 0 500 000 500 000 1 129 275 4 225 437 2 143 663 2 323 903 1 594 706 11 416 984 258 256 594 1 418 448 8 510 686 27 540 379 916 512 38 386 025 296 642 619 22 789 684 319 432 303
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18.13.4.22 Sustaining Capital Sustaining capital has been estimated for the proposed project life and includes the following: Mining includes mine infrastructure, progressive underground mine development and equipment Process plant includes sustaining capital for plant replacement and upgrades over time, and tailings facility wall lifts to increase capacity progressively. General capital includes an allowance for capital required to upgrade site buildings, mobile equipment replacement, computer replacement etc.
A summary of the sustaining capital allowance is shown in Table 18.57.

Table 18.57 Concentrator Phase Sustaining Capital Estimate Allowance Area Mining Tailings storage facility Process plant and process infrastructure General capital Total Sustaining Capital Estimate ($) 25 745 147 3 728 873 27 501 530 4 700 000 61 675 550
18.14 18.14.1 18.14.1.1
OPERATING COST ESTIMATE CIL Plant Methodology
Sedgman has developed operating cost estimates for the CIL process plant as described herein. The operating costs have been divided into the following discrete cost centres: Labour Operating consumables Maintenance materials Power Transport.
The operating costs have been determined from a variety of sources including: Supplier quotations AMC advice Sedgman database for similar operations First principal estimates.
Costs are presented in United States dollars and are based on prices obtained during the second quarter of 2010.
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The costs have been developed for a plant availability of 91.3% (8000 h/a) including scheduled and unscheduled maintenance. Table 18.58 summarises the total CIL plant operating costs for the life of mine (LOM).
Table 18.58 Total Annual Operating Cost Estimate, 3 Mt/a CIL Plant Area Labour Operating consumables Maintenance consumables Power Transport Total Cost/annum Labour Operating consumables Maintenance consumables Power Transport Total Cost/tonne of ore treated Labour Operating consumables Maintenance consumables Power Transport Total $/oz of gold produced Units $M $M $M $M $M $M $/t ore $/t ore $/t ore $/t ore $/t ore $/t ore $/oz Au $/oz Au $/oz Au $/oz Au $/oz Au $/oz Au Cost ($) 29.60 106.38 6.32 31.49 29.42 203.21 1.87 6.70 0.40 1.98 1.85 12.80 36.52 131.24 7.80 38.86 36.29 250.71
18.14.1.2
Labour
A summary of estimated labour costs is provided in Table 18.59. Labour costs are based on recent rates from Botswana, which are expected to be similar to those in Sudan. A total plant workforce of 192 has been estimated, excluding both mining and administration personnel. The workforce is comprised mainly of local labour, with expatriates initially used for senior management roles. 18.14.1.3 Operating Consumables
Identified consumables and their anticipated consumption rates are given in Table 18.60. The analysis assumes the exhaustion of fresh ore supplies at the end of operating year 4 and with it the cessation of crushing circuit operations.
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Table 18.59 Annual Processing Plant Labour Costs, 3 Mt/a CIL Plant Position Operating Labour Senior Foreman Day Foreman Shift Foreman Control Room Operators Crush/Reclaim Grind Leach/Adsorption Elution/Goldroom Reagents Water/Tails/Services Mobile Equipment Trainees Laboratory Metallurgical Clerk Maintenance Mech/Elect/Inst Supervisors Shift Tradesmen Shift Electrical Shift TA's Align & Cond. Monitoring Mobil Equip Ops Materials Controller Maint. Planner Day Crew Tradesmen Trades Assistants Maintenance Clerk Professional Mill Manager Plant Metallurgist Junior Metallurgists Mechanical Engineer Mech/Elect/Inst Supt Electrical Engineer Chief Chemist Consultants Total 1 2 3 1 1 1 1 0.25 192.25 382 899 555 314 172 137 277 657 277 657 277 657 57 379 120 724 5 595 714 0.13 0.19 0.06 0.09 0.09 0.09 0.02 0.04 1.87 4 1 4 4 16 8 8 8 8 8 8 16 16 1 4 24 8 24 1 2 4 2 2 2 1 229 516 47 876 191 504 42 156 168 624 84 312 84 312 84 312 84 312 84 312 84 312 140 384 168 624 10 539 229 516 790 584 263 528 252 936 47 876 21 078 191 504 95 752 65 882 21 078 10 539 0.08 0.02 0.06 0.01 0.06 0.03 0.03 0.02 0.03 0.03 0.03 0.05 0.06 0.00 0.08 0.26 0.09 0.08 0.02 0.01 0.06 0.03 0.02 0.01 0.00 Number Total Cost ($/a) Total Cost ($/t dry feed)
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Table 18.60 LOM Plant Consumable Costs, 3 Mt/a CIL Plant Identified Consumables Crusher Consumables Primary Crusher liners Grinding Consumables SAG mill grinding media SAG mill liners Primary ball mill grinding media Primary ball mill liners Reagents Quicklime Sodium cyanide Sodium hydroxide Hydrochloric acid Activated carbon Flocculant SMBS Copper sulphate Hydrated lime Miscellaneous Laboratory consumables Plant assay costs Diesel costs mobile plant Diesel costs process plant Total 85 450 L/a 703 560 L/a 87 681 181 1 489 106 376 1.250 kg/t 0.823 kg/t 0.117 kg/t 0.053 kg/t 0.020 kg/t 0.025 kg/t 0.690 kg/t 0.081 kg/t 0.480 kg/t 2 562 48 795 702 514 910 1 587 6 571 3 278 2 590 0.910 kg/t 4 sets/a 1.150 kg/t 2 sets/a 5 791 3 960 21 866 3 969 70 000 t/set 842 Usage Rate $000
18.14.1.4
Maintenance Consumables
Maintenance consumables were estimated at 5% of the total mechanical and electrical capital costs per annum, as per industry standard. Mobile plant expenditure was assumed at $30 000 per annum. Table 18.61 summarises the maintenance consumable costs.
Table 18.61 Annual Maintenance Consumable Costs, 3 Mt/a CIL Plant Description Fixed Plant Mobile Plant Total Cost ($/a) 1 165 000 30 000 1 195 000
18.14.1.5
Power Costs
Power for the Hassai project has been assumed to be predominantly derived from the electrical grid supply. The unit cost for the grid power has been specified by AMC at $0.074/kWh. Power supply to the Nile pipeline has been assumed to be derived from diesel generators; Sedgman has assumed a diesel consumption of 0.26 L/kWh, with the diesel cost of $0.40/L.
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The installed operating equipment power demand was determined from vendor data or first principal estimates. Utilisation and load factors were then applied to the total to obtain power usage. Table 18.62 summarises the annual power costs for the Hassai CIL plant and associated services.
Table 18.62 Estimated Annual Power Costs, 3 Mt/a CIL Plant Description Crushing Reclaim Grinding Leach/adsorption Elution Gold room Tailings Reagents Services Subtotal Process Plant Nile River pipeline Total Power Usage Estimated Power (MWh/a) 1 550 1 225 47 988 10 784 114 297 3 183 410 2 034 67 584 9 315 76 899 Estimated Cost ($000/a) 115 91 3 551 798 8 22 236 30 150 5 001 969 5 970 Estimated LOM Cost ($000) 459 538 18 787 4 222 45 116 1 246 161 796 26 370 5 125 31 495
18.14.1.6
Transport Costs
Transport costs have been estimated based upon sea container rates of $7717.5/container, and road transport rates of $0.187/t. 18.14.1.7 Pre-production Costs
Allowances for pre-production labour and associated costs have been excluded from this estimate. 18.14.1.8 Overall Operating Costs
Overall process operating costs for the 3.0 Mt/a CIL Plant are estimated to be $203.2 M for the LOM, as summarised in Table 18.58. These costs translate to $12.80/t ore for processing costs, or $250.71/oz recovered. 18.14.2 VMS Concentrator
The operating costs for the VMS concentrator has been developed by AMEC based on the process design criteria, mass balance and mine plan described earlier in this report. Costs are in United States dollars and reflect an estimate base date of June 2010. The accuracy of the operating cost estimate is 30% and reflects the plant operating at design capacity. AMEC obtained information for reagents, consumables and maintenance costs based on its in-house database, while AMC provided the operating cost estimate for transport, labour rates and salaries, and unit power cost.
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The operating cost estimate has been based on the process design criteria, mass balance, mine plan and schedule developed by AMEC. 18.14.2.1 Exclusions
No allowance has been made in this operating costs estimate for items such as: Concentrate treatment and refining charges Financing charges Contingency Escalation or exchange rate variations Depreciation and accounting effects General and Administration (including administrative management and support, logistics, environmental, safety, camp and security personnel). These costs have been compiled by AMC based on current Hassai operational costs. Exchange Rates
18.14.2.2
Where appropriate, an exchange rate of A$1.00 = US$0.75 has been applied. 18.14.2.3 Process Plant Operating Costs
The average plant operating costs are outlined in Table 18.63. These costs are based on a design basis throughput and feed grade. Annual costs based on a yearly mine plan were prepared for financial analysis. 18.14.2.4 Labour
The manning schedule was developed reflecting 12 hour continuous shift rosters and coverage requirements for leave entitlements. The process manning schedule is summarised in Table 18.64. Labour costs have been based on data supplied by AMC from the Hassai site, with expatriate rates based on AMECs database.
Table 18.63 Average Process Operating Costs, 5 Mt/a VMS Concentrator Labour Power Reagents Consumables Maintenance materials Product transport Total US$/t ore US$/t Cu US$/lb Cu 5 568 965 11 603 311 6 226 532 13 367 481 2 719 925 7 418 638 46 904 851 9.38 856 0.39
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Table 18.64 Summary of Operations Labour Structure, 5 Mt/a VMS Concentrator Section Production Metallurgy and Laboratory Maintenance Total Process Plant Operating Labour Number 226 34 27 287
18.14.2.5
Reagents
Reagent consumption rates are based on testwork data and on information supplied by AMC. Reagent supply costs are based on AMECs database, and include transport to the Project site. Table 18.65 summarises average consumption quantities, and unit and average annual costs for major reagents and water.
Table 18.65 Major Reagent Costs, 5 Mt/a VMS Concentrator Reagent Water Collector Frother Flocculant Quicklime Total Cost Unit Cost $0.62/m
3
Annual Consumption (t/ML/m ) 3 972 800 270 177 198 9 908

3
Annual Cost (US$) 2 463 136 577 800 557 036 702 336 1 926 224 6 226 532
$2140/t $3140/t $3540/t $194/t
18.14.2.6
Power
The power consumption is estimated from the installed power values presented in the equipment lists. Suitable utility factors are applied to reflect the operating power draw of each equipment item, and the resultant operating power draw is converted to the annual power usage requirement by application of the relevant annual operating hours for the equipment item. The power unit cost used by AMEC is US$0.074/kWh, as supplied by AMC for national grid power. Power costs for each plant area and throughput case are summarised in Table 18.66.
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Table 18.66 Power Costs, 5 Mt/a VMS Concentrator Crushing/ grinding (3200) Flotation (3350) Concentrate filtration (3400) Tailings handling (3850) Reagents (3900) Services (3950 and 3955) Administration and Other Total Power Costs 7 926 960 1 938 927 261 790 645 857 25 915 753 542 50 320 11 603 311
18.14.2.7
Consumables
Consumables include items such as crushing and grinding media and liners, packaging materials required for the despatch of the intermediate product, filter cloths, lubricants and laboratory reagents. The consumable costs were supplied by AMEC and based on costs from similar projects. The total consumables cost for each case are summarised in Table 18.67.
Table 18.67 Consumables Cost Summary, 5 Mt/a VMS Concentrator Consumable Crusher liners Mill liners, AG mill Mill liners, regrind mill Mill liners, SAG Laboratory/samples Grinding media, ball mill Grinding media, SAG Grinding media, regrind mill Copper concentrate filter cloths Diesel for mobile equipment/miscellaneous Mobile and hire equipment Bags for product, 2 t Total Consumables Costs Unit Cost $4.0/kg $2.4/kg $2.4/kg $2.4/kg $20/sample $1100/t $1100/t $5040/t Allowance Allowance Allowance $8/bag $ 800 000 360 000 360 000 600 000 547 500 3 300 000 4 400 000 277 200 250 000 1 500 000 100 000 872 781 13 367 481
18.14.2.8
Maintenance Materials
The maintenance section of the operating cost estimate has been based on percentage factors applied to the direct capital cost for the various plant areas. The percentage factors applied and annual costs are summarised in Table 18.68.
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Table 18.68 Maintenance Materials, 5 Mt/a VMS Concentrator Plant Area Comminution/beneficiation Flotation Concentrate handling Tails disposal Reagents Air distribution Water distribution Mobile equipment Total Maintenance Costs ($/annum) Units % % % % % % % $ Basis (%) 5.0 2.0 2.0 2.0 2.0 1.0 1.0 Allowance $ 1 679 732 489 737 186 192 103 716 28 818 18 801 12 928 200 000 2 719 925
18.14.2.9
Product Transport
Product transport costs of $34/t have been based on cost data supplied by AMC for transport from site to Port Sudan. At full production, an average of 217 647 t/a of concentrate will be transported at an annual cost of $7.4 M. 18.14.3 Mining Costs
As discussed earlier in Section 18, mine operating costs and schedules have been determined by CSA for Kamoeb and heap leach tailings and stockpile reclaim mining, and by AMEC for mining at Hadal Awatib and Hassai South. Costs are summarised in Table 18.69, with details in the relevant parts of Sections 18.2 to 18.4.
Table 18.69 Summary of LOM Mine Operating Cost Estimates Area Heap leach tailings and stockpile reclaim Kamoeb Hadal Awatib open pit Hassai South underground Cost $/t ore 1.15 20.07 14.14 26.17
18.14.4
General and Administration
G&A and Other costs have been provided by AMC based on 2009 Hassai site data as shown in Table 18.70, revised for increased throughput. The total of 6 845 330 Euros translates to approximately $9.41 M. Going forward, these costs are estimated to be $8.500 M/a for the CIL operation due to improved efficiencies and reduced manpower requirements, increasing again to $9.241 M/a for the combined CIL+VMS operation.
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Table 18.70 AMC 2009 G&A Costs in Euros as Basis for Scoping Study
Hassai Safety Hassai Management Medical Hassa Internal logistic on site Camp maintenance Camp food Camp cleaning Atbara house PZU office expenses Warehouse expenses Plane External beneficiaries Training Ariab development fund AMC Board Khartoum Bank charges Total 51 626 1 161 124 458 553 309 428 574 537 658 109 116 105 6 221 175 826 444 253 372 312 291 429 57 834 247 126 163 825 1 736 318 20 704 6 845 330
18.15 18.15.1
PROJECT ECONOMICS Overview
La Mancha has prepared financial models for: The Base Case, ie the existing heap leach project, reserves for which are due to be exhausted by the end of 2013. The CIL Phase, starting in 2013 and treating then-existent oxide gold reserves, stockpiled acidic mineralisation and heap leach residue resources as identified in this report. The VMS Phase, starting in 2015 using the VMS Mining Inventory defined in the AMEC mining study.
The production profile (gold and gold equivalent copper) for the combined heap leach + CIL + concentrator envisaged business plan is illustrated in Figure 18.24. Copper has been related to gold taking account of metal prices and metallurgical recoveries.
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Figure 18.24 Metal Production Profile

500,000 450,000
VMSCopperasGoldeqv.
400,000 350,000
GoldProduction,oz
300,000 250,000 200,000 150,000 100,000 50,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2021
2022
2023
2024
2025
It is emphasised that economic evaluations of the CIL and VMS phases are based in part on mining of Inferred Mineral Resources which are too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. The NI43-101 regulations confirm that confidence in the estimate is considered insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. On that basis, Inferred Mineral Resources must be excluded from estimates forming the basis of feasibility or other economic studies. However, the regulators have allowed an exemption for La Mancha to report the results of the preliminary assessment based on Inferred Resources, providing the above qualifications are clearly noted. The term Mining Inventory has been introduced to distinguish the Inferred Resources contained within preliminary mining designs from Mineral Reserves. Inputs for the financial models include: Production schedules and mining costs prepared by AMC for the Base Case, CSA for the CIL Phase and AMEC for the VMS Phase, as shown in tables in relevant parts of Section 18.1. Note that for the financial model, La Mancha has added an additional 372 088 t at 4.29 g/t Au spread over 3 years to bring the scheduled tonnages up to 3.0 Mt/a. This material has been identified overlying VMS mineralisation in the Hadal Awatib pit design. Process recoveries determined by AMC (current operation and CIL) and AMEC (VMS), as provided in Section 16. Capital and site operating costs by AMC (current operation), Sedgman (CIL) and AMEC (VMS), as provided in Sections 18.1 and 18.13. Capital investment is assumed to be over a 2 year period for each expansion phase, at a ratio of 30:70.
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Off-site operating costs as determined by AMC for current heap leach and proposed CIL operations. Off-site operating costs for copper concentrates of $50/t for transport ex-Port Sudan, TCs of $50/t concentrate and RCs of $0.50/lb copper. Payment terms: 96.5% of contained copper in concentrates 100% payable gold.
Gold and copper prices of $950/oz and $2.19/lb, respectively, over the life of the project.
The models include provisions for royalties and income tax, and are on a 100% equity financing basis. A discount rate of 5% has been applied. Note that at this level of study, no provision has been made for working capital or for delay in accruing income from concentrate sales. Key assumptions and financial highlights from the CIL and VMS models are shown in Table 18.71. Total gold and copper production is estimated at 1.19 Moz and 0.323 Mt, respectively. Average cash costs are $482/oz gold in the CIL circuit and $1.24/lb copper from the concentrator (including gold credits). The basic findings for the three scenarios are as follows: The current operation is scheduled to process 2.6 Mt between 2011 and 2013, producing 0.30 Moz, which provides a NPV of $36 M at a 5% discount rate. The CIL Phase processes 15.3 Mt for 2013-2018, producing 0.81 Moz, and shows an NPV (5%) of $149.8 M and an IRR of 30%. Average cash costs are $482/oz gold in the CIL circuit. The VMS Phase treats 29.4 Mt between 2015 and 2025, producing 0.32 Mt of contained copper and 0.38 Moz of contained gold in concentrates. The NPV is $122.7 M and the IRR 11%. The combination of the CIL and VMS Phases operating between 2013 and 2025 have an NPV (5%) of $239 M and an IRR of 17%.
Sensitivity analysis was undertaken for the expansion phases, confirming that the combined project (CIL and VMS, without production from 2010 2012) is very sensitive to revenue (metal price or grade): an increase of 10% in gold price adds approximately $80 M to NPV (NAV), while a similar increase in copper price adds $91 M. The combined project is also highly sensitive to operating costs with an increase of 10% leading to a $100 M reduction in NPV, whereas a similar increase in capital cost reduces the combined NPV by $47 M. NPV (NAV) is calculated using 5% discount rate.
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Table 18.71 Financial Highlights for Proposed VMS Project, by Phase Heap Leaching Main Assumptions Gold price Copper price Royalties (%) Corporate tax rate Mineral Reserves Probable Reserves (Mt@g/t) Additional Mineral Resources Measured Resources (Mt@g/t) Indicated Resources (Mt@g/t) Inferred Resources (Mt@g/t Au, Cu%) Total Mining Inventory Tonnes, Mt Grades Production Commissioning Yearly mill run rate, Mt/a Gold recovered, 000 oz Copper recovered, 000 t Metallurgical recovery Yearly production* Mine life, years Financials Initial capital cost Total sustaining capital Average cash costs Internal rate of return NPV @ 0% discount NPV @ 5% discount Payback** , years * ** *** Excludes low production in final year Calculated from commencement of production Including gold credit $185.6 M $4.9 M $ 482/oz Au 30% $195.8 M $149.8 M 1.9 $319.4 M $35.9 M $ 1.24/lb Cu*** 11% $230.9 M $122.7 M 3.9 $505.0 M $40.8 M 17% $447.1 M $238.7 M varies Gold Copper Gold (oz) Copper (t) 2010 - 2013 0.65 299 -73% -74 780 -4 2013 3 811 -79% -155 880 -6 2015 5 378 323 36% 90% 59 355 51 516 10 6+ --1 189 323 ---Gold, g/t Copper, % 2.6 4.88 -15.8 2.01 -29.4 1.11 1.22 45.2 1.43 1.22 3.8 @ 1.9 4.6 @ 2.1 6.8 @ 1.7 29.4 @ 1.1, 1.2 Gold Copper USD 950/oz -7% -15% 2.6 @ 4.88 USD 950/oz -7% -10% 0.6 @ 6.0 USD 950/oz USD 2.19/lb 5% 3.5% 10% Phase 1: CIL Phase 2: VMS Phase 1 and 2
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Table 18.72 Sensitivity Analysis Matrix Gold Price
Metal Prices Sensitivity Analysis

