Beruflich Dokumente
Kultur Dokumente
Prepared by:
Authors:
Capstone Mining Corp.
Gregg Bush, P.Eng.
Amec Foster Wheeler Environment &
Infrastructure Inc.
Tony J. Freiman, PE
Kirkham Geosystems Ltd
Garth Kirkham, PGeo., FGC
KWM Consulting Inc
Ken Major, P.Eng.
Independent Mining Consultants, Inc.
John Marek, PE, SME-RM
SRK Consulting (U.S.), Inc.
Corolla Hoag, CPG, SME-RM
Tony J. Freiman, PE
Page | 2
Table of Contents
1
Summary ............................................................................................................................................. 14
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
Project Description...................................................................................................................... 14
Accessibility, Climate Local Resources and Physiography .......................................................... 15
History and Ownership ............................................................................................................... 16
Geology and Mineralization ........................................................................................................ 16
Exploration, Sampling and Drilling .............................................................................................. 16
Mineral Resource ........................................................................................................................ 17
Mineral Reserves......................................................................................................................... 18
Mining Methods and Mine Plan.................................................................................................. 18
Mineral Processing and Metallurgical Testing ............................................................................ 20
Project Infrastructure.................................................................................................................. 21
Environment................................................................................................................................ 21
Closure Plan and Costs ................................................................................................................ 21
Permitting ................................................................................................................................... 21
Operating Cost and Sustaining Capital........................................................................................ 22
Economic Analysis ....................................................................................................................... 22
Interpretation and Conclusions .................................................................................................. 23
Recommendations ...................................................................................................................... 23
Introduction ........................................................................................................................................ 24
2.1
2.2
2.3
2.4
2.5
2.6
Overview ..................................................................................................................................... 24
Qualified Persons ........................................................................................................................ 24
Site Visits ..................................................................................................................................... 24
Sources of Information ............................................................................................................... 25
Units of Measurement ................................................................................................................ 25
Frequently used Acronyms, Abbreviations, Definitions and Units of Measure.......................... 25
Location....................................................................................................................................... 32
Tenure, Ownership and Encumbrances ...................................................................................... 32
Environmental Liabilities ............................................................................................................. 33
Permitting ................................................................................................................................... 33
Royalties ...................................................................................................................................... 33
Accessibility ................................................................................................................................. 34
Page | 3
5.2
5.3
5.4
History ................................................................................................................................................. 36
Deposit Types...................................................................................................................................... 48
Exploration .......................................................................................................................................... 53
10
Drilling ................................................................................................................................................. 54
11
12
13
Page | 4
13.4.2 Grinding............................................................................................................................... 86
13.4.3 Flotation .............................................................................................................................. 88
13.5 Metallurgical Variability .............................................................................................................. 89
13.6 Processing Factors or Deleterious Elements............................................................................... 89
14
14.1
14.2
14.3
14.4
14.5
14.6
14.7
14.8
14.9
14.10
14.11
15
15.1
15.2
16
17.1
17.2
Mill Process Design Criteria (2014) and Current Flow Sheet .................................................... 155
Process Criteria: 2015 Pinto Valley Operations Review............................................................ 156
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19.1
19.2
19.3
19.4
19.5
19.6
19.7
19.8
20
Page | 6
20.2.1
20.2.2
20.2.3
20.2.4
20.2.5
20.2.6
20.2.7
20.2.8
20.2.9
23
23.1
23.2
23.3
24
25
25.1
25.2
Page | 7
25.3
25.4
25.5
25.6
26
27
Page | 8
Table of Tables
Table 1-1: Mineral Resources at 0.17% TCu Cutoff, after 1 January 2016 (metric units) ........................... 18
Table 1-2: Mineral Reserves, Remaining after 1 January 2016 (metric units) ............................................ 18
Table 1-3: Mine Extraction Plan (metric units) ........................................................................................... 19
Table 1-4: Mill Feed Schedule ..................................................................................................................... 20
Table 1-5: Unit Cost Summary .................................................................................................................... 22
Table 1-6: Capex Cost Summary ................................................................................................................. 22
Table 2-1: Qualified Persons Responsibilities by Section ........................................................................... 24
Table 2-2: Acronyms and Abbreviations ..................................................................................................... 25
Table 2-3: Glossary ...................................................................................................................................... 28
Table 11-1: Analytical Results for Replicate Pulp Assays 2006 Pinto Valley Mine QA/QC Program........... 59
Table 11-2: Total and Stepwise Sampling Estimates and Analytical Variances .......................................... 61
Table 11-3: Duplicate Pair Analytical Variance for %TCu ............................................................................ 67
Table 11-4: Duplicate Pair Analytical Variance for %Mo ............................................................................ 67
Table 13-1: Ore Lithological Distribution for the Life of Mine .................................................................... 74
Table 13-2: Bond Ball Mill Work Index Modeling (metric tonnes) ............................................................. 74
Table 13-3: Staged Recovery Predictions.................................................................................................... 79
Table 13-4: Copper Flotation Recovery Model ........................................................................................... 81
Table 13-5: Bond Work Index Test Results ................................................................................................. 84
Table 13-6: Rougher Flotation Recovery .................................................................................................... 84
Table 13-7: Comparing Flotation Test Recovery to Projected Recovery .................................................... 85
Table 13-8: Production Model (2014) ......................................................................................................... 86
Table 13-9: Production Model (2015) ......................................................................................................... 87
Table 14-1: List of Drillholes used in PVM 2015 Resource Estimate and Model Update ........................... 90
Table 14-2: Assay Statistics ......................................................................................................................... 91