NAV @ 5% discount rate 238,666 4,000 4,400 4,800 5,200 5,600 6,000 6,400 6,800 7,200 7,600 8,000 8,400 8,800 9,200 600 -207,502 -125,856 -47,603 29,175 105,531 181,740 257,948 334,095 410,223 486,352 562,480 638,608 714,736 790,865 650 -164,234 -83,892 -6,031 70,728 146,995 223,203 299,412 375,547 451,675 527,803 603,931 680,060 756,188 832,316 700 -121,356 -42,410 35,187 111,905 188,124 264,332 340,535 416,663 492,792 568,920 645,048 721,177 797,305 873,433 750 -79,652 -929 76,405 153,044 229,253 305,461 381,652 457,780 533,909 610,037 686,165 762,293 838,422 914,550 800 -38,677 39,980 117,050 193,601 269,809 346,018 422,196 498,325 574,453 650,581 726,710 802,838 878,966 955,094 850 900 2,192 43,061 80,713 121,314 157,589 198,128 234,050 274,500 310,259 350,708 386,467 426,917 462,634 503,072 538,762 579,200 614,891 655,328 691,019 731,456 767,147 807,585 843,275 883,713 919,404 959,841 995,532 1,035,970 Gold Price 950 1,000 1,050 1,100 1,150 1,200 83,866 124,668 165,470 206,272 247,074 287,747 161,907 202,446 242,985 283,523 324,062 364,601 238,666 279,163 319,632 360,090 400,539 440,989 314,949 355,399 395,849 436,298 476,748 517,198 391,158 431,608 472,057 512,507 552,956 593,406 467,366 507,816 548,256 588,694 629,131 669,569 543,509 583,947 624,384 664,822 705,259 745,697 619,637 660,075 700,513 740,950 781,388 821,825 695,766 736,203 776,641 817,078 857,516 897,953 771,894 812,332 852,769 893,207 933,644 974,082 848,022 888,460 928,897 969,335 1,009,772 1,050,210 924,151 964,588 1,005,026 1,045,463 1,085,901 1,126,338 1,000,279 1,040,716 1,081,154 1,121,591 1,162,029 1,202,467 1,076,407 1,116,845 1,157,282 1,197,720 1,238,157 1,278,595 1,250 328,347 405,139 481,439 557,647 633,856 710,006 786,134 862,263 938,391 1,014,519 1,090,648 1,166,776 1,242,904 1,319,032 1,300 368,913 445,635 521,888 598,097 674,305 750,444 826,572 902,700 978,829 1,054,957 1,131,085 1,207,213 1,283,342 1,359,470
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Table 18.73 Sensitivity Analysis Matrix Operating Costs
Operating and Capital Costs Sensitivity Analysis

NAV @ 5% discount rate 238,666 -14% -12% -10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% -14% 443,289 433,623 423,956 414,290 404,623 394,957 385,290 375,624 365,957 356,291 346,624 336,958 327,292 317,625 307,959 -12% 423,734 414,068 404,401 394,735 385,069 375,402 365,736 356,069 346,403 336,736 327,070 317,403 307,737 298,070 288,404 -10% 404,180 394,513 384,847 375,180 365,514 355,847 346,181 336,514 326,848 317,182 307,515 297,849 288,182 278,516 268,849 -8% 384,625 374,959 365,292 355,626 345,959 336,293 326,626 316,960 307,293 297,627 287,960 278,294 268,627 258,961 249,295 -6% 365,070 355,404 345,737 336,071 326,404 316,738 307,072 297,405 287,739 278,072 268,406 258,739 249,073 239,406 229,740 -4% 345,516 335,849 326,183 316,516 306,850 297,183 287,517 277,850 268,184 258,517 248,851 239,185 229,518 219,852 210,185 Inputs: Operating Costs -2% 0% 2% 325,948 306,331 286,634 316,281 296,665 276,967 306,615 286,998 267,301 296,948 277,332 257,634 287,282 267,666 247,968 277,616 257,999 238,301 267,949 248,333 228,635 258,283 238,666 218,968 248,616 229,000 209,302 238,950 219,333 199,636 229,283 209,667 189,969 219,617 200,000 180,303 209,950 190,334 170,636 200,284 180,667 160,970 190,617 171,001 151,303 Op cost over-run 4% 266,936 257,270 247,603 237,937 228,270 218,604 208,937 199,271 189,604 179,938 170,271 160,605 150,938 141,272 131,606 6% 247,238 237,572 227,905 218,239 208,572 198,906 189,240 179,573 169,907 160,240 150,574 140,907 131,241 121,574 111,908 0% 8% 227,541 217,874 208,208 198,541 188,875 179,208 169,542 159,875 150,209 140,542 130,876 121,210 111,543 101,877 92,210 10% 207,790 198,124 188,457 178,791 169,124 159,458 149,792 140,125 130,459 120,792 111,126 101,459 91,793 82,126 72,460 Cap cost over-run 12% 187,997 178,331 168,664 158,998 149,331 139,665 129,998 120,332 110,666 100,999 91,333 81,666 72,000 62,333 52,667 14% 167,973 158,307 148,640 138,974 129,307 119,641 109,974 100,308 90,642 80,975 71,309 61,642 51,976 42,309 32,643 0%
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The CIL and VMS phases each operate at full throughput for only 5 years. The financial outcomes are, therefore, significantly affected by increases in Mining Inventory. The potential to increase resources, particularly of VMS material, is considered to be high, with VMS mineralisation known to lie at the base of four additional pits and with a number of untested electrical conductors identified during exploration. In addition, there is a belief that the underground inventory may be artificially diluted and that changes to the resource modelling approach might increase head grade to the plant. 18.15.2 18.15.2.1 Individual Phase Description Current Operations: Heap Leaching
Current operations are based on heap leaching of Mineral Reserves of 2.6 Mt of ore grading 5 g/t Au for 410 000 oz of contained gold. The mine-life is expected to be 4 years to the end of 2013. Plant feed consists of Quartz Ore, SBR Oxide Ore and Acidic Ore. The theoretical Production Profile is shown in Figure 18.25.
Figure 18.25 Metal Production Profile Heap Leach Operations 2010-2013
500,000 450,000 400,000 350,000
Acidicnonwashable ore Acidicwashable ore SBRore Quartz ore
GoldProduction,oz
300,000 250,000 200,000 150,000 100,000 50,000 2010 2011 2012 2013 2014 2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Processing capacity averages 700 kt of ore per annum with gold recovery averaging 73%. production averages 75 000 oz per annum.
Gold
Theoretical production and financial outcomes are illustrated in Table 18.74. It is important to note that economic outcomes do not exactly reflect projections for current years as the gold price used is $950/oz, whereas the current realised gold price is substantially above this amount.
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Acidic ore stockpiled from Oxide ore pits comprises a significant portion of the plant feed. In order to treat this material, the addition of a washing plant was studied in 2006. This upgrade would be economically viable, but, the capital cost (then estimated at $35.5 M) for the washing plant and water pipeline from the Nile River is significant and not easy to support on this reserve.
Table 18.74 Production and Cashflow Projections Heap Leach Project
2,010 2,011 2,012 2,013 Tot / Avg
Physical Data
Tonnes of Ore Mined Tonnes of waste Tonnes milled Gold Grade (g/t) Recovery (%) Gold Production (oz) Revenues Cost of Sales Mining and Milling Costs Mining Costs Haulage Costs Milling cost G&A and Other Costs Office / Administration Government Royalties Stock Variation Gross Margin Depreciation & Amortization of capital assets Gross Margin Cominor Mine Operating Income Income tax Net Earnings (Loss) 474,695 643,272 537,740 300,000 1,955,706 5,694,566 4,669,373 3,299,665 2,000,000 15,663,604 751,376 631,835 650,598 582,000 2,615,808 4.22 4.96 3.75 6.92 4.88 70% 73% 74% 74% 73% 71,728 73,079 57,871 96,456 299,134 68,142 64,126 40,605 16,978 710 22,917 23,521 9,241 4,770 9,510 4,016 13,198 80 -9,101 -1,365 -9,101 13,606 9,066 9,066 69,425 48,110 34,276 14,036 969 19,271 13,834 9,241 4,860 -267 21,314 11,098 426 10,643 1,596 9,046 19,878 1,880 1,380 500 0 17,998 54,978 47,085 30,117 9,440 833 19,843 16,969 9,241 3,848 3,879 7,892 11,428 158 -3,377 -507 -3,377 11,929 35,000 0 10,000 25,000 0 -23,071 91,633 51,882 26,534 5,658 465 20,411 25,348 9,241 6,414 9,693 39,751 10,223 795 30,323 4,548 25,775 45,690 0 0 0 0 45,690 284,177 211,203 131,532 46,113 2,977 82,442 79,671 19,892 22,815 72,974 45,946 1459 28,487 4,273 22,342 91,103 45,946 10,446 10,500 25,000 0 45,157
Profit and Loss Statement (in '000 US$)
Cash Flow Statement (In '000 USD)

Cash flows from operating activities Cash flows from investing activities Non-Plant Capital Expenditures Washing Plant for Acidic SBR Water line Cash flows from financing activities Free Cash Flow to Equity NPV @ 5% Discounting
0 4,540 35,684
While the current heap leach operation is viable, the requirement for additional water, the high operating costs for the wash plant and the existence of approxiumately 10 Mt of gold-bearing heap leach residue led to the consideration of a CIL plant installation.
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18.15.2.2
Phase One Expansion: CIL Plant
Processing of ore via a CIL Plant provides a number of opportunities due to substantially increased efficiencies. CIL provides washing of acidic ore as above, but incorporated in the plant and water pipeline designs. In addition CIL provides the following improvements: Reduced unit operating costs due to increased capacity from 0.7 Mt/a to 3.0 Mt/a Increased gold recovery from 73% to 93% for fresh ore Increased mining inventory due to lower costs and higher recovery, especially for the existing Quartz Resource Ability to treat the Heap leach residue recovering 70% of the remaining gold.
At a much higher capacity the CIL extends the mine-life by five years to 2018. Average gold production for the CIL Plant is 156 000 oz during the full-year operations, ie. double that of the heap leach operation. The production profile is shown in Figure 18.26. Note that the recoveries used to determine metal production have been determined by La Mancha, taking account of the difference between cyanidable and fire assays as appropriate (see Section 16.2.4).
Figure 18.26 Metal Production Profile CIL Phase, 2013-2018
500,000 450,000 400,000 350,000
HeapLeachResidue Acidicnonwashableore Acidicwashableore SBRore Quartzore
GoldProduction,oz
300,000 250,000 200,000 150,000 100,000 50,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Quartz Ore contribution is significant from the end of 2012. Reduced costs lower the cut-off grade for the existing mine design, allow deeper development of existing pits, and development of new pits.
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Acidic Ore is blended in the feed over the first two years. Gold production from this ore is increased due to higher gold recovery over heap leaching. Three plant capacities were examined: 2 Mt/a, 3 Mt/a and 4 Mt/a. The NPV increased with increasing capacity because the heap leach residue is easily reclaimed at higher rates (it does not require mining capital). The 3 Mt/a capacity case was chosen to provide a reasonable stand-alone mine-life and to allow water capacity for the subsequent VMS concentrator. Table 18.75 contains the physical production data and related projected cashflow analysis.
Table 18.75 Production and Cashflow Projections CIL Phase
2,011 2,012 2,013 2,014 2,015 2,016 2,017 2,018 Tot / Avg
Physical Data
Tonnes milled Gold Grade (g/t) Recovery (%) Gold Production (oz) 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 871,489 17,905,297 2.61 2.09 1.96 1.92 1.62 1.62 2.27 83% 82% 80% 78% 70% 70% 79% 209,801 165,133 150,687 144,230 109,566 31,828 811,245 199,311 92,683 54,183 10,342 3,106 40,735 8,500 13,952 16,049 106,628 36,010 2133 72,750 7,275 65,475 117,534 54,725 130,912 0 3,220 34,203 79,808 8,630 20,136 11,892 27,748 0 0 0 0 0 0 0 156,876 83,852 61,912 19,484 3,671 38,758 8,500 10,981 2,459 73,025 36,010 1460 38,475 3,847 34,627 73,096 375 0 0 143,152 74,607 56,087 14,088 3,598 38,400 8,500 10,021 0 68,545 36,010 1371 33,906 3,391 30,515 66,526 750 0 0 137,018 64,717 46,626 4,847 3,379 38,400 8,500 9,591 0 72,302 36,010 1446 37,737 3,774 33,964 69,974 750 0 0 104,087 30,237 770,683 390,729 272,776 89,216 20,680 246,178 45,498 53,948 18,507 379,953 190,512 7599 197,040 19,704 177,336 386,356 190,512 3,220 114,011 28,766 39,641 4,875 0 195,843
Profit and Loss Statement (in '000 US$)

Revenues Cost of Sales Mining and Milling Costs Mining Costs Haulage Costs Milling cost G&A and Other Costs Office / Administration Government Royalties (X% of sale) Stock Variation Gross Margin Depreciation & Amortization of capital assets Gross Margin Cominor Mine Operating Income Income tax Net Earnings (Loss) 57,606 17,265 41,820 12,149 0 0 3,420 993 38,400 11,155 8,500 7,286 0 46,482 3,000 2,117 0 12,972
36,010 10,461 930 259 11,401 1,140 10,261 46,271 750 0 0 2,770 277 2,493 12,954 750 0 0

Cash flows from operating activities Cash flows from investing activities Non CIP Capital Expenditures Mill - CIP 3mtpa Direct costs Mill - CIP 3mtpa Indirect costs Water line Sustaining CAPEX Cash flows from financing activities Free Cash Flow to Equity NPV @ 5% Discounting IRR
0 0 117,534
375 0 72,721
750 0 65,776
750 0 69,224
750 0 45,521
750 0 12,204
-54,725 -130,912 149,764 30%
The CIL Phase has been evaluated separately from the Heap Leach operation. Only revenue and costs related to the CIL are used. CIL production begins in 2013.
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Capital expenditure of $186 M consists of: $3 M for additional mine fleet for the extended Quartz (Kamoeb) mine activity $40 M for the water pipeline from the Nile River $143 M for plant and infrastructure (including a 77 km powerline).
Cash operating costs decrease from $706/oz gold with heap leaching to $482/oz for the CIL plant. Gold production increases from 299 koz with the heap leach only to 1 034 koz with CIL included. Gold production during CIL operation is 811 koz. Heap leach production to the end of 2012 is 203 koz. Infrastructure for the CIL phase was designed with consideration for the expected VMS phase. Water and power supply was sized to suit the CIL operation running in parallel with the VMS operation. 18.15.2.3 Phase Two Expansion: VMS Phase
Resource identification of approximately 50 Mt of VMS mineralisation created a new expansion opportunity and a need to consider the CIL and VMS development in a new business plan. Figure 18.27 illustrates how the VMS project changes the AMC business plan. Copper production has been converted to gold equivalent, taking account of metal prices and recoveries, for illustration purposes in the chart, but is shown separately in Table 18.76.
Figure 18.27 Metal Production Profile VMS Phase, 2015-2025
500,000 450,000
VMSCopperasGoldeqv.
400,000 350,000
GoldProduction,oz
300,000 250,000 200,000 150,000 100,000 50,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2021
2022
2023
2024
2025
Three capacities were reviewed during the scoping study: 2, 3.5 and 5 Mt/a. The 5 Mt/a case gave the best NPV, although the 3.5 Mt/a case gave the best match between mine capacity and plant. The lower production tail after year 2020 represents the Hassai Underground mine production after the Hadal Awatib pit is exhausted. This case was used for the economic model to test the strength of the
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proposal. However, AMC is confident that additional open pit resources will be defined at Hadal Awatib and other pits filling the capacity after 2020. The physical inputs and cashflow model for the VMS Phase are shown in Table 18.76.
Table 18.76 Production and Cashflow Projections VMS Phase
2,013 2,014 959 24,859 0 2,015 4,485 16,520 4,300 204 2,016 4,998 9,659 5,000 192 2,017 4,957 6,629 5,000 186 2,018 4,972 2,728 5,000 230 2,019 4,118 1,884 5,000 216 2,020 1,143 0 1,401 70 2,021 1,249 0 1,249 62 2,022 832 0 832 41 2,023 744 0 744 38 2,024 514 0 514 27 2,025 Tot / Avg 323 0 323 17 29,362 79,536 29,362 1,281
Physical Data
Tonnes Tonnes Tonnes Tonnes of ore mined, '000 of waste mined, '000 of ore Milled, '000 of Concentrate Produced, 000 t 69 17,258 0
Metal in Concentrate Gold from concentrate, oz Copper from concentrate, '000 t Sales Data Metal Sales, t and oz Gold from concentrate, oz Copper from concentrate, '000 t Metal Prices, USD Gold, USD/oz Copper, USD/t Metal Revenue, '000 USD Gold from concentrate Copper from concentrate
47,462 51
62,498 48
61,776 47
62,692 58
62,346 54
22,827 22,816 12,803 10,152 18 16 10 9
7,509 7
5,014 4
377,896 322
0 0 950 4,800 0 0
0 0 950 4,800
47,462 49 950 4,800
62,498 46 950 4,800
61,776 45 950 4,800
62,692 56 950 4,800
62,346 52 950 4,800
22,827 22,816 12,803 10,152 17 15 10 9 950 4,800 950 4,800 950 4,800 950 4,800
7,509 6 950 4,800
5,014 4 950 4,800
377,896 310 950 4,800
0 45,089 59,373 58,687 59,557 59,229 0 236,813 222,895 215,821 266,880 250,698
21,686 21,675 12,163 9,645 7,133 4,763 359,001 81,940 71,825 47,742 43,972 31,125 20,015 1,489,725
P&L Statement (In '000 USD)

Revenues Cost of Sales Mining Costs Underground Mining Total - Underground Underground mining ($/t) Open Pit Mining Total - Open Pit Open pit mining ($/t) Total Mining Costs Milling costs Milling ($/t) Concentrate Treatment & Shipping Cost Refining Charge Government Royalties Gold Copper Stock Variation G&A and Other Costs Gross Margin Depreciation Mine Operating Income Income tax Net Earnings (Loss) 0 0 0 0 0 -31,975 9,241 -9,241 320 -9,561 0 -9,561 -41,216 0 0 0 0 0 -69,552 9,241 0 9,241 0 281,902 282,268 274,508 326,437 309,927 103,625 93,500 59,905 53,616 38,258 24,778 1,848,726 9,241 181,759 156,967 157,948 159,227 227,044 89,117 66,027 46,171 41,383 33,250 26,359 1,203,734
3,330 48 28,645 1.66 31,975
27,631 42 41,921 1.67 69,552
56,999 31 39,072 2.04 96,071 43,865 10.20 20,369 5,631 10,543 2,254 8,288 -3,961 9,241
31,224 25 35,176 2.62 66,400 45,899 9.18 19,172 5,300 10,770 2,969 7,801 186 9,241
29,842 25 35,285 3.40 65,126 45,667 9.13 18,563 5,131 10,488 2,934 7,554 3,730 9,241
31,966 24 26,643 4.19 58,608 47,336 9.47 22,955 6,345 12,319 2,978 9,341 2,422 9,241
31,464 24 23,539 5.01 55,003 46,807 9.36 21,563 5,961 11,736 2,961 8,774 76,733 9,241 82,883 54,681 28,202 2,820 25,382
28,244 30,973 19,931 16,227 11,291 25 25 24 22 22 1,054 0 0 0 0 0.00 0.00 0.00 0.00 0.00 29,298 30,973 19,931 16,227 11,291 15,212 14,329 10.86 11.48 7,048 1,948 3,952 1,084 2,868 22,417 9,241 6,178 1,708 3,598 1,084 2,514 0 9,241 9,478 11.39 4,106 1,135 2,279 608 1,671 0 9,241 9,066 12.19 3,782 1,045 2,021 482 1,539 0 9,241 7,855 15.28 2,677 740 1,446 357 1,089 0 9,241
7,143 22 0 0.00 7,143 6,839 21.20 1,722 476 939 238 701 0 9,241
326,265 26 231,334 0 557,600 292,354 9.96 128,134 35,420 70,090 17,950 52,140 0 120,136 644,992 345,177 299,814 32,985 266,830 612,007 381,108 57,607 84,550 142,157 78,194 38,834 12,900 11,917 38,386 35,930 22,790 0 230,899
-9,241 100,143 125,301 116,560 167,210 4,546 -13,787 0 -13,787 -78,793 51,466 48,677 4,868 43,809 59,103 66,198 6,620 59,578 58,919 58,942
14,509 27,473 13,735 12,233 14,968 14,401 -459 13,072 0 1,307 -459 11,765 9,602 4,132 413 3,719 8,577 3,656 366 3,290
5,007 -1,581 5,930 3,721
57,641 108,268 5,764 51,877 10,827 97,442
-923 -5,302 0 0 -923 -5,302 5,007 -1,581 2,255 0 0 0 1,385 600 0 600

Cash flows from operating activities Cash flows from investing activities Mine Development - Capital Costs Underground Mining Open Pit Mining Total Mining Process Plant Plant Infrastructure Area Infrastructure Regional Infrastructure & Miscellaneous Indirect Cost Sustaining Capex Accuracy Provision Cash flows from financing activities Free Cash Flow to Equity NPV @ 5% Discounting IRR 91,315 118,867 114,526 158,806 156,796 13,955 11,757 1,363 13,120 3,855 0 2,435 2,435 7,552 500 1,262 1,762 6,914 0 2,903 2,903 10,301 0 4,925 4,925 36,926 26,166 13,321 11,867 4,011 0 0 0 4,011 0 0 0 4,011 0 0 0 3,426 0 0 0 133,809 185,623 19,734 53,169 72,903 23,458 11,650 3,870 3,575 11,516 0 6,837 0 25,016 18,493 43,509 54,736 27,184 9,030 8,342 26,870 0 15,953 0
835 0
1,420 0
5,790 0
4,011 0
5,376 0
4,011 0
4,011 0
4,011 0 9,310
3,426 0 8,442
2,255 0
785 0
-175,025 -264,417 122,712 11%
77,359 115,012 106,975 151,892 146,495
32,915 22,155
2,752 -2,966
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Project economics are positive due primarily to the relatively low operating cost ($1.24/lb of copper, including gold credits) in the first five years of VMS concentrator operation. Production for the VMS concentrator Phase is all related to copper concentrate production and sales. The treatment and sale terms are based on recent average industry performance. Currently, there is a shortage of concentrate, and therefore more favorable concentrate sale terms than shown in the model below. Given the high capital modeled with a mis-match of mine and mill capacity, AMC is encouraged that this phase provides an IRR of 11%. Sensitivities of NPV (5% discount rate) and IRR for this phase to metal prices are shown in Table 18.77.
Table 18.77 Sensitivity of VMS Phase Economics to Metal Price Changes
NPV 122,712 750 850 950 1150 1250 1350 IRR 0 750 850 950 1150 1250 1350
4,000 -113,950 -86,305 -58,768 -3,787 23,254 50,170
4,800 68,948 95,830 122,712 176,156 202,832 229,509
Copper Price, $/t 5,600 6,400 248,229 426,998 274,906 453,647 301,582 480,296 354,936 533,593 381,612 560,242 408,289 586,890 Copper Price, $/t 5,600 6,400 17% 25% 19% 26% 20% 27% 22% 29% 23% 30% 24% 31%
7,200 605,590 632,238 658,887 712,184 738,833 765,482
8,000 784,181 810,830 837,478 890,776 917,424 944,073
Gold Price, $/oz
4,000 -4% -1% 1% 4% 6% 7%
4,800 8% 10% 11% 14% 15% 17%
7,200 32% 33% 34% 36% 37% 38%
8,000 39% 40% 41% 43% 43% 44%
18.15.2.4
Gold Price, $/oz
Combined CIL and VMS Phase expansions
The combined expansion phases are shown as incremental to the existing operations, withboth phases operating in parallel from 2015 to give the production profile shown in Figure 18.28.
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Figure 18.28 Metal Production Profile Combined CIL and VMS Concentrator Phases
500,000 450,000
VMSCopperasGoldeqv.
400,000 350,000
GoldProduction,oz
300,000 250,000 200,000 150,000 100,000 50,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2021
2022
2023
2024
2025
Cash-flow and financial analysis for the combined expansion phases is shown in Table 18.78.
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Table 18.78 Production and Cashflow Outcomes CIL+VMS Phases

2,010 2,011 2,012 2,013 2,014 2,015 2,016 2,017 2,018 2,019 2,020 2,021 2,022 2,023 2,024 2,025 Tot / Avg
Physical Data
Metal Sales, t and oz VMS Gold from concentrate, oz Copper from concentrate, '000 t CIP Gold, oz 0 0 0 0 0 0 0 0 0 0 0 0 47,462 49 62,498 46 61,776 45 62,692 56 31,828 62,346 52 0 22,827 22,816 12,803 10,152 17 15 10 9 0 0 0 0 7,509 6 0 5,014 4 0 377,896 310 811,245
0 209,801 165,133 150,687 144,230 109,566
P&L Statement (In '000 USD)

Metal Prices Gold, USD/oz Copper, USD/t Revenues CIP VMS Cost of Sales Mining & Milling Costs CIP VMS Government Royalties CIP VMS Stock Variation CIP VMS VMS Concentrate Transport and Treatment Cost VMS Refining Charge G&A and Other Costs Gross Margin Evaluation / Eploration expenses Depreciation CIP VMS Mine Operating Income Income tax Net Earnings (Loss) 950 4,800 0 0 0 0 950 4,800 0 0 0 0 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800 950 4,800
0 199,311 156,876 425,054 419,287 378,596 356,674 309,927 103,625 93,500 59,905 53,616 38,258 24,778 2,619,408 0 199,311 156,876 143,152 137,018 104,087 30,237 0 0 0 0 0 0 0 770,683 0 0 281,902 282,268 274,508 326,437 309,927 103,625 93,500 59,905 53,616 38,258 24,778 1,848,726 0 0 93,425 54,183 31,975 13,952 0 16,049 -31,975 0 0 9,241 0 36,010 320 69,556 6,956 62,600 83,004 84,593 247,866 213,184 207,054 173,492 227,044 61,912 56,087 46,626 41,820 12,149 0 69,552 139,936 112,299 110,794 105,945 101,810 10,981 0 2,459 -69,552 0 0 9,241 0 36,010 4,546 31,727 3,173 28,554 10,021 10,543 0 -3,961 20,369 5,631 9,241 0 36,010 51,466 9,591 10,770 0 186 19,172 5,300 9,241 0 36,010 59,103 7,286 10,488 0 3,730 18,563 5,131 9,241 0 36,010 58,919 2,117 12,319 0 2,422 22,955 6,345 9,241 0 10,461 58,942 0 11,736 0 76,733 21,563 5,961 9,241 82,883 0 0 54,681 28,202 2,820 25,382 89,117 66,027 46,171 41,383 33,250 26,359 1,548,965 0 0 0 0 0 0 44,510 45,303 29,409 25,293 19,146 13,982 0 3,952 0 22,417 7,048 1,948 9,241 0 0 3,598 0 0 6,178 1,708 9,241 0 0 2,279 0 0 4,106 1,135 9,241 0 0 9,602 4,132 413 3,719 0 2,021 0 0 3,782 1,045 9,241 0 0 8,577 3,656 366 3,290 0 1,446 0 0 2,677 740 9,241 0 0 5,930 0 939 0 0 1,722 476 9,241 0 0 3,721 272,776 849,954 53,948 70,090 18,507 0 128,134 35,420 120,136 18,000 190,512 345,177 516,753 54,144 462,609
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
0 105,886
72,283 177,188 206,103 171,542 183,182
14,509 27,473 13,735 12,233
5,007 -1,581 1,070,443
3,000 15,000 0 0 0 0
0 0 14,968 14,401 -459 13,072 0 1,307
-3,000 -15,000 0 0
89,711 110,989 8,971 80,740 11,099 99,890
76,612 113,779 7,661 11,378
-923 -5,302 0 0
-3,000 -15,000 -3,000 -15,000
68,951 102,401
-459 11,765
-923 -5,302

Cash flows from operating activities Cash flows from investing activities CIP VMS Cash flows from financing activities Free Cash Flow to Equity NPV @ 5% Discounting IRR 2,017 164,256 195,190 167,611 174,226 156,796 13,955 0 13,955 0 3,855 0 3,855 0 7,552 0 7,552 0 6,914 0 6,914 0 10,301 0 10,301 0 36,926 26,166 13,321 11,867 4,011 0 4,011 0 4,011 0 4,011 0 4,011 0 4,011 0 9,310 3,426 0 3,426 0 8,442 5,007 -1,581 1,016,807 2,255 0 2,255 0 1,385 0 1,385 0 569,745 185,637 384,108 0 447,061 3,000 54,725 130,912 133,809 185,623 0 54,725 130,912 0 0 3,000 0 0 133,809 185,623 0 0 0 0 0
-6,000 -69,725 -130,912 -50,805 -183,607 150,301 191,334 160,059 167,313 146,495 238,666 17%
32,915 22,155
2,752 -2,966
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Production from the current operations for 2010 to 2012 is not included in the above analysis, although free cash from this period will go toward the required cash for the CIL Phase development. In addition, CIL cash-flow in the model reduces the required cash for the VMS concentrator phase. All modelling is based on identified resources (including Inferred Resources),and has excluded any upside potential. However, AMC is confident further potential exists at the project for feed for both the CIL and VMS concentrator phases. Other oxide pits that bottom in sulfides are thought to provide a means to extend cash-flow beyond 2019. Also optimisation of the mine schedules in future studies will improve the cash-flow profile for the final years of operation, improving NPV. 18.16 PROJECT IMPLEMENTATION
At this stage of the project, the implementation document prepared by AMC is intended as a guide only, to allow an understanding of typical project implementation timelines and strategy. 18.16.1 Project Schedule
A high level schedule for the project is outlined in Figure 18.29, and shows the construction of a 3 Mt/a CIL plant preceding the development of a 5 Mt/a VMS concentrator.
Figure 18.29 Hassai Mine Envisaged business Plan - Summary Project Schedule
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Hassai CIP Project