Table 14-3: Assay Statistics by Mineralized Zone ..................................................................................... 105
Table 14-4: Correlogram Model Data by Metal ........................................................................................ 114
Table 14-5: Correlogram Model Data by Metal ........................................................................................ 115
Table 14-6: Correlogram Model Data by Metal ........................................................................................ 115
Table 14-7: Interpolation Parameters....................................................................................................... 115
Table 14-8: Mineral Resources at 0.17% TCu Cutoff Grade1, 2 - Imperial ............................................... 119
Pinto Valley Mine Life Extension Study, February 2016
Page | 9
Table 14-9: Mineral Resources at 0.17% TCu Cutoff Grade1, 2 (Metric Units) ........................................ 119
Table 15-1: Base Case Floating Cone Input Pinto Valley Project ........................................................... 122
Table 15-2: Mineral Reserves, Remaining After 1 January 2016 (metric) ................................................ 126
Table 16-1: Inter-ramp Slope Angles, from SRK Consulting ...................................................................... 130
Table 16-2: Mine Extraction Plan Mill Rate of 54,000 TPD (2016), 56,000 TPD (2017 and beyond) ..... 133
Table 16-3: Mill Feed Schedule Includes low grade stockpile 2038 and 2039....................................... 134
Table 16-4: Mine Major Equipment Fleet Requirement ........................................................................... 147
Table 16-5: Maximum Equipment Availabilities and Use of Availabilities................................................ 148
Table 16-6: Drill Requirements Blast Hole Drill...................................................................................... 149
Table 16-7: Mined Tonnage Movement by Shovel and Loader Fleets (re-handle is not included).......... 150
Table 16-8: Shovel Requirements - Hitachi EX5600 Loading Cat789D Trucks .......................................... 151
Table 16-9: Wheel Loader Requirements - Cat 994 Loading Cat789D Trucks .......................................... 152
Table 16-10: Cat 789D Haul Truck Requirements ..................................................................................... 153
Table 16-11: Hourly and Mine Supervisory Personnel ............................................................................. 154
Table 20-1: Summary of Key Permitting Considerations. ......................................................................... 179
Table 21-1: Unit Cost Summary ................................................................................................................ 184
Table 21-2: Mine Unit Cost Summary ....................................................................................................... 185
Table 21-3: Process Operating Cost Summary .......................................................................................... 185
Table 21-4: Capex Cost Summary ............................................................................................................. 186
Page | 10
Table of Figures
Figure 1-1: Current Pinto Valley Site Facilities (Capstone Mining Corp, 2014)........................................... 15
Figure 4-1: Pinto Valley Mine Location Map (Google Maps, 2015) ............................................................ 32
Figure 5-1: Pinto Valley Mine Location ....................................................................................................... 34
Figure 7-1: Pinto Valley Mine Geology Plan................................................................................................ 39
Figure 7-2: Generalized Columnar Lithology Sections for the Castle Dome Area ...................................... 40
Figure 8-1: Anatomy of a Telescoped Porphyry System (Sillitoe, 2010) ..................................................... 49
Figure 8-2: Generalized Alteration-Mineralization Zoning Pattern for Telescoped Porphyry Copper
Deposits (Sillitoe, 2010) .............................................................................................................................. 50
Figure 8-3: Pinto Valley Mine Alteration and Mineralization Plan Map ..................................................... 51
Figure 11-1: Analytical Results from Standard Reference Materials .......................................................... 57
Figure 11-2: Relative Half Differences in Replicate Pulp Analyses (compares original PVM copper assays
with Skyline repeats)................................................................................................................................... 58
Figure 11-3: Comparison of 15 Field Duplicate Samples ............................................................................ 60
Figure 11-4: Comparison of Field Duplicate Samples - Skyline ................................................................... 62
Figure 11-5: Comparison of Field Duplicate Samples ALS Global ............................................................ 63
Figure 11-6: Comparison of Coarse Duplicate Samples - Skyline................................................................ 64
Figure 11-7: Comparison of Coarse Duplicate Samples ALS Global ......................................................... 65
Figure 11-8: Comparison of Pulp Duplicate Samples - Skyline ................................................................... 66
Figure 11-9: Scatterplots showing Field Duplicates for %TCu for 2015 Drilling ......................................... 68
Figure 11-10: Scatterplots showing Field Duplicates for %Mo for 2015 Drilling ........................................ 69
Figure 11-11: Scatterplots Coarse Duplicates for %TCu for 2015 Drilling .................................................. 69
Figure 11-12: Scatterplots Coarse Duplicates for %Mo for 2015 Drilling ................................................... 70
Figure 11-13: Scatterplots Pulp Duplicates for %TCu for 2015 Drilling ...................................................... 70
Figure 11-14: Scatterplots Coarse Duplicates for %Mo for 2015 Drilling ................................................... 71
Figure 13-1: Bond Ball Mil Work Index ....................................................................................................... 73
Figure 13-2: Copper Feed Grade vs Recovery ............................................................................................. 76
Figure 13-3: Copper Recovery vs Soluble Copper Content ......................................................................... 76
Figure 13-4: 2007 Fleet Model .................................................................................................................... 77
Figure 13-5: Rougher Flotation Recovery of Copper Sulfides ..................................................................... 78
Figure 13-6: Moly Recovery to the Copper Rougher Concentrate ............................................................. 79
Pinto Valley Mine Life Extension Study, February 2016
Page | 11
Page | 12
Page | 13
1 Summary
The purpose of this report is to disclose the updated mineral resource and mineral reserve estimates for
the Capstone Mining Corp. (Capstone) Pinto Valley Mine (PVM) through a planned extension of mining
and milling operations to 2039 from 2026. The 13-year mine life extension will require mine equipment
additions and replacements, a tailings storage facility expansion, and a new waste rock storage facility.
The remaining PVM facilities are adequate to support the mine life extension. Processing throughput
will increase from 54,000 tpd in 2016 to 56,000 tpd in 2017, through to the end of mine life. Permit
amendments will be required from the US Forest Service (USFS) and Arizona Department of
Environmental Quality (ADEQ). The information contained herein has been prepared by Qualified
Persons (QPs) and is aligned with National Instrument 43-101 Standards of Disclosure for Mineral
Projects (NI 43-101).
Capstone contributed to multiple sections of this report and compiled the report. Consultants
contributing to this report include Amec Foster Wheeler Environment & Infrastructure Inc. (AMEC);
Independent Mining Consultants, Inc. (IMC); Kirkham Geosystems Ltd.; KWM Consulting Inc.; and SRK
Consulting (U.S.), Inc. (SRK). Personnel from each of these companies have signed off as QPs, as defined
in NI 43-101, for their specific sections of the technical report that they are responsible for preparing.
This technical report has an effective date of 01 January 2016. All information and assumptions
discussed in this report were determined as of the effective date. In Section 1, tables and production
statistics are reported in imperial and metric units. In the remainder of the report, imperial and metric
units are used interchangeably and are identified for each table and figure. Cost estimates are based on
2015 US Dollars (US$).
Capstone is a Canadian-based metals mining company committed to the responsible development of
the mines assets and surrounding environment. Capstones focus is on the production of copper at
three producing mines: Pinto Valley Mine - copper-molybdenum (Cu-Mo) located in Arizona, United
States; the Cozamin Mine - copper-silver-zinc-lead (Cu-Ag-Zn-Pb) in Zacatecas, Mexico; and the Minto
Mine copper-gold-silver (Cu-Au-Ag) in Yukon, Canada. Capstones headquarters are in Vancouver,
Canada, and the company is listed on the Toronto Stock Exchange. Further information is available at
www.capstonemining.com.
Page | 14
Figure 1-1: Current Pinto Valley Site Facilities (Capstone Mining Corp, 2014)
Page | 15
The terrain surrounding the mine property is generally mountainous where elevations range from 3,500
ft. to 5,000 ft. above mean sea level.
Page | 16
Drilling campaigns from 2006 to 2008 had various purposes, including exploration, resource delineation
and verification, and geotechnical drilling. The campaigns included 63 geotechnical holes and 17
piezometers drilled in 2008.
The drilling campaign in 2010 focused on exploration, while the 2011 and 2012 campaigns focused on
infill drilling for resource classification upgrade in support of restarting operations. Ten holes were
drilled in 2010, 40 holes were drilled in 2011, and 64 holes were drilled in 2012.
Since the last update in 2014 an infill RC program consisting of 43 holes aimed at 2016 and 2017
production, as well as 13 geotechnical holes were drilled and assayed. Data from the RC program has
been incorporated into the 2015 block model.
Include a minimum of 2 composites and a maximum of 16, with a maximum of 4 from any 1 drillhole.
The mineral resources are listed in Table 1-1 for %TCu and %Mo. These mineral resources are listed at a
base-case cutoff grade of 0.17% TCu.
Page | 17
Table 1-1: Mineral Resources at 0.17% TCu Cutoff, after 1 January 2016 (metric units)
Tonnes
Classification
%Cu
%Mo
Contained Cu (M Lbs) Contained Mo (M Lbs)
(millions)
Measured (M)
648
0.34
0.008
4,844
119
Indicated (I)
772
0.26
0.006
4,388
106
Total M & I
1,420
0.30
0.007
9,231
224
Inferred
126
0.25
0.005
687
14
The economic assumptions for the reasonable prospects pit include: $3.30/lb Cu, $10.00/lb Mo, 88% Cu recovery, 50% Mo recovery, $1.50/ton
mining costs, $1.50/ton G&A costs, $5.00/ton milling costs, and a pit slope of 45.
Note: Summation errors due to rounding.
The qualified person for the mineral reserve is John Marek of IMC. John Marek did not audit or verify the
block model or the statement of mineral resources. Scientific and technical information about the
mineral reserves is based on forward-looking information. Metal price assumptions, resource modelling
assumptions, factors applied and risks are explained in the relevant sections of this report. Changes in
these could impact the mineral reserve in a positive or negative way.
Page | 18
Cut Off
% Tcu
0.18
0.19
0.19
0.17
0.18
0.19
0.18
0.17
0.17
0.17
0.17
0.17
0.17
0.22
0.22
0.18
0.19
0.17
0.17
0.17
0.17
0.17
0.17
0.00
Total Mined
Waste
M tonnes
M Tonnes
42.5
22.7
44.9
23.5
48.5
26.2
48.6
28.2
48.5
28.1
48.5
27.3
48.5
28.1
48.5
28.1
48.5
28.1
48.5
28.1
48.5
28.1
48.5
28.1
48.5
28.1
48.5
18.5
48.5
26.5
48.5
28.1
24.7
4.1
23.4
3.0
23.4
3.0
21.8
1.4
20.7
0.3
20.4
0.0
9.9
0.0
0.0
0.0
910.9
437.1
Economic inputs to the block model were USD$2.75/lb Cu and USD$12.50 Moly
Note: Summation errors due to rounding
Page | 19
Mill Feed
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
Total
M tonnes
19.76
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
4.402
473.8
% Mo
0.008%
0.008%
0.011%
0.011%
0.013%
0.008%
0.007%
0.007%
0.008%
0.010%
0.014%
0.014%
0.010%
0.009%
0.009%
0.010%
0.009%
0.008%
0.007%
0.008%
0.008%
0.006%
0.006%
0.007%
0.009%
Payable Copper in
Concentrate
M lbs
133.3
130.9
120.0
124.4
134.8
132.2
122.2
110.5
110.5
138.3
153.9
127.4
115.7
106.5
119.1
122.2
118.3
106.1
110.0
102.6
95.2
109.1
90.2
16.0
2,749.4
Payable Moly
M lbs
1.0
1.4
2.2
2.2
2.6
1.6
1.3
1.3
1.6
2.0
2.9
2.8
2.0
1.7
1.9
2.1
1.8
1.6
1.4
1.6
1.7
1.2
1.2
0.3
41.4
Economic inputs were USD$2.75/lb Cu and USD$12.50 Moly, average recoveries 88% Cu, 46% Mo, payable metal 96.5% Cu, 97% Mo.
Note: Summation errors due to rounding
Results from these tests validated that the processing parameters for the current ore are adequate to
estimate recoveries in future push backs. No changes to the plant are required to successfully recover
copper-moly from the extended reserve base.
Page | 20
1.11 Environment
PVM has well-established environmental, health/industrial hygiene, and safety procedures and
protocols. These procedures adhere to federal and state requirements and to internal Capstone
guidance to reduce impacts to the environment and to provide a safe work environment for employees
and contractors. Numerous site characterization studies have been completed at PVM to support
operations, environmental permitting efforts, closure planning, and other investigations. PVM is subject
to health and safety regulations under the supervision of the Mine Safety and Health Administration
(MSHA), Arizona State Mine Inspectors Office (ASMIO), Arizona Department of Transportation, and
other federal and state agencies. Capstone is committed to its employees and to the communities in
which it works to operate under high standards of corporate safety, environmental and social
responsibility. PVM has established relationships with the local communities and stakeholders;
communication channels are in place for direct interaction with stakeholders as required.
1.13 Permitting
The major authorizations permitting and governing operations for PVM include an APP, Air Quality
Permit, Arizona Pollutant Discharge Elimination System (AZPDES) Individual permit, and Multi-Sector
General Permit (MSGP) for storm water discharge all issued by ADEQ, a MLRP approved by ASMIO, and a
Plan of Operations (POO) approved by the USFS.
Page | 21
PVM has all of the necessary permits to conduct mining activities through LOM with the exception of
renewal and consolidation of land use authorizations that are being developed for the USFS and a future
amendment to the APP to address the decommissioning and closure of the leaching facilities and the
construction of a future planned facilities. The POO compiles several special use permits and other
authorizations for PVM to use USFS lands adjacent to the private lands where mining activities occur.
The proposed expansion of the existing tailings facility and pit onto USFS lands will be included in the
land use renewal and consolidation Plan of Operations application and will initiate National
Environmental Policy Act (NEPA) reviews. The need for a Clean Water Act Section 404 Permit will be
determined during that time. These reviews consider input from PVM, USFS, other regulatory agencies
and the public.