Current Heap Leach Operation CIP PFS/DFS CIP EPCM CIP - Commission and Operate Ariab VMS Project Scoping Study Drilling and Testwork Program Prefeasibility Study Definitive Feasibility Study EPCM Plant - Commission and Operate
18.16.2
Project Implementation Summary
Construction of the process plant and associated facilities, including supporting infrastructure, is recommended to be executed on an engineering, procurement and construction management (EPCM) basis.
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18.16.3
Project Implementation Scope
The Project scope of work will include the provision of facilities for mining, process plant, utilities and services, waste disposal and the associated infrastructure to support the construction work and ongoing operations. Responsibility for each element of the project will be assigned by AMC. It is envisaged that the division of responsibilities for the project implementation phase will be similar to that listed below. AMCs scope will include: Finance, governmental approvals, environmental approvals and licences Land purchases, security, medical, taxes and duties Mining planning and operations Engagement of specialist consultants and contractors for mining, process waste disposal and other specialist scopes.
The EPCM contractors scope will include: Process plants On site infrastructure including roads Regional road upgrades Assistance with management of off-site infrastructure works Management of specialist consultants and contractors as required. HSEC
18.16.4
The management of health, safety and the protection of the environment and community (HSEC) are major considerations when executing projects. A project management plan will be developed based on a platform of risk assessment and subsequent risk elimination and mitigation. These factors are to be included at every stage from the study, design, construction through to commissioning and handover of successful projects. 18.16.5 Long Lead Items
Long lead items will be identified and procured as a matter of priority. For the expected flowsheets, crushers, mills and flotation cells are expected to be key long lead items, and can significantly impact the critical path. Table 18.79 gives an indication of the lead times on major process plant equipment. The ball mills are clearly the long lead items that will impact on the project critical path, while other equipment items such as the crusher, flotation cells and filters will need to be procured very early in the engineering phase of the project. Suppliers will be approached during the definitive feasibility study FS phase of the project to establish the requirements for securing a purchase option and thereby initiating the purchase process in time to meet the project schedule. In addition, the options for second hand equipment will be sought during the FS. Use of second-hand equipment may provide some significant schedule and cost reductions.
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Table 18.79 Current Equipment Lead Times Equipment Crushers Ball mill Ball mill (sourced from China) Flotation cells Thickener Pressure filter Lead Time 20 weeks 40-50 weeks 40 weeks approximately 26-35 weeks (depending on vendor) 30 weeks (depending on vendor) 9 working months approximately
18.16.6
Logistics
The project procurement philosophy is based on sourcing the bulk of the equipment and materials from within Sudan (if possible) and other suppliers in Africa. However, most major equipment items are expected to be sourced internationally. Where overseas shipping is required, an experienced freight and logistics company will be utilised to manage the logistics. Once the goods are received and cleared through a port, management and control will shift to the designated transport company. Transportation of over-dimension loads will require an appointed third party specialist to conduct load surveys and movement supervision. 18.16.7 Training
The EPCM contractor may assist AMC with the training of operations and maintenance personnel and assist with the development of training packages for the local workforce. This will ensure a smooth transition from construction to operations.
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19.
INTERPRETATION AND CONCLUSIONS
Scoping studies have been completed into the possible development of a 3 Mt/a CIL circuit to reprocess heap leach tailings and any remaining oxide gold resources, and a 5 Mt/a flotation circuit to treat VMS mineralisation. Resource modelling and mining studies have been undertaken to investigate extraction methods and develop mining schedules to supply feed to these plants. A preliminary geotechnical investigation has been undertaken to support the proposed mining methods and mine designs for the VMS deposits which have not previously been mined. A high-level environmental review indicates that acceptable environmental outcomes should be achievable, assuming standard engineering design and operating practices are employed. The success of the proposed expansion projects rely on two key pieces of infrastructure, namely a 77 km long power line connecting to the National Grid and a 165 km pipeline bringing water from the Nile River. Discussions have commenced with the relevant authorities regarding access to power and water. Capital and operating costs have been developed for the mines, both process plants and related infrastructure, with the assumption that the power line and water pipeline are funded as part of the CIL project. A project schedule has been developed showing production starting in 2013 for the CIL plant and 2015 for the VMS concentrator. This schedule allows for completion of feasibility studies followed by plant design, the delayed start to the VMS concentrator reflecting the less advanced status of this phase in terms of resource definition, geotechnical studies, mine design, process testwork and mine development. Financial modelling indicates that both the CIL and VMS phases of the expansion project are economically feasible, with NPVs of $149.8 M and $122.7 M, respectively. Base case metal prices were $950/oz for gold and $2.19/lb for copper. However, it must be noted that the bulk of the resources contributing to the VMS mine schedule are classified as Inferred. Consequently, there is a high degree of uncertainty in these resources, and their use in economic modelling is not recommended under NI 43-101. An exemption has been provided by the regulatory authorities, allowing use of Inferred resources in this instance, but the Inferred Resources are too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves. It cannot be assumed that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. The financial outcomes are particularly sensitive to metal prices: a 10% increase in either gold or copper price increases overall NPV by approximately $80-90 M.
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Plant throughput is at full capacity for only five years in both cases, and significant economic upside exists if additional reserves can be located. VMS mineralisation is known to exist at the base of six oxide gold pits, of which only two have been drilled sufficiently to allow resources to be modelled for use in this study. Of these, the resources at Hassai South have been modelled using large blocks with partial mineralisation estimated within these blocks. In order to undertake underground mining studies, the mineralisation has been regularised and the associated reduction in grade has a significant impact on project economics. It is believed that improvements in the resource estimation/modelling of the Hassai South underground and Hadal Awatib open pit deposits would assist in more accurate spatial definition of the mineralisation and mining-related dilution, and in turn may have the effect of increasing the schedule grades. It should also be noted, however, that there will likely be a drop in the overall mining inventory tonnes, as contained metal would not be affected. Additional resources are expected to be identified at the other known VMS locations, as well as from testing the numerous other electrical conductors identified in the district, with the potential to allow full production to be maintained for several more years.
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20. 20.1
ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES BACKGROUND
The AMC mining operation started in 1991. Since then, more than 2.3 Moz of gold have been produced from 12 pits distributed over an area of 800 km. The AMC licences essentially cover the entire mining district, which consists of a Proterozoic greenstone belt hosting gold-enriched VMS deposits and orogenic gold in quartz structures. All deposits discovered up until now were discovered by surface work. Until 2004, only SBR-type deposits (ie. supergene enrichment of gold-enriched VMS deposits) had been mined and processed. A new grinding circuit was introduced in 2007 to treat gold more effectively from quartz vein mineralisation, which now forms the bulk of the feed. Figure 20.1 shows the annual tonnage of ore and waste mined, Figure 20.2 the average mine and plant determined head grade of cyanidable gold, and Figure 20.3 the annual gold production.
Figure 20.1 Annual Mining Tonnages (Ore and Waste)
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000 t 8,000,000
ORE MINED WASTE
6,000,000
4,000,000
2,000,000
0 1991 + 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
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Figure 20.2 Average Head Grade, Mine and Plant
25
20
15
plant mine
g/t
10 5 0 1991 + 1993 1992 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Figure 20.3 Annual Gold Production (kg)
6,000.0
5,000.0
4,000.0
kg 3,000.0
2,000.0
1,000.0
0.0 1991 + 1992 1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Summary statistics of production activity since start-up in 1992 are indicated in Table 20.1.
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Mining in the Ariab Mining District has been by open pit. The different types of ores mined have comprised SBR, sulphated SBR frequently encountered at the bottom of the supergene enrichment zone and close to the underlying VMS, and quartz ore from the Kamoeb deposit. All material is processed in a crushing plant, the quartz material undergoing additional milling, before being mixed with cement in an agglomerator and stacked on heaps. Gold is recovered by conventional heap leaching, due to constraints in the availability of large quantities of water. Despite declining head grades, annual gold output remained at 4-6 t since 1996 through a steady increase in crushing and processing capacity, but decreased to approximately 2 t by 2009. Gold recovery has averaged 80%, but has decreased slightly, particularly since 2003.
Table 20.1 AMC Production History Year Waste tonnes 1991/2 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Total 834 630 2 594 550 3 116 970 4 965 530 9 188 507 11 170 830 11 045 460 13 305 145 14 522 940 15 127 500 15 179 000 14 606 541 13 117 600 9 396 000 9 266 000 5 746 410 3 703 000 2 999 405 15 9886018 Ore Mined tonnes 113 385 135 607 271 016 277 967 432 794 574 994 515 887 583 401 519 908 1 046 160 993 450 1 034 215 851 102 1 530 772 1 017 327 541 747 458 776 177 367 11 075 875 Cyan. Au (g/t) 11.16 15.50 13.28 15.05 13.95 10.32 12.03 10.62 11.23 8.14 5.85 7.21 6.04 5.78 5.24 4.58 4.07 3.11 5.70 97 240 127 056 168 435 203 349 383 910 432 403 651 133 702 776 763 515 754 034 800 258 920 000 915 864 1 038 793 937 467 888 621 809 275 725 303 11 319 432 Ore Processed tonnes Cyan. Au (g/t) 12.18 15.53 18.16 19.92 15.15 12.43 10.92 10.30 8.80 8.49 8.21 6.99 6.22 5.78 4.43 4.06 4.07 3.78 7.73 Gold Recovered Au (Kg) 982.0 1 862.7 2 679.6 3 750.4 4 571.2 4 556.9 5 671.0 5 565.7 5 772.9 5 415.9 5 263.9 5 172.9 4 281.0 4 738.6 3 156.3 2 703.0 2 276.0 1 921.8 70 342.0 Recovery (%) 83 94 88 93 77 85 80 77 86 85 80 80 75 79 76 75 69 70 80
20.2 20.2.1
MINING Overview
A flow sheet of the mining operation is presented in Figure 20.4. The fleet of mining equipment needed to run the mine (see mobile equipment list in Table 20.2) requires an integrated 200 km road system that links all the pits with the central processing plant. Formerly each pit had its own workshop, but with concentration of mining activity on smaller and shorter life quarries, only mobile lubrication and light maintenance are carried-out in the pits, all heavy mechanical repair work being carried out in the central workshop at Hassai camp site. Actively mined open pits at the end of 2009 are Hassai North, Hadal Awatib Link and Kamoeb.
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The Hassai Mine Envisaged Business Pla NI 43-101 Preliminary Assessment Repo
Figure 20.4 Diagrammatic Representation of AMCs Mining Flow Sheet
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Table 20.2 AMC Mobile Equipment Fleet as at 31/12/2009 Equipment 60-tonne dump truck 40-tonne dump truck 20-tonne truck 20-tonne trucks Excavator Excavator Excavator Excavator Wheel loader Wheel loader Wheel loader Wheel loader Drill Drill Drill Bull dozer Bull dozer Motor Graders Motor Graders Number 11 5 3 12 2 4 1 3 2 4 1 3 1 2 3 3 4 4 1 Make Caterpillar 775 D Caterpillar 771 C, D TATRA rented locally, different make Liebherr R984 B Liebherr R974 B Caterpilar 385C Caterpillar 330 L, BL Caterpillar 428 B, C Caterpillar 966 F, G Caterpillar 988 G Liebher 530 Atlas Copco F7 Sandvik DP 1500 Tamrock Tam 700 Caterpillar D8 Caterpillar D10 Caterpillar 14H Caterpillar 16H 1 2 3 1 4 3 1 1 1 1 Mine 11 5 3 12 2 4 1 2 1 1 1 3 1 3 1 Plant Geology
20.2.2
Geotechnical Evaluation
Given the cost implications of the high strip ratio in most of the AMC mining operations, geotechnical evaluations of pit slopes are conducted periodically by external consultants for every major open pit. The mine staff subsequently follows up on their recommendations. Two stability incidents due to unnoticed faults have been recorded during operations. The last one was on the southern wall at the western end of the Hassai South open pit. The very dry climate facilitates rock cohesion, but does not prevent occasional breaches due to dilatation, in particular in winter when day and night temperatures show high contrasts. 20.2.3 Grade Control and Mining
Delineating the ore to be mined within each pit is the responsibility of the grade control department. Drilling plans for sampling are designed for each bench (presently 2.5 m high) with a drill spacing along and across the mineralisation adapted to the size and shape of each deposit (for instance 5x1.5 m in Hassa) as given by exploration and other pre-mining data. Grade control drilling is focused on the mineralisation, but extends into barren wallrocks. On each bench plan, a series of control points spaced 20-30 m apart are surveyed by the survey department, on which the sampling grid is laid out by the grade control geologists. Drilling and sampling is conducted by the blast drill crew. After assaying at the mine laboratory, the grade control geologists delineate the ore and waste limits using SERMINE software.
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The ore-waste boundary is first placed half way between mineralised and barren sampling holes, then refined and smoothed using all locally available geological data. Ore volumes are defined by either assigning a unit volume to each sample, or having the outlines digitised. Densities are derived from exploration data at every 10 to 25 m. Ore block grades are calculated by averaging sample data within the block, and ore tonnages by applying an average density to in situ ore volumes. The ore delineation plans (see principle on Figure 20.5), on which low grade, medium grade and high grade ore limits are assigned different colours, and acidic ores are identified, are handed over to the mine captains and to the surveyors, for physical marking out with coloured rocks on the pit floor before blast hole drilling and after blasting (ore is generally blasted and excavated before waste).
Figure 20.5 Illustration of In Situ Grade Control (Figures are Average Gold Grades Measured on a 2.5 m Sub-bench)
Such plans are also used to forecast mine production, as well as ore being stockpiled close to the mines before shipment to the plant. These tonnages are called mined or geological. Mine production, including new additions to the ore stockpiles as well as direct shipments to the plant, is calculated (on an undiluted basis) as follows: From the grade control sampling map, the ore/waste boundary is drawn according to the grade of the sample holes (at a grid of 5x2.5 m by 2.5 m depth, depending on the deposit). Each area is being classified according to grade: HGO : high grade ore, average grade > 10 g/t MGO : medium grade ore, average grade between 5 and 10 g/t GLGO : good low grade, average grade between 4 and 5 g/t BLGO : bad low grade, average between 1.5 and 4 g/t.
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Tonnage is calculated by the number of loaded dumpers. Grade is the arithmetic average grade of each area. In addition, sulphate-bearing SBR material, which requires washing or even thermal treatment before being blended with other material, is identified. In general, there is little, if any, high grade ore left in the stockpile since this is immediately shipped, together with medium grade ore, to the plant. In the field, each heap is identified by a sign, indicating origin, ore class and average grade, this being readily traceable in the database. 20.2.3.1 Geology-Mine Reconciliation
Differences between initial reserve estimates for each 10 m bench are compared to production data as calculated from grade control maps, each time a given 10 m bench has been mined out. Table 20.3 illustrates the results of the comparison between geological (reserve) and production estimates for depleted deposits.
Table 20.3 Geology Mine Reconciliation for Depleted Deposits Exploration Estimate Depleted Deposit Baderuk Adassedakh Taladeirut Oderuk Baderuk North Hadayamet Dim Dim 5 Hadal Awatib West, North Hadal Awatib East A+B Oderuk West Ganaet Weighted Total Au g/t 11.7 17.6 14.4 10.0 5.1 7.2 9.7 19.6 9.9 7.5 6.8 13.0 Contained Au (kg) 2 110 3 046 3 538 6 978 132 12 013 567 17 865 13 096 216 342 59 771 10.2 12.9 13.6 7.7 4.2 6.5 6.2 13.7 9.3 6.8 6.3 10.1 Pre-production Mining Estimate Au g/t Contained Au (kg) 3 084 4 111 3 322 6 798 120 15 551 431 17 861 18 917 292 674 70 195 -13 -27 -6 -23 -18 -10 -36 -30 -6 -9 -8 -22 Au Mining v Exploration (%) Contained Au (kg) 46 35 -6 -3 -9 29 -24 0 44 35 97 17
Results show that, historically, geological estimations of reserves based on exploration data from the SBR deposits tend to overestimate mined grade and underestimate the tonnage to an even greater degree, resulting in an overall conservative evaluation with respect to contained metal. Apart from estimation uncertainties in the original geological reserve estimate, such discrepancies are for a great part due to dilution.
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20.2.3.2
Dilution
Geological ore tons are based on a strictly defined in situ volume multiplied by an estimated density. Mining processes, however, do not adhere strictly to the ore limits defined by the grade control department. Ore is usually excavated using an excavator with a 2.5 to 2.8 m wide bucket, a size that may not be adapted to the width of the mineralisation being mined. This can lead to excavating significantly more material than initially measured and planned, especially when the mineralisation is narrow, a more and more common situation in the pits AMC is now mining. When the mineralisation is thick, the effect is significantly lower than when the mineralisation is particularly thin. The percentage, ranging from 8-30%, varies from deposit to deposit, and in general is difficult to calculate. An additional factor of dilution is the softness of the ore/waste boundaries leading locally to sloughs. Dilution adds waste or sub-economic material to the ore mined and sent to the stockpile and subsequently processed by the plant. Except for errors in delineating the actual ore/waste boundaries, dilution always adds material, and this effect always goes in the same direction. Due to the different pits and ore types, dilution is not consistent in all operations, but averages approximately 15% on an annual basis. 20.3 20.3.1 BENEFICIATION PLANT Overview
Gold is extracted at the beneficiation plant through heap leaching. A circuit designed to treat SBR ore has been in use for the last 19 years and has been expanded several times by adding several crushers and hoppers. An additional quartz circuit was implemented in 2005 to handle the Kamoeb South ore through a ball mill, silo and screens adapted to ground (800 m) material. This circuit has experienced some difficulty in handling the very fine mineralised clayey schist that is inevitably extracted along with the clean quartz vein material. The circuit is being fine-tuned (and was modified during 2007 with the addition of an SBR/Quartz ore mixer) and integrated into the SBR circuit. Both materials are then mixed with cement and lime (for acidic material) and fed into two agglomerators, where a cyanide solution is added as the moistening agent. Current crushing and milling activities run at about 2500 t/d. Individual heaps are 7 m high x 45x200 m. The annual throughput of ore being leached is 0.7 Mt (2009 figure). The heap is leached with sodium cyanide in three distinct cycles for a total duration of three months. The resulting pregnant solution is sent to an absorption-desorption (ADR) unit where the gold is captured on activated carbon. Metallurgical recoveries average approximately 72%. Gold smelting is performed on-site and the 25 kg dor bars (gold 62%, silver 30%; copper and iron impurities) are sent to a refiner.
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20.3.2
Process Flow Sheets
Figure 20.6 and Figure 20.7 on the following pages describe the process flow sheet. SBR ores are mined and are sent to the SBR line where the material is sent to a series of crushers and screens to be crushed at <12.5 mm. Quartz material is sent to the quartz line through a series of two crushers and a screen to a silo (size of the feed <8 mm), a series of three Mogensen screens and a ball mill to be ground to <800 m. The two types of ores are blended in an ore mixer, then cement and lime are added, and the product sent to one of two agglomerators where a cyanide solution is added. The agglomerated material is sent via land conveyors to a stacker and piled on the leach pads. The method used is the traditional heap leach process including one cycle with cyanide solution (0.35 g/L), one cycle with lower cyanide concentration (0.2 g/L) solution and one washing cycle with industrial water. All solutions are collected in ponds. The pregnant solution goes to the self-contained ADR unit, where the gold is stripped and won in an electrolytic cell. After smelting, the dor bars are temporarily kept in the gold room before shipment.
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Figure 20.6 AMC Gold Plant: Crushing/Milling Section Flow Sheet
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Figure 20.7 AMC Gold Plant: Leaching Section Flow Sheet
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20.3.3
Reagents
The description and quantities of the principal reagents used in the operation are listed in Table 20.4.
Table 20.4 Reagents Used at the Hassai Heap Leach Plant Cement Lime Cyanide Water 10 kg/ t ore 0-20 kg/t ore 250 g/t ore 300 L/t ore
Sulphated, acidic material of pH = 1.5 is found near the redox zone at all SBR deposits. It has been mainly stockpiled near the waste dumps in Hadal Awatib and in Hadayamet. The acid ore of Hadal Awatib is pre-treated by washing to dissolve the iron sulphates that impede the proper circulation of percolating fluids. The ore is generally spread on the waste dump in a 1.5 m thick layer and sprinkled with water in the amount of 0.8 to 1 m3/t. This static washing method is, however, unsuitable for the highly acidic ores of Hadayamet which are gradually fed in small quantities and with the addition of lime (to the order of 20 kg/t and more) to the batch of neutral ores (SBR and/or quartz). 20.3.4 Gold Reconciliation at the Plant
Internal reconciliation at the plant is performed on a daily basis, with the processing of the data for the mass balance, the follow-up of the leaching recovery curve and the evaluation of the final recovery of the heap. The daily dry tonnage and computed grades for material going onto the heap are gathered as input data. Tonnage is measured by a belt conveyor balance, and corrected according to data from the weighbridge and for humidity, lime and cement added to the conveyor. Sampling is done in a bin chute leading to the agglomerator using an automatic sampler. At regular time intervals, a slit runs from one side of the bin to the other at a constant speed and collects 300-500 kg of material per day (d100 = 16 mm, d90 = 12.5 mm) in a minimum of two samples. Each sample passes through a laboratory cone crusher, and is then split and assayed. A gold balance is managed daily for each active heap, and provides an individualised recovery for each heap at the end of the day. Solutions percolating through any heap are assayed each day (pregnant and sterile solution) and the volume is measured. Dor gold and gold adsorbed on carbon are further reconciled with the gold in solution entering the ADR circuit. 20.3.5 Mine/Plant Gold Reconciliation
Reconciliation of gold between the mine and the plant is not easy due to the blending of different sources of ore at the plant site. Ore transported to the plant is weighed on a weighbridge. The mine tonnage is then readjusted according to this weight. The ore is sampled in a systematic way during its passage to the plant, in order to calculate head grade. Mine production is then corrected when the exact quantity of gold is known, after its passage to the plant.
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20.4
TAILINGS AND WASTE MANAGEMENT
The waste to ore ratio ranges from 7 to 39 depending on the pit. Most of the mined material is waste which amounts to more than 160 Mt in total. Waste dumps are created near every pit to store sterile material. Organic soil is not produced in the desert environment and is thus not included in the stockpiles. One of the waste dumps at Hadal Awatib acts as a blanket for washing sulphated ore. Tailings amount to approximately 11 Mt and are kept at the plant site. Earlier tailings were removed and stored in areas not far from the present active heaps. The historical metallurgical balance reveals that the average grade of the tailings may reach 1.57 g/t cyanidable Au. The company plans to retreat these tailings at the end of the mine life and is investigating suitable gold recovery processes. In all SBR pits, gold concentration drops in the massive sulphide near the redox zone, effectively defining the bottom of the ore zone. However, the few intersections into this sulphide zone show a potential for profitable base metal extraction given the current base metal prices. The reactivation of some of these pits might be worth considering following a proper assessment of this potential. 20.5 20.5.1 INFRASTRUCTURE Buildings and Mine Camp
The Hassai mine camp is approximately 3 km from the processing plant and accommodates about 600 personnel (expatriates and locals). It includes accommodation, dining halls, a bakery and local market, and recreational facilities. An on-site communication tower allows cellular phone communication through three mobile phone access providers and Internet access. Seventeen diesel generators (totalling 5470 kVa) supply electricity to the plant and facilities. 20.5.2 Other Offices
The head office building in Khartoum houses approximately 40 personnel, servicing general management, financial control and local purchasing departments. AMC also has a small office in Port Sudan for seven personnel who are responsible for coordinating sea freight shipments, including the purchasing and transportation of supplies for Hassai (food, equipment, etc.). 20.5.3 Logistics
Transportation from Port Sudan to the mine site is carried out by a combination of sub-contractors and company-owned trucks. The distance is approximately 200 km, and about 20 000 t of consumables are transported each year. Airfreight cargo service, is provided through Lufthansa, Emirates, Egypt Air and other through their scheduled flights. A Twin Otter airplane owned by AMC is used for limited personnel transportation and emergency purposes.
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20.5.4
Water Supply
Water supply is a key issue given the desert climate at the mine area. Moreover, the basement geology in the Hassai region consists of granite and volcanic rocks and there is therefore no sizable underground aquifer. Total water consumption in 2009 was around 430 000 m. The following steps have been implemented to deal with the water supply situation: Fresh as well as saline water is sourced from a series of wells located at distances up to 100 km from the Hassai plant. Basins (hafirs) protected by earth dams have been dug to store run-off rainwater; these basins now have a total capacity of over 340 000 m3. Recycled sewage water is being used in the leach process since 1996.
Significant rainfalls in recent years greatly increased the water reserves. AMC estimates that current water reserves (underground) are sufficient to sustain production for at least two more years without any further precipitation. Water supply sources are shown in Figure 20.8. Note: the water consumption per tonne of ore processed has increased over the years, reflecting the need for water to wash some acidic material, and also the increase of water consumption due to an increasing local population around the site.
Figure 20.8 Water Sources 2009
Recycledwater 2%
Hafirswater 19% Recycledwater 8% Freshwater wells 71%
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20.6
SOCIAL PROGRAM
The Red Sea Development Fund was formally established in 1998. The funds are mostly spent on the operating costs of the local Bir Ajam village, as well as targeted donations and capital projects in the Red Sea Hills region. They are presently administered by the Red Sea Hills region for sustainable development projects. Funding was $200 000 in 2004 and $250 000 in 2005 and the years after. AMC directly employs about 600 persons from the nearby region, and it is estimated that the company contributes to the welfare of all inhabitants in a area extending 120 km from the mine site. 20.7 FINANCIAL ANALYSIS
Table 20.5 shows the analysis of the current AMC operations. Note the values are in US Dollars for 100% of AMC. The gold price assumption is $950/oz as used in other areas of this report. NPV and discounted cashflow are based on 5% discounting as used in other sections of this report.
Table 20.5 Cashflow Analysis of Current Operation 2010 Physical Data Tonnes of Ore Mined Tonnes of waste Tonnes milled Gold Grade (g/t) Recovery (%) Gold Production (oz) Profit and Loss Statement (in '000 US$) Revenues Cost of Sales Mining and Milling Costs Mining Costs Haulage Costs Milling cost G&A and Other Costs Office / Administration Government Royalties Stock Variation Gross Margin Depreciation and Amortisation of capital assets Gross Margin Cominor Mine Operating Income Income tax Net Earnings (Loss) 0 64 126 40 605 16 978 710 22 917 23 521 9 241 4 770 9 510 4 016 13 198 80 -9 101 -1 365 -9 101 0 48 110 34 276 14 036 969 19 271 13 834 9 241 4 860 -267 21 314 11 098 426 10 643 1 596 9 046 0 47 085 30 117 9 440 833 19 843 16 969 9 241 3 848 3 879 7 892 11 428 158 -3 377 -507 -3 377 0 51 882 26 534 5 658 465 20 411 25 348 9 241 6 414 9 693 39 751 10 223 795 30 323 4 548 25 775 19 892 22 815 72 974 45 946 1459 28 487 4 273 22 342 284 177 211 203 131 532 46 113 2 977 82 442 79 671 474 695 5 694 566 751 376 4.22 70% 71 728 643 272 4 669 373 631 835 4.96 73% 73 079 537 740 3 299 665 650 598 3.75 74% 57 871 300 000 2 000 000 582 000 6.92 74% 96 456 1 955 706 15 663 604 2 615 808 4.88 73% 299 134 2011 2012 2013 Tot / Avg
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Table 20.5 Cashflow Analysis of Current Operation 2010 Cash Flow Statement (In '000 USD) Cash flows from operating activities Cash flows from investing activities Non-Plant Capital Expenditures Washing Plant for Acidic SBR Water line Cash flows from financing activities Free Cash Flow to Equity NPV @ 5% Discounting 0 4 540 35 684 0 17 998 13 606 9 066 9 066 19 878 1 880 1 380 500 11 929 35 000 0 10 000 25 000 0 -23 071 0 45 690 45 690 0 0 0 91 103 45 946 10 446 10 500 25 000 0 45 157 2011 2012 2013 Tot / Avg
While the current planned operations generate a substantial NPV @ 5% discounting, options to better utilise the water pipeline investment led to the proposed business plan including a CIL Plant that is a subject of this report. The current operation is robust in the current market environment with the NPV dropping to zero only below a gold price of $750/oz. Gold prices shown in Figure 20.9 are based on variances of 10% increments from -30% to +30%, and are not suggestive of gold price projections. In October 2010, the spot gold price exceeded $1350/oz.
Figure 20.9 Sensitivity Analysis Current Hassai Operation
100,000
80,000
GoldPrice OperatingCost(variance)
NPV@5%,USD,000
60,000
30% 20%
40,000
+10
20,000
10%
+20 +30
0 665 20,000 760 855 950 1045 GoldPrice,USD/oz 1140 1235
Cash flow and NPV are less sensitive to operating cost variances than to gold price/gold production variances (Figure 20.9). Note that the NPV is zero above cost increases of 29%. Within the accuracy of the current operating cost estimates, the project is quite robust.
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21.
RECOMMENDATIONS
With very few exceptions, work to-date has been completed to a scoping level, and significant additional studies are required in all disciplines in order to confirm numerous assumptions and provide a sound basis for developing the CIL and/or VMS concentrator options to a definitive FS level. 21.1 CIL PHASE
For the CIL phase, La Mancha has approved a budget of A$1.69 M in order to complete feasibility study work. The program is due for completion in the second quarter of 2011, and comprises: Upgrading of Inferred resources of heap leach tailings to the Indicated category through development of an improved metallurgical balance. Additional mining studies for both the open pit and stockpile and tailings reclaim activities, in order to refine the schedule, capital and operating costs. Further metallurgical testwork on representative samples in order to define flowsheets and design criteria at a feasibility level. This will require collection of samples representative of the various domains, followed by comminution leaching and tailings testwork. Tailings disposal: selection of the optimum disposal site is required, followed by TSF and tailings handling design. Plant engineering to a FS level. Infrastructure: confirmation of requirements, followed by FS-level design, specifically for the water pipeline, HT power line and accommodation village. Environmental studies, and initiation of permitting as required, to support the final designs for mine, plant and infrastructure. Project implementation: development of strategy and schedule for project development. Capital and operating cost estimation for final FS designs.
La Mancha intends to undertake the FS work in two stages, namely preliminary and final feasibility studies, and to this end has approved programs costed at A$0.907 M and A$0.781 M, respectively. Additional design of the water pipeline has been awarded to Sudanese for Construction and Oil Services at an estimated cost of US$ 250 000. 21.2 VMS PHASE
The VMS phase is at a much earlier stage of development, with a poorer understanding of resource, mining, processing and cost parameters, which leads to a lower confidence in the economics of the concentrator phase. At this time, the highest priority is to expand and increase confidence in the resources, which will, inter alia allow for an improved understanding of mining options. Consequently, La Mancha has set aside a budget of $18 M for the VMS phase in order to undertake a drilling program of 100 000 m designed to: Upgrade existing Inferred Resources of VMS material to Indicated and Measured status Develop VMS resources beneath the exhausted gold open pit at Hadayamet, 30 km east of Hassai.
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22. 22.1
REFERENCES GEOLOGY AND RESOURCES
Arethuse Geology, 2009. Hadal Awatib East VMS Cu-Au Resources Estimates. Independent report to AMC, October 2009. Barrie, C. T., and Hannington, M. D., 1999. Volcanic-associated Massive Sulphide Deposits: Processes and Examples in Modern and Ancient Settings: Introduction: In Reviews in Economic Geology Volume 8: Volcanic-Associated Massive Sulphide Deposits: Processes and Examples in Modern and Ancient Settings, Barrie, C. T., and Hannington, M. D., editors, p. 1-11. CSA Global (UK), 2010. Hassai Heap Leach Remnant Resources Report #R230.2010, dated 16 September 2010. Internal company report. Abu Fatima, M.A. (2006). Metallogenic genesis and geotechnic evaluation of the polymetallic massive sulphide and associated gold deposits at Arib-Arbaat Belt, Red Sea Hills, NE Sudan. PhD. Thesis, Geologie et Gestion des Ressources Minerales et Energetiques, Universite Henri Poincare, Nancy 1, France. La Mancha Resources Inc., January 2008. Hassai Mine, Sudan, NI 43-101 Technical Report. La Mancha Resources Inc., October 2009. Estimates, NI 43-101 Technical Report. Hassa South Cu-Au VMS Deposit, Sudan, Resource
La Mancha Resources Inc., December 2009. Hadal Awatib East Cu-Au VMS Deposit, Sudan, Resource Estimates, NI 43-101 Technical Report. Monthel J (2007). AMC Geology Exploration activity from 08/2005 to 03/2007. results and assessments. Final Report, Internal report AMC. 22.2 GEOTECHNICAL
ANTEA 1999. Open Pits of Hadayamet and Hadal Auatib East (Sudan): Determination of the slopes of the pit walls. Internal report for Ariab Mining Company (AMC) December, 1999. Barton, N. R., Lien, R. and Lunde, J., 1974. Engineering Classification of Rock Masses for the Design of Tunnel Support, Rock Mech. 6(4), 189-239. Bieniawski, Z.T., 1989. Engineering rock mass classifications. New York: Wiley. Hoek, E., P.K. Kaiser and W.F. Bawden, 1995. Support of Underground Excavations in Hard Rock. Balkema. pp. 215. Hoek, E and Brown, E.T., 1980. Underground Excavations in Rock. Institute of Mining and Metallurgy, London. INTECSA-INARSA, 2002. Geological and Geotechnical Study and Final Slope Design at Hadayamet Open Pit. Internal report for Ariab Mining Company (AMC) May, 2002. Laubscher, D.H. 1990. A geomechanics classification system for the rating of rock mass in mining. J.S.Afr.Inst. Min. Metall. Vol. 90, no 10. pp 257-273.
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23.
DATE AND SIGNATURE PAGE Hassai Mine CIL Project Hassai Mine CIL Project NI 43-101 Preliminary Assessment Report Red Sea State, Sudan
Project Name: Title: Location: Effective Dates:
Effective Date of Technical Report: Effective Date of Mineral Reserves: Effective Date of Mineral Resources:
22 October 2010 31 December 2009 31 August 2010
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CERTIFICATE OF QUALIFIED PERSON Adam Coulson
I, Adam Coulson, do hereby certify that: I am the Senior Rock Mechanics Engineer for AMEC, 160 Traders Boulevard East, Suite 110, Mississauga, Ontario, L4Z 3K7 Canada. I graduated BEng, from Camborne School of Mines, UK in 1990, MSc. (Eng) from Queens University, Canada in 1996, and PhD from the University of Toronto, Canada in 2009. I am a Professional Engineer and Member of the Canadian Institute of Mining and Metallurgy. I have worked as an Engineer for a total of 20 years since my graduation from university. I have read the definition of qualified person set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43 101) and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of NI 43-101. I am responsible for the preparation of those parts of the Technical Report titled The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator), Red Sea State, Sudan Revision 0, dated 22 October, 2010 (the Technical Report) relating to geotechnical inputs to the VMS mining studies. I visited the site for three days in March 2010. I have read the relevant sections of the Technical Report and, as at the date of this certificate, to the best of my knowledge, information and belief, those sections of the Technical Report contain all scientific and technical information that is required to be disclosed to make that part of the Technical Report not misleading. I am independent of the issuer applying all of the tests in section 1.4 of NI 43-101. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.
Dated this 22nd Day of October, 2010
_______________________________ (Signed) Adam Coulson, P.Eng., PhD., CIMM Senior Rock Mechanics Engineer AMEC
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Certificate of Qualified Person - William F. Plyley
I, William F. Plyley, do hereby certify that:
I am the Chief Operating Officer of La Mancha Resources Inc., with an office at Level 1, 12 St Georges Terrace, WA 6000, Australia. I graduated from the University of Nevada, Reno (Mackay School of Mines) with a Metallurgical Engineering Degree, BSc. in 1982. I am a member of The Australasian Institute of Mining and Metallurgy. I have worked in the mining industry as a metallurgical engineer and in general management positions for over 35 years. I have read the definition of qualified person set out in National Instrument 43-101 of the Canadian Securities Administrators (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I am a qualified person for the purposes of NI 43-101. My last visit to the Hassai Mine site was on the 10th of October 2010 for a duration of 3 days. I am responsible for supervising the compilation and overall preparation of the technical report entitled The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator), Red Sea State, Sudan NI 43-101 Technical Report (the Technical Report), dated 22 October 2010, relating to the Hassa Mine in Sudan, in which La Mancha Resources Inc. owns an indirect 40% interest. In particular I am responsible for those parts of the Technical Report relating to adjacent properties, mineral processing for the heap leach operation, projected recoveries and the recovery schedule for the CIL circuit, market, taxes and royalties, G&A and other operating costs, project implementation, economic analysis and additional information for operating properties. As Managing Director of La Mancha Resources Australia, I have been responsible for the Hassai mine since September of 2006. Consequently, I am not independent of the issuer applying thetest in section 1. of NI 43-101. I have read the NI 43-101 and Form NI 43-101F1. The parts of the Technical Report to which I have contributed have been prepared in compliance with NI 43-101 and NI 43-101F1. I have read the Technical Report, and, 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.
Dated, this 22nd day of October 2010
(signed) William Plyley (MAusIMM) Chief Operating Officer La Mancha Resources Inc.
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CERTIFICATE OF QUALIFIED PERSON Clayton Reeves I, Clayton Reeves, (Member of the South African Institute of Mining and Metallurgy), do hereby certify that: I am Principal Mine Engineer for CSA Global (UK), 2 Peel House, Barttelot road, Horsham RH12 1DE, United Kingdom. I graduated with a B.Sc. honours degree in Engineering (Mining) from the University of the Witwatersrand, South Africa in 1997. I am a Member of the South African Institute of Mining and Metallurgy. I have worked as a Mine Engineer for a total of 13 years since my graduation from university. I have read the definition of qualified person set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of NI 43-101. I am responsible for the preparation of those parts of the Technical Report titled The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator), Red Sea State, Sudan Revision 0, dated 22 October, 2010 (the Technical Report) relating to mine reserves, mine design, costing and scheduling of material to supply the continuing heap leach and proposed CIL plant operations, as contained in Section 18 and as summarised in Section 1 of the Technical Report. I have visited the Hassai Mine property several times between June 2009 and August 2010, for a cumulative total of over seven weeks on site. I have previously undertaken work for La Mancha Resources for the property that is the subject of this Technical Report. I have read the relevant sections of the Technical Report and, as at the date of this certificate, to the best of my knowledge, information and belief, those sections of the Technical Report contain all scientific and technical information that is required to be disclosed to make that part of the Technical Report not misleading. I am independent of the issuer applying all of the tests in section 1.4 of NI 43-101. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.

________________________________ (Signed)
Clayton Reeves, B.Sc., Member, South African Institute of Mining and Metallurgy Principal Mine Engineer CSA Global
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CERTIFICATE OF QUALIFIED PERSON Dean David I, Dean David, do hereby certify that:
I am a Process Consultant for AMEC, Level 14, 140 St Georges Terrace, Perth, Western Australia, 6000. I graduated with a Bachelor of Applied Science (Metallurgy) from the South Australian Institute of technology (now the University of South Australia), Australia in 1982. I am a Fellow of the Australasian Institute of Mining and Metallurgy, membership number 102351 I have worked as a Process Engineer for a total of 28 years since my graduation from university. I have read the definition of qualified person set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant3 work experience, I fulfill the requirements to be a qualified person for the purposes of NI 43-101. I am responsible for the preparation of those parts of the Technical Report titled The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator), Red Sea State, Sudan Revision 0, dated 22 October, 2010 (the Technical Report) relating to the metallurgy, plant design and costing of the VMS concentrator. I visited the site in March 2010 for 2 days. I have read the relevant sections of the Technical Report and, as at the date of this certificate, to the best of my knowledge, information and belief, those sections of the Technical Report contain all scientific and technical information that is required to be disclosed to make that part of the Technical Report not misleading. I am independent of the issuer applying all of the tests in section 1.4 of NI 43-101. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.
________________________________ (Signed)
Dean David, FAusIMM Process Consultant AMEC