Life of mine average C1 cost including TC/RC and concentrate transportation cost is estimated to be
$2.05/lb of payable copper.
The LOM sustaining capital costs have been estimated for the project operating until 2039 and are
summarized in Table 1-6. Including capital into the C1 calculation results in an average all-in cost of
$2.29/lb copper payable for the life of the project.
Table 1-6: Capex Cost Summary
Item
Site Sustaining Costs
Mine Equipment, Purchases and Rebuilds
Mine Equipment Component Replacements
Tailings Upgrades
Total Capex
Units
US$M
US$M
US$M
US$M
US$M
Page | 22
Industry standard methods for estimating resources, reserves, operating and sustaining capital
costs have been used.
Mineral resources have been estimated at 1,420 million tonnes of measured and indicated
material averaging 0.30% total copper and 0.007% molybdenum.
Mineral reserves have been estimated at 473.8 M tonnes of combined proven and probable
material averaging 0.31% total copper and 0.009% molybdenum.
Expansion of the tailings and waste storage facilities are required to support the extended life of
mine plan, which will require modified permits and additional land.
The two major items required to execute the extended mine life are an amendment to the
current APP and approval of amended consolidated US Forest Service POO.
While there are significant risks with mining projects, many of those risks are mitigated by being in
production and the required infrastructure already in place. The major risks remaining that could affect
the execution of this study include:
Financial market conditions, including supply, demand and prices of base metals, goods and
services.
Regulatory and permitting environment complexities, changes and delays
Droughts and/or regulatory changes impacting water supply
1.17 Recommendations
Key recommendations have been noted below:
Actual vs predicted ore reconciliations should be carefully evaluated in the short and medium
term to determine if additional drilling is required.
Ensuring the recommended pit slope angles are achieved is one of the primary keys to success
of this plan. This is to be accomplished through ongoing geotechnical mapping and monitoring
the effectiveness of slope depressurization. Drilling programs may be required to increase
confidence levels of predictions.
Continue efforts to improve operating efficiency of all equipment.
An evaluation of bottlenecks limiting production above 56,000 tonnes per day.
Monitor phreatic levels in the tailings storage facilities to ensure they are within design
standards.
Initiate environmental analyses and the permitting process in 2016.
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2 Introduction
2.1 Overview
This technical report was prepared by Capstone Mining Corp. to disclose mineral resources and reserves
and operational plans for the mine. The technical report conforms to NI 43-101 standards with an
effective date of 01 January 2016.
Capstone is a leading intermediate exploration and mining company with a focus on copper production.
Capstone is based in Vancouver, British Columbia, and owns three operating mines located throughout
North America. These include PVM in Miami, Arizona; Cozamin Mine in Zacatecas, Mexico; and Minto
Mine in Yukon, Canada. Capstone is listed on the Toronto Stock Exchange under the symbol CS.
Designation(s)
Company
Section(s)
1.1-1.3, 1.14-1.17, 2 - 6,
18.1, 19, 21.1.2, 21.1.3,
21.2.1, 22, 24, 25, 26
1.11, 1.12, 1.13, 20, 23
Gregg Bush
P. Eng
Corolla Hoag
CPG, SME-RM
Tony Freiman
PE
Garth Kirkham
P.Geo, FGC
Kenneth W. Major
P. Eng
John Marek
PE, SME-RM
Page | 24
Mr. Tony Freiman has been involved in PVM since 1997 and visits PVM at least on a quarterly basis to
conduct tailings embankment audits. His latest visit was on 22 December 2015 to conduct a quarterly
audit and discuss future work scopes with PVM staff.
Mr. Garth Kirkham most recently visited the property on the 16th and 17th of April 2015 and previously
on 14 May 2013. In his trips, he has inspected the mine site infrastructure, core logging and processing
facilities, pit, outcrop and core storage facilities.
Mr. Ken W. Major last visited PVM on 21 October 2015 to inspect the fine crushing circuit and discuss
recent operational achievements and obtain recent data.
Mr. John Marek last visited PVM on 19 June 2015 to meet with PVM engineering staff to discuss new
mine plans, equipment productivities and costing estimates.
Name
Arizona Department of Environmental Quality
Arizona Department of Water Resources
silver
Amec Foster Wheeler
Aquifer Protection Permit
acid-soluble copper
Arizona State Mine Inspectors Office
Arizona Pollutant Discharge Elimination System
BHP Billiton Ltd.
Bureau of Land Management
Bond ball work index
Page | 25
Acronym /
Abbreviation / Symbol
CAA
Capstone
CIM
Cu
Cu-Mo
CWA
ESA
F
FLEET
FMI
FOB
FOS
FR
ft
G&A
gpm
hp
HSEC
IMC
IT
K tons
K tonne
kW
kWh
lb
LOM
M
Ma
MBWi
mi2
MLRP
mm
Mo
MoS2
MSG
MSHA
M tonnes
M tons
mtpd
NEPA
Name
Clean Air Act
Capstone Mining Corp.
Canadian Institute of Mining, Metallurgy and Petroleum
copper
copper-molybdenum
Clean Water Act
Endangered Species Act
Fahrenheit
Flotation Economic Evaluation Tool
Freeport-McMoRan Copper & Gold Inc.
fine ore bin
factor of safety
Forest Road
foot
general and administrative
gallons per minute
horsepower
Health, Safety, Environment, and Community
Independent Mining Consultants, Inc.
information technology
kiloton (1,000 short tons)
kilotonne (1,000 metric tonnes)
kilowatt
kilowatt hour
pound
life-of-mine
million
megaannus (million years)
modified Bond work index
square miles
Mined Land Reclamation Plan
millimeter
molybdenum
molybdenum disulfide
Multi-Sector General
Mine Safety and Health Administration
million tonnes (metric)
million short tons
Metric tonnes per day
National Environmental Policy Act
Page | 26
Acronym /
Abbreviation / Symbol
NI 43-101
NPV
NSR
oz
PLS
POC
PV2
PV3
PVM
QA/QC
QP
Quadra
RC
ROM
RQD
Skyline
SMARRCO
SMU
SR 77
SRK
SRP
SWPPP
SX-EW
t
TC/RC
TCu
t/d
TNF
ton
tonne
tpd
tph
tpoh
TSF
US$
US 60
USACE
USFS
USFWS
V
Name
National Instrument 43-101 Standards of Disclosure for Mineral Projects
net present value
net smelter return
troy ounce
pregnant leach solution
point-of-compliance
Pinto Valley Phase 2 Study (PFS mine life to 2026)
Pinto Valley Phase 3 Study mine life to 2039
Pinto Valley Mine
quality assurance / quality control
Qualified Person
Quadra FNX Mining Ltd.
reverse circulation
run-of-mine
rock quality designation
Skyline Assayers and Laboratories
San Manuel Arizona Railroad Company
selective mining unit
State Route 77
SRK Consulting (U.S.), Inc.
Salt River Project
Stormwater Pollution Prevention Plan
solvent extraction and electrowinning
metric tonne
treatment charge / refining charge
total copper
metric tonnes per day
Tonto National Forest
short ton (2000 lb)
metric tonne (1000 kg)
tonnes per day
tonnes per hour
tonnes per operating hour
tailings storage facility
US Dollars
US Highway 60
US Army Corps of Engineers
US Forest Service
US Fish and Wildlife Service
volt
Page | 27
Acronym /
Abbreviation / Symbol
VFD
WRI
WWTP
yd
yr
Zn
~
Name
variable frequency drive
WestLand Resources Inc.
wastewater treatment plant
yard
year
zinc
approximately
degrees
microns
standard deviation
Explanation
Alluvium
Clay, silt, sand, gravel, or similar material deposited by running water.
Hydrothermal alteration that introduces clay minerals, including kaolinite,
Argillic
smectite, and illite.
Assay
The chemical analysis of mineral samples to determine the metal content.
Biotite
Common phyllosilicate mineral within the mica group.
Bornite
A copper iron sulfide mineral with a chemical composition of Cu5FeS4.
A rock composed of broken fragments of minerals or rock cemented
Breccia
together by a fine-grained matrix.
Capital expenditure
All expenditures that are not classified as operating costs.
Chalcopyrite
A copper iron sulfide mineral with a chemical composition of CuFeS2.
A unit-less statistical measure of the dispersion of the data set normalized to
Coefficient of variation
the mean.
Collar
The mouth or opening of a borehole.
A combination of more than one sample result to provide an average result
Composite
over a larger distance.
A metal-rich product resulting from a mineral enrichment process such as
Concentrate
gravity concentration or floatation, in which most of the desired mineral has
been separated from waste material in the ore.
Cretaceous
A geological period from 145 Ma to 66 Ma.
The initial process of reducing ore particle size in order to render it more
Crushing
amenable for further processing.
The level of mineral in an ore below which it is not economically feasible to
Cutoff grade
mine it.
Diabase
A fine-grained mafic igneous rock with fine plagioclase crystals.
Dilution
Unwanted waste that is mined with ore.
Dip
The angle of drilling (or of a structure) relative to horizontal.
Disulfide
A sulfide containing two atoms of sulfur in its molecule or empirical formula.
Pinto Valley Mine Life Extension Study, February 2016
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Term
Ecotone
Eocene
Fault
Galena
Gangue
General Mining Law of
1872
Grade
Histogram
Hypogene
Igneous
JORC
Kriging
Lithological
Mean
Mineral Reserve
Mineral Resource
Explanation
A transitional area of vegetation between two different plant communities,
such as forest and grassland, with some characteristics of each.
Geologic epoch (56 Ma33.9 Ma). A subpart of the Paleogene period (23.03
Ma66 Ma).
The surface of a fracture along which movement has occurred.
A natural mineral form of lead sulfide, with a chemical composition of PbS.
A nonmetallic or worthless metallic mineral associated with the ore
minerals.
US law that authorizes and governs prospecting and mining on federal public
lands.
The measure of concentration of a mineral within mineralized rock.
Diagrammatic representation of data distribution by calculating the
frequency of occurrence.
Applied to mineral deposits or ore deposits formed by ascending hot waters.
Primary crystalline rock formed by the solidification of magma.
Joint Ore Reserves Committee. A professional code of practice that sets
minimum standards for the public reporting of mineral exploration results,
mineral resources, and ore reserves.
Statistical concept in which data at certain locations help to estimate a value
for a point that has not been sampled. Kriging weighs known grades such
that variation of the estimation is minimized and the standard deviation is
equal to zero.
Geological description pertaining to different rock types.
Arithmetic average.
A Mineral Reserve is the economically mineable part of a Measured and/or
Indicated Mineral Resource. It includes diluting materials and allowances for
losses, which may occur when the material is mined or extracted and is
defined by studies at Pre-Feasibility or Feasibility level as appropriate that
include application of Modifying Factors. Such studies demonstrate that, at
the time of reporting, extraction could reasonably be justified. The reference
point at which Mineral Reserves are defined, usually the point where the ore
is delivered to the processing plant, must be stated. It is important that, in
all situations where the reference point is different, such as for a saleable
product, a clarifying statement is included to ensure that the reader is fully
informed as to what is being reported.
A Mineral Resource is a concentration or occurrence of solid material of
economic interest in or on the Earths crust in such form, grade or quality
and quantity that there are reasonable prospects for eventual economic
extraction. The location, quantity, grade or quality, continuity and other
geological characteristics of a Mineral Resource are known, estimated or
interpreted from specific geological evidence and knowledge, including
sampling.
Page | 29
Term
Milling
Molybdenum
Nugget
Pluton
Population
Porphyry
Protore
Pyrite
Sample
Sedimentary
Sill
Skarn
Smelting
Sphalerite
Stockwork
Strike
Sulfide
Supergene
Tailings
Thickening
Variation
Variogram
Vein
Vug
Explanation
The process by which ore is crushed, ground, and subjected to physical or
chemical treatment to extract the valuable metals to a concentrate or
finished product.
A silvery-white, very hard, metallic element in the chromium group. Used in
nickel-based alloys that are heat- and corrosion-resistant.
The variability in the results of a sample taken repeatedly from the same
location.
A body of igneous rock that cools below the surface of the earth.
In geostatistics, a population formed from grades having identical or similar
characteristics. Ideally, one given population is characterized by a linear
distribution.
An igneous rock consisting of large-grained crystals in a fine-grained matrix.
The rock below the sulfide zone of a supergene enrichment deposit.
An iron sulfide with the chemical composition of FeS2.
Specimen with analytically determined grade values for the components
being studied.
Pertaining to rocks formed by the accumulation of sediments, formed by the
erosion of other rocks.
The variation value at which a variogram reaches a plateau.
Lime-bearing siliceous rock produced by the metamorphic alteration of
limestone or dolomite.
A high-temperature pyrometallurgical operation conducted in a furnace, in
which the valuable metal is collected to a molten matte or dor phase and
separated from gangue components that accumulate in a less dense molten
slag phase.
The chief zinc sulfide mineral with a chemical composition of ZnS.
An interconnected network of veins.