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CERTIFICATE OF QUALIFIED PERSON Graeme Baker I, Graeme Baker, do hereby certify that: I am Principal Mining Engineer for AMEC, Level 14, 140 St Georges Terrace, Perth, Western Australia, 6000. I graduated with a Bachelor of Engineering Degree in Mining (Honours) from the University of Ballarat, Australia in (1998). I am a Member of the Australasian Institute of Mining and Metallurgy. I have worked as a Mining Engineer for a total of 12 years since my graduation from university. I have read the definition of qualified person set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43101) and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of NI 43-101. I am responsible for the preparation of those parts of the Technical Report titled The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator), Red Sea State, Sudan Revision 0, dated 22 October, 2010 (the Technical Report) relating to open pit and underground mining of the Hadal Awatib and Hassai South VMS deposits, with the exclusion of geotechnical aspects which were provided by others. I have not visited the mine site. I have read the relevant sections of the Technical Report and, as at the date of this certificate, to the best of my knowledge, information and belief, those sections of the Technical Report contain all scientific and technical information that is required to be disclosed to make that part of the Technical Report not misleading. I am independent of the issuer applying all of the tests in section 1.4 of NI 43-101. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.
________________________________ (Signed)
Graeme Baker BEng. (Mining), MAusIMM Principal Mining Engineer AMEC Minproc Limited
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CERTIFICATE OF QUALIFIED PERSON Ian Thomas I, Ian Thomas, do hereby certify that: I am employed as Process Consultant by Sedgman Ltd, Level 4, 170 Burswood Road, Burswood, Western Australia, 6100. I graduated with a Bachelor of Applied Science in Metallurgy from Bendigo College of Advanced Education (now Latrobe University), Australia in 1979. I am a Member of the Australasian Institute of Mining and Metallurgy (#102227). I have worked as a Metallurgist for a total of 31 years since my graduation from university. I have read the definition of qualified person set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43101) and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of NI 43-101. I am responsible for the preparation of those parts of the Technical Report titled The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator), Red Sea State, Sudan Revision 0, dated 22 October, 2010 (the Technical Report) relating to processing of gold mineralisation in the proposed CIL plant, including metallurgy, plant and infrastructure design, preliminary capital and operating costs, with the exception of the processed grades and recoveries. My last visit to the site and Khartoum was on the 6th of December 2007 for five days. I have previously undertaken work for La Mancha Resources for the property that is the subject of this Technical Report. I have read the relevant sections of the Technical Report and, as at the date of this certificate, to the best of my knowledge, information and belief, those sections of the Technical Report contain all scientific and technical information that is required to be disclosed to make that part of the Technical Report not misleading. I am independent of the issuer applying all of the tests in Section 1.4 of NI 43-101. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.
________________________________ (Signed) Ian Thomas, MAusIMM Process Consultant Sedgman Ltd

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CERTIFICATE OF QUALIFIED PERSON - Jean-Jacques Kachrillo I, Jean-Jacques Kachrillo, do hereby certify that: I am the Vice President of Exploration for La Mancha Resources Inc. I hold office at Tour Areva 1, place de la Coupole, Paris La Defense and have been employed as such since 2007. I graduated with a) Engineer Geologist of Ecole Nationale Superieure de Geologie et Prospection Miniere de Nancy (France) in 1974 b) 3rd cycle Thesis of Institut National Polytechnique de Nancy (INPL) in 1976. I am a registered Geoscientist with Ordre des Geologues du Quebec. I have worked as a geologist for a total of 33 years since my graduation from INPL. I have read the National Instrument 43-101 of the Canadian Securities Administrators (NI 43101). I certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I am a qualified person for the purposes of NI 43-101 and that the Technical Report has been prepared in compliance with this Instrument. My last visit to the Hassai Mine property was 22 August 2010 for a duration of 5 days. I am responsible for the preparation of those parts of the Technical Report entitled The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator) NI 43-101 Technical Report (the Technical Report), dated 22 October 2010, relating to the Hassa Mine in Sudan, in which La Mancha Resources Inc. owns an indirect 40% interest, concerning geology, mineralisation, exploration, drilling, sampling and sample preparation/assaying and sample security. As an employee of La Mancha Resources Inc., I am not independent of the issuer as defined in section 1.4 of National Instrument 43-101. I have read NI 43-101 and Form NI 43-101F1 and the Technical Report has been prepared in compliance with both. As of the date hereof, and, 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.
Dated, this 22nd day of October 2010