The direction of line that is formed by the intersection of strata surfaces
with the horizontal plane, always perpendicular to the dip direction.
A sulfur-bearing mineral.
Relating to the enrichment of mineral deposits by solutions moving
downward through the rocks.
Finely ground waste rock from which valuable minerals have been extracted.
The process of concentrating solid particles in suspension.
In statistics, the measure of dispersion around the mean value of a data set.
A graph that displays the variability of an element by increasing the spacing
between samples.
A sheet-like body of crystallized minerals intruded into a host rock.
A small cavity in rock, usually lined with a crystalline mineral incrustation.
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4.1 Location
This property is located at the west end of the Globe-Miami mining district, approximately 11 miles west
of Globe and 80 miles east of Phoenix, Arizona, at 332332 N and 1105815 W (Figure 4-1).
Figure 4-1: Pinto Valley Mine Location Map (Google Maps, 2015)
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accessible under the provisions of the US General Mining Law of 1872, subject to approval from the
USFS after the completion of an environmental analysis under NEPA. The document is supported by a
proposed Plan of Operations governing portions of the property. Use of the fee lands and patented
mining claims and mill sites are governed by an MLRP and an APP, both issued by the ADEQ.
The core of PVM consists of 69 patented lode mining claims. Also included in the property are 53
patented mill sites. Adjacent to and nearby the patented claims are 329 unpatented lode mining claims
and mill sites. Most of the unpatented mining claims and mill sites were staked on federal land
administered by the USFS, but a limited number of the unpatented mining claims and mill sites are on
federal land administered by the Bureau of Land Management (BLM). Seven parcels of fee (private) land
are associated with the property.
Capstone owns the patented mining claims and fee land parcels, which are private lands that provide
the owner with both surface and mineral rights. The fee lands are located by legal description and
recorded at the Gila County Recorders Office. The patented mining claims, mill sites, and fee lands are
subject to annual property taxes. As long as the property taxes are paid annually on these claims, there
is no expiration date.
4.4 Permitting
All required permits for current operation to 2026 have been obtained and are current except for the
USFS consolidated Plan of Operations, which is in the process of being amended. New permits are
required to extend the operation to 2039. Refer to Section 20 Environmental Studies, Permitting, and
Social or Community Impact for detailed permit information, including a list of required permits. The
current key environmental items required to extend operations to 2039 are a modified:
4.5 Royalties
There are 30 unpatented lode claims located outside of the PVM property boundary that have a 2% net
smelter return (NSR) royalty. The proposed mine plan does not impact those claims, and as such, no
royalty payments are expected.
Page | 33
geology.com 2014
Page | 34
5.4 Physiography
PVM is located in east-central Arizona, in the structural transition zone between the Sonoran section of
the Basin and Range physiographic province to the south-southwest and the Colorado Plateau to the
north. The terrain surrounding the mine property is generally mountainous, dominated by sharp
landforms and prolific exposures of a variety of bedrock formations present in the region.
PVM lies entirely along the eastern flank of Pinto Creek, with numerous southwest-trending to
northwest-trending ephemeral Pinto Creek tributaries crossing the property. Most of the headwaters of
these tributaries originate along a regional surface water divide that runs north to south near the
eastern PVM property line. All surface water runoff from the site ultimately flows into Pinto Creek, just
west of the boundary of the property. Pinto Creek flows from the south to the north into Roosevelt
Lake, an artificial impoundment constructed along the Salt River.
PVM is near the boundary of areas mapped as the Interior Chaparral biotic community and the Arizona
Upland subdivision of Sonoran desert scrub biotic community.
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6 History
The Globe-Miami district is one of the oldest and most productive mining districts in the United States,
with its first recorded production occurring in 1878. Since that time, more than 15 billion pounds of
copper have been produced in the Globe-Miami mining district. Prior to the construction of PVM, a
chalcocite-enriched zone of the deposit was mined from 1943 until 1953 as the Castle Dome
underground mine.
The Pinto Valley open pit mine and concentrator went into production in 1974. The SX-EW plant began
processing PLS from the leach dumps in 1981. In February 1998, mining and milling operations were
suspended and environmental permits were maintained during the suspension of operations, as were
the water and electrical systems. SX-EW facilities and cathode copper production continued during the
suspension of mining and milling operations.
The mine has had two restarts since the 1998 shutdown. The mine resumed sulfide operations in mid2007 for 18 months to January 2009 and then went into care and maintenance with only leaching
operations continuing. The second restart began in December 2012 and included extensive
rehabilitation of the site and purchase of a new mining fleet. PVM produced 143 M lbs of copper in
2014 and 134 M lbs of copper in 2015.
Ownership of Pinto Valley has changed numerous times since its inception. At the time of construction
and commissioning, it was owned by Cities Service Company, who had recently merged with Tennessee
Corporation. Occidental Petroleum Corporation acquired Cities Service Company in late 1982 and sold
the Miami operations to Newmont Mining Corporation in 1983. At this time, the company's name was
changed to Pinto Valley Copper Corporation. In 1986, Newmont merged the Pinto Valley Copper assets
into Magma Copper Company holdings, and Pinto Valley Copper became the Pinto Valley Mining
Division of Magma Copper Company. In 1995, Broken Hill Proprietary Company Limited purchased
Magma Copper Company. With the merger of Broken Hill Proprietary Company Limited and Billiton in
2001, the Pinto Valley Mining Division became Pinto Valley Operations of BHP. In 2013, Capstone
purchased Pinto Valley Operations, now referred to as Pinto Valley Mine
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Formation of the deposit was associated with the intrusion of small bodies and dikes of granite porphyry
and granodiorite that are of similar composition and age as the Schultze Granite (~61.2 Ma). Copper
mineralization has been dated at 59.1 Ma (Creasey, 1980).
Primary sulfide ore minerals consist of pyrite, chalcopyrite, and minor molybdenite that occur in veins
and microfractures, and less abundantly as disseminated grains, predominantly in biotite sites. The ore
zone grades outward into a pyritic zone with higher total sulfide content, and the ore zone grades
inward toward the low-grade core, which has lower total sulfides. Molybdenum distribution generally
reflects copper distribution, with higher molybdenum values usually found in the higher-grade copper
zones.
Sulfide deposition is controlled to some extent by the host rock. For the most part, the host is Lost
Gulch Quartz Monzonite and porphyritic quartz monzonite, which are similarly altered and mineralized.