________________________________ (Signed) Jean-Jacques Kachrillo (Geoscientist with Ordre des Geologues du Quebec) Vice President, Exploration La Mancha Resources Inc.
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CERTIFICATE OF QUALIFIED PERSON Remi Bosc I, Remi Bosc, do hereby certify that: I am an Independent Consulting Geologist with Arethuse Geology Sdn Bhd, and reside and maintain an office at 7236 Rotan Tunggal, 27600 Raub, Pahang, Malaysia. I graduated from Ecole National Suprieure de Gologie de Nancy (France) as an Ingnieur Gologue in 1994, and of Ecole des Mines de Paris (France), as Mastere des grandes ecoles in Environmental Management in 2002. I am registered as European Geologist with the European Federation of Geologists N737. I have worked as a geologist in mineral exploration and mining since my graduation in 1994. I have been assessing and reporting resources in Industrial Minerals for 3 years from 2003 to 2006. I have participated in gold, industrial minerals and base metals resources assessment in Malaysia, the Middle East and Sudan since 2006. I have read the definition of qualified person set out in National Instrument 43-101 of the Canadian Securities Administrators (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be a qualified person. I am responsible for the preparation of those parts of the Technical Report titled The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator), Red Sea State, Sudan Revision 0, dated 22 October, 2010 (the Technical Report) relating to data verification and mineral resource estimation (other than for heap leach tailings resources generated post-2009), as contained in Sections 14 and 17, and as summarised in Section 1 of the Technical Report. My last visit to the site was on the 24th of August 2010 for eight days. I am independent of the issuer as defined in section 1.4 of National Instrument 43-101. I have not received, nor do I expect to receive, any interest, directly or indirectly, in the project or in securities from La Mancha Resources Inc., its affiliates or subsidiaries. I have read National Instrument 43-101 and Form 43-101F1 and the portions of the Technical Report for which I am responsible have been prepared in compliance with both. I am not aware of any material fact or material change with respect to the subject matter of this Technical Report that is not contained in the said report and the omission of which would make the Technical Report misleading; I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report. Dated this 22nd Day of October, 2010 ________________________________ (Signed) Remi Bosc, European Federation of Geologists N737 Independent Consulting Geologist Arethuse Geology Sdn Bhd
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CERTIFICATE OF QUALIFIED PERSON Simon McCracken I, Simon McCracken, do hereby certify that: I am Principal Geologist for CSA Global (UK), 2 Peel House, Barttelot Road, Horsham RH12 1DE, United Kingdom. I graduated with a BApp.Sc. from the Royal Melbourne Institute of Technology (Australia) in 1988. I am a Member of the Australian Institute of Geoscientists. I have worked as a Geologist for a total of 20 years since my graduation from university. I have read the definition of qualified person set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43101) and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of NI 43-101. I am responsible for the preparation of those parts of the Technical Report titled The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator), Red Sea State, Sudan Revision 0, dated 22 October, 2010 (the Technical Report) relating to Hassai heap leach tailings remnant resources, other than those reported in Section 17.4.1 by Arethuse Geology following drilling. My last visit to the site was on the 25th of August 2010 for 7 days. I have read the relevant sections of the Technical Report and, as at the date of this certificate,to the best of my knowledge, information and belief, those sections of the Technical Report contain all scientific and technical information that is required to be disclosed to make that part of the Technical Report not misleading. I am independent of the issuer applying all of the tests in section 1.4 of NI 43-101. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.
________________________________ (Signed) Simon McCracken BappSc MAIG Principal Consultant CSA Global (UK) LtdQualified Persons:
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24.
ILLUSTRATIONS
Illustrations are included within the body of the report as appropriate. A list of illustrations is included in the table of contents.
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25.
APPENDIX 1 RECENT HASSAI SOUTH, HADAL AWATIB AND KAMOEB DRILL INTERSECTIONS
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Hadal Awatib Long Holes from South Edge of Pit, 2007-2009 Hole ID HAE D251 From 113.00 145.00 203.00 260.50 303.00 321.00 HAE D252 147.60 171.50 203.00 242.30 323.40 HAE D253 HAE D254 HAE D255 HAE D256 HAE D257 HAE D258 135.00 180.00 221.65 178.65 206.40 224.50 153.00 194.00 232.43 202.00 211.70 245.50 18.00 14.00 10.78 24.78 23.35 5.30 21.00 49.65 1.14 0.29 1.68 0.90 1.05 1.29 2.20 1.56 0.24 2.66 0.67 1.79 0.59 3.03 0.41 0.77 1.55 0.66 0.67 0.66 2.07 0.14 0.25 1.09 12.28 1.71 12.73 6.51 9.48 9.02 12.32 10.63 168.90 171.90 3.00 0.68 0.33 0.37 7.90 174.90 189.00 14.10 0.68 2.28 1.52 5.57 179.06 214.00 To 138.00 163.90 221.50 285.00 306.00 341.00 163.10 196.00 229.30 303.00 387.75 199.00 234.00 Thickness (m) 25.00 18.90 18.50 24.50 3.00 20.00 109.90 15.50 24.50 26.30 60.70 64.35 191.35 19.94 20.00 39.94 Au (g/t) 0.54 1.03 1.59 1.28 1.58 1.19 1.11 1.29 1.24 1.00 1.81 1.63 1.52 0.36 1.07 0.72 Cu (%) 1.14 0.89 1.47 0.20 0.14 1.06 090 0.85 0.83 0.85 0.43 0.45 0.58 1.41 1.93 1.67 Zn (%) 0.79 1.63 0.52 1.56 1.78 2.11 1.33 1.92 1.08 1.14 0.21 0.22 0.59 0.35 0.56 0.45 Ag (g/t) 2.84 7.89 8.44 17.29 26.00 17.85 11.24 11.20 5.20 3.42 12.29 12.21 10.05 0.00 8.90 4.46
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Hadal Awatib Holes from Base of Pit, 2007-2009 Hole ID 194 195 196 197 198 199 200 201 202 203 204 205 206 207 From 10.00 13.20 9.00 45.00 7.00 2.00 11.00 28.00 22.00 18.00 4.00 14.00 1.00 12.00 1.00 16.00 6.00 21.00 21.70 30.50 6.50 17.00 To 16.00 20.20 39.00 50.00 38.00 3.00 23.00 37.00 42.00 31.00 10.00 46.00 12.00 47.00 9.50 24.00 18.00 50.00 26.66 44.60 17.00 50.00 Thickness (m) 6.00 7.00 30.00 5.00 31.00 1.00 12.00 9.00 20.00 13.00 6.00 32.00 11.00 35.00 8.50 8.00 12.00 29.00 4.96 14.10 10.50 33.00 Au (g/t) 0.76 1.78 2.03 1.74 3.48 2.11 2.79 0.52 0.96 1.28 13.11 1.14 5.58 1.45 17.10 0.46 >29,6 4.80 2.27 3.50 2.18 5.76 7.16 3.43 3.45 4.71 2.17 4.70 3.98 Cu (%) 2.62 2.81 2.83 3.24 2.92 3.00 2.78 3.97 2.69 2.48
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Hassai Long Holes 2007-2009 Hole ID HASS_D208 HASS_D209 From 144.70 184.45 225.00 225.00 251.00 HASS_D210 HASS_D211 HASS_D212 HASS_D213 HASS_D214 HASS_D215 HASS_D216 HASS_D217 HASS_D218 HASS_D219 HASS_D220 HASS_D221 HASS_D222 HASS D223 HASS_D224 HASS_D225 HASS_D226 HASS_D227 HASS_D228 HASS_D229 HASS_D230 HASS_D180 HASS_D180 HASS_D181 HASS_D181 HASS_D181 HASS_D182 HASS_D182 HASS_D182 HASS_D183 HASS_D183 172.75 193.55 146.4 154.96 170.75 146.74 158.25 167.35 157.93 180.9 179.75 198.5 147.05 155.35 178.58 149.28 158.5 178.78 158.93 187.03 7.00 4.95 0.65 0.39 7.83 2.54 0.25 11.43 1.00 6.13 626.00 222.50 341.00 375.00 267.80 325.00 372.00 230.90 248.00 304.65 339.00 260.00 289.00 248.40 212 299.00 177.00 662.00 234.80 358.00 380.00 288.00 367.00 393.00 246.00 263.00 333.30 342.70 282.60 292.00 261.50 214 309.20 181.50 36.00 12.30 17.00 5.00 20.20 42.00 21.00 15.10 15.00 28.65 3.70 22.60 3.00 13.10 2.00 10.20 4.50 274.70 289.00 265.00 358.00 296.30 311.20 275.50 392.50 21.60 22.20 10.50 34.50 185.00 216.00 247.50 To 150.00 191.00 255.00 233.00 255.00 203.00 221.00 261.20 Thickness (m) 5.30 6.55 30.00 8.00 4.00 18.00 5.00 13.70 Au (g/t) 1.91 1.20 1.46 1.36 2.00 1.51 1.25 1.14 Barren 2.41 2.01 2.25 1.77 0.60 1.25 1.90 0.93 1.78 3.11 1.51 2.61 1.55 1.68 1.94 2.03 2.10 2.35 0.89 0.91 1.41 Barren 1.83 0.92 1.84 1.47 1.01 0.95 7.41 0.93 3.48 1.67 1.86 0.68 1.10 1.62 2.21 2.66 4.11 1.36 2.36 2.50 1.64 0.25 0.02 0.78 0.19 0.04 0.79 0.05 0.03 0.37 10.65 5.00 5.00 9.00 5.06 5.00 41.00 5.19 5.00 6.26 2.36 1.07 1.93 1.70 0.12 1.79 1.94 1.79 2.02 1.63 0.75 2.22 1.49 1.70 1.21 1.91 2.50 3.18 1.42 2.29 0.47 Cu (%) 0.58 0.88 1.34 2.96 3.20 1.21 2.81 0.60 Zn (%) Ag (g/t)
Stopped due to high deviation
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Hassai Long Holes 2007-2009 Hole ID HASS_D183 HASS_D184 HASS_D184 HASS_D184 HASS_D185 HASS_D185 HASS_D186 HASS_D186 HASS_D187 HASS_D187 HASS_D188 HASS_D188 HASS_D189 HASS_D189 HASS_D189 HASS_D190 HASS_D190 HASS_D190 HASS_D190 HASS_D191 From 188.23 156.5 174 176.82 194.8 214.68 145.98 154.04 156.64 163.66 128.15 141.08 134.05 148.63 152 109 125.47 131.43 136.03 240.27 To 193.28 168 174.7 181.55 206.18 222.7 154.04 168.2 160.41 179.73 141.08 158.58 147.93 150.46 159.5 121.3 131.43 135.06 139.68 264.39 Thickness (m) 5.05 11.50 0.70 4.73 11.38 8.02 8.06 14.16 3.77 16.07 12.93 17.50 13.88 1.83 7.50 12.30 5.96 3.63 3.65 24.12 Au (g/t) 1.01 1.32 1.47 0.91 1.20 0.99 0.44 1.36 1.54 1.08 0.77 1.41 1.05 1.59 1.03 0.71 0.10 0.62 1.69 1.79 Cu (%) 0.36 1.25 3.25 1.65 1.41 1.31 0.53 2.45 0.26 1.63 0.42 2.67 0.67 0.68 1.23 0.18 0.32 0.31 0.69 1.48 Zn (%) 0.10 0.44 1.03 0.19 0.61 0.26 0.23 0.45 0.14 0.33 0.04 0.36 0.06 0.01 0.54 0.03 0.04 1.18 0.06 0.61 Ag (g/t) 5.00 5.00 12.00 5.00 5.07 5.25 5.24 6.57 5.00 5.78 5.00 6.12 5.00 0.82 5.89 5.00 5.00 6.34 5.00 5.89
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Hole ID
Hadal Awatib VMS Drilling Results, from Pit 2008-2009 Block A+B From To Thickness Au Cu Zn (m) (g/t) (%) (%) CS AA 13.00 13.00 6.00 1.00 3.00 0.00 16.00 10.00 46.00 1.00 19.00 12.00 1.00 2.00 6.00 1.00 29.00 0.00 22.00 46.00 15.00 24.00 14.00 17.00 7.00 20.00 19.00 24.00 51.00 4.00 23.00 21.00 12.00 6.00 10.00 20.00 36.00 19.00 37.00 58.00 50.00 33.00 11.00 141.00 107.00 61.00 67.00 278.00 286.00 16.00 11.00 27.00 61.00 77.00 85.00 93.00 44.00 71.00 114.00 17.00 16.00 8.00 42.40 8.40 24.00 2.40 28.00 5.00 CS DD 11.00 5.00 9.00 25.00 16.00 3.00 2.00 10.00 23.00 34.00 11.00 2.00 11.00 8.00 CS BB 16.00 4.00 20.00 3.00 14.00 5.00 3.00 4.00 9.00 CS CC 11.00 4.00 4.00 19.00 7.00 19.00 15.00 12.00 1.56 0.83 0.21 9.10 21.10 1.73 1.34 0.87 1.18 1.04 0.75 1.00 0.67 0.34 1.63 1.56 1.09 1.17 0.83 2.33 19.24 37.64 1.72 0.92 1.61 2.20 4.22 0.63 0.83 1.70 1.04 2.39 4.63 1.86 0.59 3.12 0.78 0.60 0.70 1.87 1.36 0.94 2.00 5.34 4.29 1.34 0.51 1.72 4.99 0.80 2.20 0.77 0.69 3.11 1.25 0.91 1.23 0.63 0.98 0.71 0.91 0.66 1.55 1.23 2.35 1.16 2.42 1.93 3.68 4.68 11.04 3.01 13.27 0.94 3.10 0.45 1.34 1.66 0.77 1.26 0.44 0.28 0.20
Ag (g/t) 10.00 1.18 8.44 8.69 20.75 7.00 25.33 4.60 29.67 4.25
HAE R 260 HAE R 261 HAE R 262 HAE R263 inc HAE R264 inc HAE R265 HAE R266 HAE R267 HAE R268 inc HAE R269 HAE R270 HAE R271
99.27 258.00 9.25 8.79 5.57 4.80 8.75
HAE R272 HAE R273 HAE R274 HAE D 316 HAE D 317
47.00 17.00 3.00 98.60 98.60 37.00 64.60 250.00 281.00
10.64 20.40 51.64 83.80 11.67 8.88 11.63 22.67 49.50 14.10 5.91 11.35 8.73
HAE R275 inc HAE R277
5.00 6.00 18.00 36.00 61.00 82.00 91.00
HAE R 278
34.00 48.00 80.00 6.00
HAE R279
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Hole ID HAE R280 inc
Hadal Awatib VMS Drilling Results, from Pit 2008-2009 Block A+B From To Thickness Au Cu Zn (m) (g/t) (%) (%) 33.00 104.00 104 133 182 18 26 37 129 4 71 inc inc 222.4 222.4 251 3 40 68 inc 87 5 5 6 18 36 0.00 24.00 54.00 77.00 9.00 34.00 53.00 192.80 216.20 37.00 130.00 107 174 194 22 34.00 48 144 48 79 266.5 226 254 24 54 105 94 21 12 8 33 46 24.00 44.00 73.00 107.00 34.00 46.00 66.30 196.10 248.80 16.40 149.00 163.00 182.00 4.00 26.00 3.00 41.00 12.00 4.00 8.00 11.00 15.00 44.00 8.00 44.10 3.60 3.00 21.00 14.00 37.00 7.00 CC EE 16.00 7.00 2.00 15.00 10.00 24.00 20.00 19.00 30.00 25.00 12.00 13.30 3.30 32.60 14.40 7.00 5.40 13.00 CC FF 0.72 1.19 1.99 0.78 1.79 2.86 2.13 1.14 1.03 1.34 0.80 1.54 0.81 3.79 0.58 1.10 0.57 0.95 7.47 21.53 3.625 1.12 1.30 1.07 1.20 1.13 0.57 1.26 1.09 1.04 0.58 1.03 1.15 0.86 1.16 1.24 barren 8 62 88 62 121 31 77 129 106 162 23.00 15.00 41.00 44.00 41.00 1.55 1.61 1.16 0.83 1.18 0.37 0.65 0.55 1.09 1.98 1.34 1.74 1.51 4.35 9.58 2.47 0.98 1.63 2.43 1.25 0.46 0.97 0.65 3.54 1.71 3.22 12.74 2.59 0.73 1.43 3.87 5.60 0.63 3.13 1.62 5.33 5.01 1.90 0.69 2.82 6.56 0.83 0.80 1.44 1.23 0.66 1.57 0.74 2.21 0.74 1.82 11.95 5.71 14.07 0.35 0.58 1.17 2.13
Ag (g/t) 25.25 14.15 29.67 3.80 13.00
HAE R281
10.82 12.07 6.61 6.94 15.02 15.50 40.00 4.64 5.24 13.29 21.81 45.60 10.5 9.07 8.90
HAE R282
HAE R283
HAE R286 inc HAE R287
HAE D 318
HAE D 319
26.36 15.55 21.29 15.11
HAE D 320
2.00 142.00 157.60 169.00
HAE R293 HAE R294 HAE R295 HAE R296
19.43 13.2 13.6 8.8 15.48
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Hadal Awatib VMS Drilling Results from Pit, Block C+D, 2008-2009 Hole ID HAE D 259 HAE R 304 HAE R 305 From 33.85 45.10 29.00 0.00 13.00 33.00 HAE R 306 inc HAE R307 HAE R308 HAE R 309 9.00 16.00 23.00 33.00 57.00 28.00 37.00 0.00 11.00 25.00 HAE R 310 HAE R 311 HAE R 312 HAE R 313 HAE R 314 HAE R 315 24.00 0.00 13.00 25.25 1.00 29.50 1.25 1.00 16.50 0.00 15.00 10.00 To 42.13 62.15 33.00 8.00 27.00 42.00 21.00 19.00 46.00 43.00 70.00 35.00 65.00 6.00 25.00 47.00 5.00 39.00 50.00 14.00 9.00 12.00 3.00 23.00 10.00 13.00 7.00 28.00 6.00 14.00 22.00 5.00 24.00 40.00 Thickness (m) 8.28 17.05 4.00 Au (g/t) 1.13 1.26 0.76 0.66 0.92 1.33 1.23 2.35 0.80 1.03 1.24 1.46 1.54 0.86 0.80 0.70 1.29 0.71 0.68 0.67 3.61 1.52 0.84 Cu (%) 5.39 1.13 1.91 4.96 4.07 0.63 0.63 13.27 2.87 2.13 0.53 4.23 0.97 1.77 0.96 1.41 0.25 0.41 3.19 5.81 1.39 1.54 4.30 8.00 51.00 16.67 1.23 0.24 3.80 1.17 6.00 1.26 2.51 1.33 2.28 Zn (%) 0.42 0.32 0.22 0.79 1.01 Ag (g/t) 13.45 12.24 5.75 9.75 10.64 8.56 8.56 25.33 7.70 16.10 9.00 16.29 15.11
drill hole interrupted
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Kamoeb Mineralised Intersections Hole ID From To Thickness (m) kame2_1 KAM_D006 KAM_D007 KAM_D192 KAM_D197 KAM_D198 KAM_D199 KAM_D200 KAM_D201 KAM_R339 KAM_R342 KAM_R343 KAM_R345 KAM_R346 KAM_R347 KAM_R348 8.5 17.5 12 26.5 10.3 25 3 25.5 0 26 33.5 25 58 31 0 0 3 6 31 0 55 11.5 31.5 17.5 39 18 63.79 19.5 39.5 42.3 29.8 44 36 66 32.7 4 14 22 19 60 31 82 kame2_2 KAM_D020 KAM_D026 KAM_D027 61.87 12.5 25 40.5 50 KAM_D028 24 43 52 61 KAM_D038 KAM_D064 KAM_D072 KAM_D073 KAM_D074 KAM_D075 30.2 39 50 25 55 70 45 46 67 66.25 34.5 36.5 46.5 53 39 49 58 71 31.5 40 53 28 63.5 83 47.5 49 69 4.38 22 11.5 6 3 15 6 6 10 1.3 1 3 3 8.5 13 2.5 3 2 0.09 2.22 4.12 1.1 1.07 7.08 22.12 1.33 3.49 5.36 6.6 10.47 1.53 3.39 4.02 5.5 1.07 1.35 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 14 5.5 12.5 7.7 38.79 16.5 14 42.3 3.8 10.5 11 8 1.7 4 14 19 13 29 31 27 11.33 6.5 8.14 3.11 10.08 7.03 6.12 4.72 9.55 8.83 6.9 4.78 23.21 25.4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6.55 4.08 10.94 6.95 10.84 7 6.41 AuCy (g/t) Au FA (g/t)
AMEC
Page 314
Kamoeb Mineralised Intersections Hole ID KAM_D076 KAM_D201 KAM_D202 KAM_R351 KAM_R352 KAM_R354 KAM_R355 KAM_R356 KAM_R358 KAM_R359 KAM_R360 From 41 75 0 0 0 4 0 8 2.52 20 3 9 0 19 34 51 60 74 KAM_R364 KAM_R365 KAM_R366 KAM_R372 32 35 56 30 36 35 41 59 KAM_R373 KAM_R374 KAM_R404 KAMS_R028 KAMS_R029 41 63 52 37 42.29 59.28 64 To 49 78.5 21 11 25 22 7 18 15 45 5 12 11 24 35 55 69 77 49 40 57 33 37 37 51 61 44 64 54 40 46.13 60 69 kame2_3 KAM_D022 KAM_D023 KAM_D026 KAM_D027 KAM_D074 KAM_D075 86.5 125 37 67.5 57.5 21 77 87.5 127 41 69.5 58.5 29 80.5 1 2 4 2 1 8 3.5 1.8 2.75 1.8 2.8 1.4 2.32 2.77 0 0 0 0 0 0 0 Thickness (m) 8 3.5 21 11 25 18 7 10 12.48 25 2 3 11 5 1 4 9 3 17 5 1 3 1 2 10 2 3 1 2 3 3.84 0.72 5 AuCy (g/t) 2.45 1.66 2.93 11.6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Au FA (g/t) 0 0 0 0 4.01 10.95 2.04 6 2.42 2.37 5.97 16.17 5.31 6.59 0.76 1.61 2.47 1.24 1.41 4.4 0.81 3.79 1.59 10.62 3.71 2.21 3.57 2.94 63.25 0.78 0.14 0.07 3.98
AMEC
Page 315
Kamoeb Mineralised Intersections Hole ID KAM_D076 From 29 88 95.5 KAM_D077 KAM_D088 KAM_D191 KAM_D202 KAM_R343 KAM_R346 KAM_R348 KAM_R350 14 91 30 40 29 67 26 7 26 35 KAM_R351 KAM_R353 33 2 28 34 41 KAM_R354 20 29 41 49 KAM_R356 KAM_R357 KAM_R358 KAM_R359 KAM_R365 KAM_R366 KAM_R370 KAM_R383 KAMS_R030 KAMS_R031 KAMS_R032 KAMS_R033 20 19 36 44 64 78 39 85 111 83 108 113 144 To 38 90 104.5 26.5 91.5 35 44 31 71 31 8 30 41 35 16 31 36 48 22 30 44 50 23 21 40 46 66 79 48 87 112 89 110 116 148 kamn4_1 KAM_D172 KAM_D173 KAM_D174 KAM_D175 24 35 50 35 19 25 39 52.5 35.8 21 1 4 2.5 0.8 2 3.9 2.1 1.16 0.8 1.05 0 0 0 0 0 Thickness (m) 9 2 9 12.5 0.5 5 4 2 4 5 1 4 6 2 14 3 2 7 2 1 3 1 3 2 4 2 2 1 9 2 1 6 2 3 4 AuCy (g/t) 8.61 6.85 6.3 2.92 5.5 2.58 8.05 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Au FA (g/t) 0 0 0 0 0 0 0 4.96 5.39 7.53 1.27 4.6 2.92 0.96 3.97 2.8 0.89 1.47 1.52 1.19 9.16 1.06 8.38 2.1 1.79 3.17 15.4 1.11 4.53 1.77 1.53 1.65 2.03 3.29 1.25
AMEC
Page 316
Kamoeb Mineralised Intersections Hole ID KAM_D176 KAM_D177 KAM_D178 KAM_D182 KAM_D183 KAM_D187 KAM_D188 KAM_D189 From 13 46 23.5 46 70.5 44 52.35 12 39 47.5 53.7 56 68 KAM_D190 90 97 102 KAM_D234 KAM_D235 12.5 26 0 24 34 44 KAM_D236 5 14.5 26 37.5 45 KAM_D237 5 11 44.3 KAM_D239 KAM_D240 KAM_D241 KAM_D243 KAM_D245 KAM_D246 KAM_D247 4 45 40.6 30 37 46.5 22.5 34.1 35.29 57.7 40.8 53.8 To 23 47 30 48.5 71.5 51 57 15.5 44 51 54 62 71.5 92 99 106 16.2 37 5.35 28.3 35.5 49 11.5 16 27.5 43.5 49 7 13.4 47.5 4.5 45.2 42.7 30.8 37.8 50.8 31 38.7 39.19 62.6 42.7 57 Thickness (m) 10 1 6.5 2.5 1 7 4.65 3.5 5 3.5 0.3 6 3.5 2 2 4 3.7 11 5.35 4.3 1.5 5 6.5 1.5 1.5 6 4 2 2.4 3.2 0.5 0.2 2.1 0.8 0.8 4.3 8.5 4.6 3.9 4.9 1.9 3.2 AuCy (g/t) 4.88 1.46 4.68 2.7 1.9 1.19 2.22 4.16 2.38 4.93 1.7 1.92 1.27 1.9 3.3 2.15 1.89 1.41 0 3.84 1.6 0.97 2.22 4.9 1.4 2.16 2.17 1.03 2.89 1.17 1.5 2.3 0.37 2 2.1 2.41 1.44 4.18 0 2.76 2.55 2.77 Au FA (g/t) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
AMEC
Page 317
Kamoeb Mineralised Intersections Hole ID KAM_D248 KAM_D249 KAM_D251 KAM_D255 From 58 73.5 21.7 89.3 8.6 27 31 36.8 KAM_D256 KAM_D257 6 12.2 25.49 28.68 KAM_D258 KAM_D259 KAM_D260 20.5 18.3 34.5 7.5 16.5 45 KAM_D262 31.5 34.4 47 KAM_D263 KAM_D265 KAM_D266 KAM_D268 KAM_D269 KAM_D270 KAM_D271 KAM_D272 39.1 47 24.5 58 40.5 22 18.3 28 44.2 6.5 8.8 17.1 40 KAM_D273 KAM_D274 KAM_D275 21.4 56.1 68.2 18 19.5 43.7 KAM_D276 2 17.8 To 62.8 76.3 26.65 91.1 11.55 28 34 39.2 13.5 16.4 25.83 30 23 20 36 8.9 17.5 51.5 32.5 35 62 44 47.8 24.6 61.5 43.2 24 23.5 28.6 47.5 7.5 11.8 30 42 26 57 69.45 18.7 38.5 44.6 7 21 Thickness (m) 4.8 2.8 4.95 1.8 2.95 1 3 2.4 7.5 4.2 0.34 1.32 2.5 1.7 1.5 1.4 1 6.5 1 0.6 15 4.9 0.8 0.1 3.5 2.7 2 5.2 0.6 3.3 1 3 12.9 2 4.6 0.9 1.25 0.7 19 0.9 5 3.2 AuCy (g/t) 1.25 1.01 4.02 2.93 4.53 3.1 2.07 2.17 2.89 2.45 0 0 4.4 6.52 3.13 1.71 4.6 6.32 3 2.7 4.01 1.22 5.8 2.7 1.51 4.5 1.13 2.71 1.7 6.75 1 6.84 2.23 1.95 1.9 2.1 2.43 2.8 3.22 1.3 6.08 1.48 Au FA (g/t) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
AMEC
Page 318
Kamoeb Mineralised Intersections Hole ID From 25.5 KAM_D277 1.5 7.6 32.2 KAM_D278 KAM_D279 KAM_D280 KAM_D287 KAM_D289 KAM_R418 KAM_R419 10.7 28.15 41.9 24.1 20.6 34 34 53 61 KAM_R420 KAM_R421 KAM_R422 KAM_R423 KAM_R424 KAM_R425 KAM_R426 29 48 67 2 4 27 11 11 31 12 To 31.5 4.5 13.2 33 15.9 35.2 50.5 26.8 21.2 36 36 58 64 37 53 90 16 16 31 15 21 33 13 kamn4_2 KAM_D179 15.2 18 kamn4_3 KAM_D284 KAM_D285 KAM_D286 31.2 19.4 16.1 31.65 22.8 19 kams1_1 KAM_D001 KAM_D002 KAM_D003 KAM_D004 KAM_D005 KAM_D009 KAM_D010 KAM_D019 KAM_D020 3 17 26 36.5 58.5 107 136.5 4.5 32 4.5 19.5 28 38.5 62 110 138.5 21.5 51.5 1.5 2.5 2 2 3.5 3 2 17 19.5 5.23 4.92 4.92 1.2 3.83 8.02 4.2 4.33 7.52 0 0 0 0 0 0 0 0 0 0.45 3.4 2.9 0 3.4 1.94 4.21 0 0 0 2.8 0 1.36 0 Thickness (m) 6 3 5.6 0.8 5.2 7.05 8.6 2.7 0.6 2 2 5 3 8 5 23 14 12 4 4 10 2 1 0 AuCy (g/t) 2.35 2.43 5.56 2.4 6.26 3.55 3.24 0.63 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Au FA (g/t) 0 0 0 0 0 0 0 0 0 1.76 1.25 1.2 2.06 1.74 1.11 0.97 2.35 2.45 3.84 4.1 1.02 1.29 1.03
AMEC
Page 319
Kamoeb Mineralised Intersections Hole ID KAM_D021 KAM_D022 KAM_D023 KAM_D024 KAM_D031 KAM_D032 KAM_D033 KAM_D034 KAM_D039 KAM_D040 KAM_D041 KAM_D042 KAM_D043 KAM_D044 KAM_D048 KAM_D049 KAM_D050 KAM_D051 KAM_D052 KAM_D054 KAM_D055 KAM_D056 KAM_D057 KAM_D058 KAM_D059 KAM_D060 KAM_D061 KAM_D062 KAM_D063 KAM_D064 KAM_D065 KAM_D066 KAM_D067 KAM_D068 From 46.5 76 45 73.5 94.5 138.5 142.5 14 44 65.8 107.5 18.5 24 61.5 85 103.5 119 29 51 79.5 11.13 95 19.5 25 28.5 33 55 74.5 100.5 124 79.12 28.5 45 47.5 56 89.5 24 54 76 82.2 110.5 134.5 To 67.5 77.8 69 79.5 112.5 140.5 150 16 47 69.5 108.5 31.5 41 68.5 90 106.3 122.5 32.5 57 85 37 98.5 24 38 30 48.5 66 79 104.5 126.5 81 41.5 57 51.5 69 93.5 44 71 78.5 87.5 119.5 148.5 Thickness (m) 21 1.8 24 6 18 2 7.5 2 3 3.7 1 13 17 7 5 2.8 3.5 3.5 6 5.5 25.87 3.5 4.5 13 1.5 15.5 11 4.5 4 2.5 1.88 13 12 4 13 4 20 17 2.5 5.3 9 14 AuCy (g/t) 3.08 6.87 2.39 3 2.68 2.35 3.1 6.2 2.55 2.44 2.1 6.97 3.71 3.97 4.8 3.63 3.33 6.17 2.52 3.29 0 6.8 8.6 6.62 9 11.71 3.19 12.01 3.42 8.6 0 5.77 6.98 6.88 6.59 1.18 6.89 4.22 9.9 1.6 3.22 3.49 Au FA (g/t) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
AMEC
Page 320
Kamoeb Mineralised Intersections Hole ID KAM_D069 KAM_D070 KAM_D075 KAM_D076 KAM_D077 KAM_D078 KAM_D079 KAM_D083 KAM_D084 KAM_D085 KAM_D086 KAM_D088 KAM_D090 KAM_D091 KAM_D092 KAM_D093 KAM_D096 KAM_D101 KAM_D102 KAM_D103 KAM_D104 KAM_D105 KAM_D106 KAM_D107 KAM_D108 KAM_D113 KAM_D114 KAM_D115 KAM_D116 KAM_D122 KAM_D123 KAM_D124 KAM_D125 KAM_D138 KAM_D139 KAM_D140 KAM_D141 KAM_D142 KAM_D191 KAM_D193 From 98.3 60 5.23 8 41.5 42.5 52.5 70.5 45.5 70.7 91 124.32 66 21.5 51.2 73 96 150 6 23.8 51 86.5 13.5 34.5 49.3 83 13.5 36.5 41.5 58 70.5 12.5 33.5 16 112 59 78 41 61.7 89 43 64 To 98.6 60.5 11.53 21 50 61.5 69 74.5 49 73.7 92 126 86 24.5 54 78 106 158 10 28 56 94.3 17 36.2 52.3 85.5 16.5 38.5 43.2 60 74 17.5 36.5 20 122 65 81 42.5 63.7 93 54.8 82.5 Thickness (m) 0.3 0.5 6.3 13 8.5 19 16.5 4 3.5 3 1 1.68 20 3 2.8 5 10 8 4 4.2 5 7.8 3.5 1.7 3 2.5 3 2 1.7 2 3.5 5 3 4 10 6 3 1.5 2 4 11.8 18.5 AuCy (g/t) 1.9 3 0 2.85 3.14 7.36 6.99 9.17 2.26 2.97 2.4 0 5.58 1.87 3.28 2.42 2.86 4.65 3.25 7.73 7.46 5.54 2.81 2.42 0.9 4.98 5.47 3.1 2.18 1.6 1.54 4 1.2 3.2 4 2.5 1.47 4.43 2.45 2.33 8.2 4.68 Au FA (g/t) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
AMEC
Page 321
Kamoeb Mineralised Intersections Hole ID KAM_D195 KAM_D402 KAM_D403 KAM_R360 KAM_R361 KAM_R362 KAM_R363 KAM_R364 KAM_R365 KAM_R366 KAM_R367 KAM_R369 KAM_R370 KAM_R371 KAM_R372 KAM_R373 KAM_R374 KAM_R375 KAM_R377 KAM_R383 KAM_R385 KAM_R386 KAM_R387 KAM_R388 KAM_R391 KAM_R392 KAM_R404 KAMS_R001 KAMS_R002 KAMS_R003 KAMS_R004 KAMS_R005 KAMS_R007 KAMS_R008 KAMS_R009 KAMS_R010 From 48 148.55 156 171 5 20 27 10 0 0 0 13 0 0 105 63 38 10 19 18 24 38 42 47 83 22 17 24 27 16 40 179 0 37 68 87 104 125 15 64 72 96 To 48.5 153 166 180 12 33 28 26 29 5.83 6 16 17 1 111 83 49 15 23 35 37 41 43 48 108 24 19 27 37 18 41 186 35 39 71 90 105 127 20 71 75 99 Thickness (m) 0.5 4.45 10 9 7 13 1 16 29 5.83 6 3 17 1 6 20 11 5 4 17 13 3 1 1 25 2 2 3 10 2 1 7 35 2 3 3 1 2 5 7 3 3 AuCy (g/t) 1.1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Au FA (g/t) 0 1.86 5.98 4.11 11.11 5.07 0.84 3.46 3.89 7.7 8.26 1.34 3.15 1.54 4.98 2.17 2.69 9.22 4.71 5.56 3.22 5.84 1.91 0.85 1.89 1.86 2.84 2.24 1.65 3.99 1.47 4.93 3.24 3.8 4.26 2.91 7.48 3.61 7.73 4.5 1.84 5.83
AMEC
Page 322
Kamoeb Mineralised Intersections Hole ID KAMS_R011 KAMS_R012 KAMS_R013 KAMS_R014 KAMS_R015 KAMS_R016 KAMS_R017 KAMS_R018 KAMS_R019 KAMS_R020 KAMS_R021 KAMS_R022 KAMS_R023 KAMS_R024 KAMS_R025 KAMS_R026 KAMS_R027 KAMS_R028 KAMS_R029 KAMS_R030 KAMS_R031 KAMS_R032 KAMS_R033 KAMS_R034 KAMS_R035 KAMS_R036 KAMS_R037 KAMS_R038 KAMS_R039 From 111 33 60 92 132 124 37 55 76 93 123 33 51 57 71 93 124 147 18 46 49 66.89 62 78 94 113 134 13 20 33 45 56 77 88 To 113 50 65 96 134 128 45 62 80 98 125 50 54 64 79 98 129 160 36 60 62 81 76 102 108 136 146 17 40 41 60 61 79 92.84 kams1_2 KAM_D008 KAM_D011 14 10 29.5 41 KAM_D012 16.5 43 35.5 20.5 36 42 32.5 45 21.5 10.5 6.5 1 16 2 2.36 2.5 3.05 2.3 4.04 1.7 0 0 0 0 0 0 Thickness (m) 2 17 5 4 2 4 8 7 4 5 2 17 3 7 8 5 5 13 18 14 13 14.11 14 24 14 23 12 4 20 8 15 5 2 4.84 0 AuCy (g/t) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Au FA (g/t) 2.66 5.02 5.23 4.99 8.29 1.94 5.95 3.91 3.38 9.84 2.87 3.05 5.99 2.98 3.95 6.23 6.77 3.18 5.16 6.88 3.57 2.23 2.27 4.52 2.14 3.03 4.48 3.88 3.4 3.92 5.4 7.45 5.97 8.3
AMEC
Page 323
Kamoeb Mineralised Intersections Hole ID From 47 KAM_D013 41.5 57 63 KAM_D014 KAM_D015 KAM_D016 KAM_D023 KAM_D024 KAM_D035 KAM_D036 KAM_D037 KAM_D041 KAM_D042 KAM_D043 KAM_D044 KAM_D050 KAM_D052 KAM_D053 KAM_D056 KAM_D057 KAM_D058 KAM_D059 KAM_D065 KAM_D066 KAM_D067 KAM_D068 KAM_D085 KAM_D086 KAM_D087 KAM_D094 KAM_D095 KAM_D096 67 77 97.5 104 132 75 130.5 35 56.5 80.4 17 47 75.5 101.56 33.5 50.5 78 21.5 53 84 109.5 19 59.5 98 123 11.7 49.5 76 16 24.5 18.5 26.5 15 28.5 37.5 KAM_D097 KAM_D098 35.5 43.5 61.5 To 51 47 60 72 72.5 88 102 108 141.3 81 134.5 36 58.5 81 25 52.5 77 102.99 36.5 54 79 27 54 85 114.5 28.5 60.5 99 125 13.2 54 80.5 23 31 20.5 40.5 20.5 33.5 47 41.5 46 67.5 Thickness (m) 4 5.5 3 9 5.5 11 4.5 4 9.3 6 4 1 2 0.6 8 5.5 1.5 1.43 3 3.5 1 5.5 1 1 5 9.5 1 1 2 1.5 4.5 4.5 7 6.5 2 14 5.5 5 9.5 6 2.5 6 AuCy (g/t) 1.08 3.36 5.3 4.31 3.57 5.15 1.6 2.68 2.26 3.08 2 6.8 10.65 3.5 1.74 1.48 0.87 0 1.43 3.67 1.45 2.15 1.2 1 2.78 3.07 6.3 0.6 2.65 2.1 5.92 3.63 1.63 3.13 2.6 5.25 6.34 4.34 3.05 1.95 2.32 1.7 Au FA (g/t) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
AMEC
Page 324
Kamoeb Mineralised Intersections Hole ID From 69.5 KAM_D099 KAM_D100 KAM_D109 KAM_D110 KAM_D111 KAM_D112 KAM_D117 KAM_D118 KAM_D119 KAM_D120 KAM_D121 KAM_D126 KAM_D127 KAM_D128 89.8 96.3 5.5 15.5 21.5 59.5 86.2 113 11.5 20.5 29.5 37.5 59 77 107.5 20.5 23.5 54 20 46.5 51 KAM_D129 47 54 67 KAM_D130 KAM_D131 KAM_D132 KAM_D133 KAM_D134 KAM_D135 KAM_D136 KAM_D137 KAM_D143 KAM_D144 68.3 71 109.2 41 59 98.8 41.7 63 98.5 36 52 54 62 72.5 KAM_D145 56 72 91 To 71 91.6 97.3 6.5 22.5 24.5 64.2 96 129.5 16.5 26.5 35.5 51.5 69 92 124 26.5 30.3 58.5 21 48 59.5 49.5 60 75.5 69 76.5 110.6 42.26 67 105 43 66 107.5 39 55 57.5 63.5 74 58.5 81 97.5 Thickness (m) 1.5 1.8 1 1 7 3 4.7 9.8 16.5 5 6 6 14 10 15 16.5 6 6.8 4.5 1 1.5 8.5 2.5 6 8.5 0.7 5.5 1.4 1.26 8 6.2 1.3 3 9 3 3 3.5 1.5 1.5 2.5 9 6.5 AuCy (g/t) 1.87 3.91 1.5 1.1 4.91 9.17 3.13 3.99 1.73 5.42 11.05 5.62 4.94 2.47 3.09 2.16 4.55 4.63 4.64 2.6 1.27 2.3 3.28 3.29 1.48 2.4 3.23 1.8 1.83 6.54 2.45 8.4 3.93 4.12 1.17 0.97 2.14 3.3 1.87 1.92 2.56 1.34 Au FA (g/t) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
AMEC
Page 325
Kamoeb Mineralised Intersections Hole ID From 99.5 KAM_D146 KAM_D149 KAM_D150 KAM_D204 KAM_D205 KAM_D206 76.5 86.5 31.5 11.5 12 17 0 11 26 KAM_D207 0 25.7 35 52.3 KAM_D208 0 41.5 49 KAM_D209 KAM_D211 KAM_D212 KAM_D213 KAM_R384 KAM_R392 KAM_R393 34.5 38 70 45.5 71.5 5 35 29 34 59 KAM_R394 KAM_R395 KAM_R396 8 0 12 0 18 24 33 KAM_R398 7 16 40 KAM_R399 0 11 39 KAM_R400 8 37 To 104.5 82 89.5 33 19 20 25 5 22 32 5.86 27.5 36 55 26 45.5 55 39.5 44 72 47.5 73.2 11 42 33 39 65 16 1 38 3 22 25 49 11 27 54 8 24 43 18 39 Thickness (m) 5 5.5 3 1.5 7.5 8 8 5 11 6 5.86 1.8 1 2.7 26 4 6 5 6 2 2 1.7 6 7 4 5 6 8 1 26 3 4 1 16 4 11 14 8 13 4 10 2 AuCy (g/t) 1.3 3.02 1.77 1.13 6.44 6.05 3.54 0.55 1.95 2.39 0 1.3 1 0.85 2.33 2.7 1.13 1.32 2.65 2.2 4.25 1.88 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Au FA (g/t) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2.54 6.57 3.09 5.29 4.58 4.67 0.88 2.65 1.92 1.59 0.76 1.01 4.07 1.96 2.85 1.51 1.99 4.33 4.39 1.64
AMEC
Page 326
Kamoeb Mineralised Intersections Hole ID From 47 KAM_R401 KAM_R405 KAM_R406 KAM_R407 KAM_R408 KAM_R409 KAM_R410 KAM_R411 KAM_R412 KAM_R413 KAM_R414 KAM_R415 KAMS_R003 KAMS_R004 KAMS_R005 KAMS_R006 KAMS_R008 KAMS_R009 KAMS_R010 KAMS_R013 KAMS_R014 KAMS_R015 KAMS_R016 KAMS_R017 KAMS_R018 KAMS_R019 KAMS_R020 KAMS_R021 KAMS_R022 KAMS_R023 KAMS_R024 KAMS_R025 KAMS_R026 KAMS_R027 KAMS_R032 KAMS_R033 KAMS_R034 13 8 43 63 56 19 27 11 22 43 59 63 24 47 6.01 25 46 68 25 24 59 26 58 114 104 10 31 59 77 105 1 29 58 81 110 138 79 104 127 To 50 20 12 47 72 70 26 32 23 33 50 64 66 25 49 9 28 48 72 28 32 60 32 63 115 105 12 32 60 80 114 12 37 59 83 115 139 83 109 132 kams1_3 Thickness (m) 3 7 4 4 9 14 7 5 12 11 7 5 3 1 2 2.99 3 2 4 3 8 1 6 5 1 1 2 1 1 3 9 11 8 1 2 5 1 4 5 5 AuCy (g/t) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Au FA (g/t) 1.25 1.85 5.11 6.7 5.38 3.01 4.85 1.85 2.57 1.74 1.98 3.61 1.31 2.69 0.82 5.06 2.25 5.83 6.04 1.48 2.06 0.75 6.26 2.32 1.12 2.98 1.6 2.16 2.87 1.52 1.44 2.75 1.76 1.66 1.73 1.19 1.19 2.67 2.8 1.11
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Kamoeb Mineralised Intersections Hole ID KAM_D043 KAM_D049 KAM_R391 KAMS_R007 KAMS_R014 KAMS_R016 From 111.78 117.5 64.5 69 2 25 29 103 108 119 130 136 To 112.71 118.5 66.5 70 8 26 30 105 109 121 131 137 kams1_4 KAM_D023 KAM_D085 KAM_D117 KAM_D118 KAM_D215 KAM_R393 KAM_R408 KAMS_R003 KAMS_R004 KAMS_R031 KAMS_R032 66.5 29.58 40.5 58 30.6 47 74 27 38 45 72 67 30.62 42 60 34.5 50 75 28 39 47 73 kams1_5 KAM_D031 KAM_D080 KAM_D081 KAM_D089 24 18.5 35.5 64.5 25 21.5 39 66.5 kamw3_1 KAM_D151 KAM_D152 KAM_D153 KAM_D155 KAM_D160 KAM_D161 KAM_D162 KAM_D163 KAM_D164 31 52.5 80.5 27.5 89.7 110.5 7 25.5 62 33 54 82.5 28 91.7 112 12.5 31 66 2 1.5 2 0.5 2 1.5 5.5 5.5 4 2.5 5.23 3.2 2.8 1.75 4.8 4.48 3.5 2.55 0 0 0 0 0 0 0 0 0 1 3 3.5 2 1.4 2.87 6.29 9.55 0 0 0 0 0.5 1.04 1.5 2 3.9 3 1 1 1 2 1 1.3 0 0.97 3 1.28 0 0 0 0 0 0 0 0 0 0 0 3.32 3.9 1.04 3 2.5 0.87 Thickness (m) 0.93 1 2 1 6 1 1 2 1 2 1 1 AuCy (g/t) 0 8.2 1.1 1.7 0 0 0 0 0 0 0 0 Au FA (g/t) 0 0 0 0 4.28 1 1.07 5.38 1 1.11 1.29 0.95
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Kamoeb Mineralised Intersections Hole ID KAM_D165 KAM_D166 KAM_D168 KAM_D169 KAM_D170 KAM_D171 KAM_D217 KAM_D218 KAM_D219 KAM_D220 KAM_D221 KAM_D222 KAM_D225 KAM_D226 KAM_D227 KAM_D229 KAM_D230 KAM_D231 KAM_D232 KAM_D233 From 81 28.3 35 45 90 100 30 48 14 34 52.5 24.5 39.3 31 40 26.8 29.5 52 32 46.5 To 83 33.5 35.6 51.15 92 103 32 50.5 15 37 53.5 24.9 42 32.5 43 27.2 30 53 33 48 Thickness (m) 2 5.2 0.6 6.15 2 3 2 2.5 1 3 1 0.4 2.7 1.5 3 0.4 0.5 1 1 1.5 AuCy (g/t) 1.9 0.95 3.5 2.36 2.15 2.37 1.74 2.36 3.7 1.5 1.7 2.9 1 1.8 2.37 0.8 1.1 3.3 5.3 1.53 Au FA (g/t) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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Example of Business Plan Hassai Mine Sudan