The sulfide content decreases in Precambrian aplite intrusions. Aplite usually contains less than 0.25%
copper, whereas adjacent quartz monzonite may have as much as 0.6% copper. The deficiency of
copper in aplite is probably due to the absence of biotite, which makes up approximately 7% of quartz
monzonite. Disseminated chalcopyrite shows an affinity for biotite, where it is seen to be either
disseminated through the biotite or partially replacing it. Additional chalcopyrite is present in veins that
cut both rock types.
Small intrusions of granite porphyry extend beyond the main mapped unit mimicking the pit outline.
While quartz monzonite constitutes ore (more than 0.3% copper), the granite porphyry does not usually
contain ore grades (~0.15%0.2% copper). Granite porphyry contains sulfide veins, but generally lacks
disseminated sulfides in biotite sites.
The shell has the appearance of a hook in plan view and mimics the pit outline. Rock located south of
the ore has decreasing sulfide content and numerous barren quartz veins. This area has been
interpreted as a low-grade core, and this low-grade zone corresponds spatially with the granite
porphyry, which is seen as a poor lithologic host for ore-grade mineralization elsewhere in the deposit.
Rock located north of the ore has progressively more abundant, late-stage quartz-pyrite-sericite veins.
The South Hill Fault cuts the ore shell and associated alteration to the south. The shallow, dipping Flat
Fault cuts off the ore beneath the southern limb of the grade shell. The sections suggest that the
original configuration of the copper zone was that of a distorted, inverted bowl, with its long axis striking
approximately N80E.
The deposit is bound by post-mineral faults. The South Hill Fault is on the south side of the deposit, the
Jewel Hill Fault is on the east side, and the Gold Gulch Fault is on the west side. Minor post-mineral
normal displacement has taken place on the Dome Fault, a pre-mineral structure that strikes
northeasterly across the north limb of the deposit.
Diabase forms thin dikes in pit exposures. These dikes commonly contain higher copper content than
the surrounding quartz monzonite. In the eastern part of the deposit, a diabase sill lies at the top of the
ore; west of the Gold Gulch Fault, diabase is mineralized by pyrite and chalcopyrite veins with abundant
magnetite near mineralized granite porphyry.
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A geological mapping exercise of PVM was conducted in early 2012 using the Anaconda method,
producing three geographic information system-registered layers showing geology, alteration style, and
mineralization.
BHP 2012
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Figure 7-2: Generalized Columnar Lithology Sections for the Castle Dome Area
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7.1.11 Alluvium
Tertiary and Quaternary alluvium is a poly-lithologic detritus of some boulder-sized, but mostly cobbleand more finely sized, poorly sorted and poorly cemented sediments. Detritus lines the low-lying areas,
commonly occurring at the base of steep slopes undergoing active erosion. Components often show
evidence of reworking, resedimentation, and welding by modern calcrete and silcrete cements.
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Pinto Valley district is classified into pre-, intra-, and post mineralization stages. Descriptions of copper
bearing intrusive events are detailed below.
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Macroscopically, this rock is pinkish-brown, with phaneritic, inequigranular coarse texture and anhedral
quartz crystals (25%), anhedral-subhedral biotite (7%), anhedral muscovite (3%), subhedral-euhedral
orthoclase (35%) with some phenocrysts up to 60 mm, and subhedral euhedral plagioclase (38%).
There has been a series of aplitic phases related to Ruin Granite emplacement; the highest
concentration of these is in the southeastern sector of the outcrop. Numerous small dikes also occur
within the PVM pit. The aplitic intrusive units are pinkish-brown and dominated by equigranular quartz.
They have a fine grained, sugary texture and are dominated by potassic feldspar. The intrusive complex
related to the Ruin Granite is Precambrian in age (Creasey, 1980).
7.2.1.4 Diabase
Diabase is a sub-volcanic Cretaceous or later unit that is most prevalent in the northern area of the
project; but it also occurs as sills and minor dikes throughout most of the project area. This unit
occupies approximately 0.58 mi2 of the project area. The diabase most commonly intrudes Precambrian
units, such as the Apache Group sediments and Ruin Granite. The unit is generally covered by post
sedimentary units, including the Martin, Escabrosa, and Naco Limestones, and is partially covered by
Gila Conglomerate and the Apache Leap Tuff.
This unit is of fine- to medium-grained mafic composition, bearing pyroxene and hornblende mafic
minerals, and lesser plagioclase. This unit has different phases, with early medium to coarse textures
that range to later, fine-grained textured intrusions.
This unit commonly contains 1%2% disseminated pyrite and trace chalcopyrite, but it will bear stronger
sulfide content, especially chalcopyrite, when proximal to a porphyritic source.
Page | 44
exist in the western section of the pit, with a predominant northeast trend. This early granite porphyry
unit has been observed intruding the country rock Ruin Granite, and as having been crosscut by the
intramineral late granodiorite phases.
Macroscopically, the rock is pinkish-brown to gray, phaneritic, and of porphyritic texture with an
inequigranular grain shape. Mineral composition comprises 40% phenocrysts with approximately 60%
groundmass, characterized by aggregates of quartz and feldspar: quartz eye phenocrysts (3%7%) are
euhedral-subhedral and range between 2 and 4 mm in size; books of biotite (5%8%) are subhedral and
range between 1 mm and 3 mm; orthoclase feldspar (20%25%) is euhedral subhedral and ranges
between 3 mm and 5 mm; and plagioclase (60%65%) is subhedral-euhedral, ranging between 2 mm
and 5 mm.
A number of additional observations of this units magmatic-hydrothermal activity suggests this
intrusive phase is responsible for introducing mineralization into the PVM system. A clear relationship
exists between the development of strong late magmatic and early hydrothermal potassic alteration (Kfeldspar, biotite, and silica). Early hydrothermal activity has also produced extensive quartz A vein
development, along with sulfide mineralization where chalcopyrite content is greater than pyrite. The
presence of quartz B veinlets with minor molybdenite content also occurs in close proximity to the A
vein sets.
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mm2 mm); books of biotite (5%, subhedral, 1 mm2 mm); K-feldspar (10%, subhedral, 2 mm3 mm);
quartz (12%); and crystals of plagioclase (68%, subhedraleuhedral, 2 mm3 mm).
This unit exhibits only minor mineralization as 1%2% disseminated pyrite chalcopyrite; thin quartz
veins exist but are generally unmineralized. Only weak hydrothermal alteration was observed and
described as a weak potassic alteration; this suggests that this intrusive unit was injected late in the
Laramide intrusive history. Crosscutting relationships indicate that this unit truncates the late magmatic
potassic event.
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8 Deposit Types
PVM is classified as a copper-molybdenum porphyry system. Extensive literature exists on porphyry
deposits due to their large size and economic importance. The following description of a porphyry
deposit is from a summary by Sillitoe (2010).