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The Hassai Mine Envisaged Business Plan (CIL Gold Plant and VMS Concentrator) Red Sea State,

La Mancha Resources Inc. and Ariab Mining Company

22 October 2010 31 August 2010 31 December 2009

FINAL Rev 0 22 Oct 2010

1.11 1.12 1.13 1.14 2. 2.1 2.2 2.3 2.4 2.5

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5.5 5.6 5.7 6. 6.1 6.2 7. 7.1 7.2 8. 8.1 8.2

8.3 9. 9.1 9.2

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11. 11.1 11.2 11.3

11.4 12. 12.1 12.2 12.3 12.4 13. 13.1

14. 14.1 14.2

14.3 14.4 14.5 14.6 14.7

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15. 16. 16.1 16.2

17. 17.1 17.2

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18. 18.1 18.2

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18.6 18.7 18.8

18.10 18.11 18.12 18.13

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20. 20.1 20.2

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1.3 1.3.1 1.3.1.1

Weathering product of VMS mineralisation with enriched gold values.

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Gold Reserves, 31 December 2009

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Additional Gold Resources, Post-2009

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Figure 1.1 Kamoeb South Pit Design Plan View

Figure 1.2 Kamoeb North Pit Design Plan View

FINAL Rev 0 22 Oct 2010

Heap Leach Tailings and Stockpile Reclaim

Bench Face Angle

Bench Height (m) 10

FINAL Rev 0 22 Oct 2010

The pit design is shown in Figure 1.3.

Hassai South Underground Mine Design

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Figure 1.4 is a long section outlining the underground development concept.

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VMS Plant Feed

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Figure 1.7 Hassai South Underground Stoping Schedule (Ore)

Period Primary Supergene

Figure 1.8 Hadal Awatib 5 Mt/a Ore Mining Profile

FINAL Rev 0 22 Oct 2010

Figure 1.9 Hadal Awatib 5 Mt/a Mining Profile

Mine Capital Cost

FINAL Rev 0 22 Oct 2010

Mine Operating Cost