Porphyry deposits are typically centered on polyphase stocks and porphyry dyke swarms, with skarn
deposits formed adjacent to and epithermal deposits above the porphyry mineralization. The metal
endowment of a porphyry system is related to the geochemistry of the oxidized magmas that contribute
to the formation of the stocks and dykes, with gold and/or molybdenum commonly found in association
with copper. Porphyry deposits typically occur in association with Mesozoic and Tertiary intrusions,
probably as a result of poor preservation of older rocks.
Porphyry systems are typically zoned from a potassic-altered (biotite-potassium feldspar) core overlying
barren, calcic-sodic-altered rock, upward through phyllic altered (sericite or chlorite-sericite) margins to
propylitic-altered (chlorite-epidote) rocks (Figure 8-1). Porphyry systems also grade upward into
advanced argillic and silicic alteration related to epithermal mineralization. Alteration zoning may be
complex and overlapping due to successive injections of magma into country rocks. The vertical
distance between porphyry mineralization and overlying epithermal mineralization may range from
1,000 yd to several thousand yards.
Hypogene copper mineralization is disseminated and veinlet-hosted in addition to being zoned from
bornite-rich in the core through chalcopyrite to pyrite in distal areas. Magnetite (in copper-gold
porphyries) and molybdenite (in copper-molybdenum porphyries) are common accessory minerals.
Quartz veins and veinlets as stockworks and sheeted arrays are present throughout these systems, and
typically occur in a sequence from early quartz-feldspar A veins, through quartz-sulfide (mainly
chalcopyrite-molybdenite) B veins with potassic altered margins, to late sulfide-dominant (primarily
pyrite) D veins with phyllic altered margins (Gustafson and Hunt 1975), as shown in Figure 8-1.
Veining in copper-gold deposits may differ slightly, with quartz-magnetite-chalcopyrite and magnetitedominant M veins present or dominant (Arancibia and Clark 1996).
Page | 48
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Figure 8-2: Generalized Alteration-Mineralization Zoning Pattern for Telescoped Porphyry Copper
Deposits (Sillitoe, 2010)
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BHP 2012
Figure 8-3: Pinto Valley Mine Alteration and Mineralization Plan Map
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Due to the large amount of disseminated pyrite in most porphyry systems, these systems are susceptible
to supergene weathering and leaching. Copper is oxidized and leached from areas above the water
table and deposited as chalcocite and other supergene copper minerals at or near the water table,
leading to enrichment in copper grades. Supergene chalcocite enrichment can increase grades locally by
200% to 300% or more, with a significant impact on the overall economics of these deposits.
Proximal skarn deposits are typically located laterally from porphyry deposits where the igneous body
intrudes calcareous host rocks (Meinert 2000). They consist of replacement bodies within (endoskarn)
or marginal to (exoskarn) the causative intrusion. Skarn may be particularly well developed in
limestones and other calcium or carbonate-rich rocks. Skarn alteration assemblages include garnet,
pyroxene, wollastonite, magnetite, actinolite, pyrite, magnetite, and chalcopyrite.
Copper-molybdenum porphyry and skarn mineralization are all found in close proximity within the PVM
area. Skarn is a relatively minor unit in comparison the scale of the overall porphyry deposit.
Mineralization is associated with an overlap of phyllic and potassic alteration, a supergene chalcocite
blanket, and adjacent areas of hornfelsing and skarn alteration.
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9 Exploration
No exploration has been completed since the mine was purchased in 2013.
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10 Drilling
Drilling documentation was limited to internal reports, and there were no other listings for vintage data,
methods used, or pre 2010 drilling procedures.
The pre-2006 PVM drilling programs comprised a combination of core, rotary, and churn drillholes.
Churn holes defined much of the early Castle Dome mineralization, which has been mined out. PostCastle Dome holes were drilled on an original spacing of 400 ft east-west and 200 ft north-south. Later,
drilling was done to infill the original grid to 200 ft spacing in some areas. Drilling that has occurred
since the 1986 construction of the block model includes 10 core holes (E52 through E61) and 3 RC rotary
holes (RC62 through RC64) drilled in 1992. From January 1996 to April 1997, 67 RC exploration and infill
holes were drilled: 48 RC holes (AD- and NR-Series totaling 29,665 ft) drilled in 1996 and 19 RC holes
(WW- and 97-Series totaling 8,520 ft) drilled in 1997. The WW- and 97 Series were drilled in the interior
pit and through the Gold Gulch and Continental Faults. Seven of the exploration holes were drilled east
of the existing pit; these laid the groundwork for future plans of an east pit expansion, known as the
Satellite Pit.
The current PVM drill hole database contains a significant amount of drilling that defined the grades in
the block model that have been mined out, especially as they relate to the historic Castle Dome mining
activity.
All drillhole collar locations were surveyed. The majority of the drillholes are vertical and, therefore, do
not have downhole surveys. However, a majority of the inclined holes do have downhole surveys.
Drilling campaigns from 2006 to 2008 had various purposes, including delineation, exploration,
geotechnical, and resource classification upgrade drilling. The campaigns included 18 G-Series
geotechnical holes and 11 HW-Series holes drilled in 2007; and 17 PZ-Series holes, 17 S-Series holes, 24
B-Series holes, and 4 DH-Series holes drilled in 2008.
The drilling campaign in 2010 focused on exploration, while the 2011 and 2012 campaigns focused on
infill drilling for resource classification upgrade in support of restarting operations. Ten holes were
drilled in 2010, 40 holes were drilled in 2011, and 64 holes were drilled in 2012.
In 2014, 10 geotechnical holes, and in 2015, an infill RC program consisting of 43 holes aimed at 2016
and 2017 production, as well as 3 geotechnical holes were drilled and assayed. Data from these drill
programs have been incorporated into the 2015 block model.
A total of 897 drillholes were used for the PVM 2015 resource estimate model.
Page | 54
assay values in the Pinto Valley database have been reliably entered;
total copper assays in the Pinto Valley database are reproducible and can be considered
representative within normally-accepted limits of error;
total copper assays in holes below the current pit base can also be considered
representative within normally-accepted limits of error, except in the deeper parts of some
RC holes where they may be low-biased. However, using these assays to estimate grades in
the model is acceptable because they will tend to provide a conservative rather than an
overly optimistic estimation of grades;
Page | 55
acid soluble assays in the Pinto Valley database vary considerably depending on the drilling
campaign and;
reserves, resources, and production at Pinto Valley are reported as sulfide copper, which is
calculated by subtracting acid soluble copper from total copper. Because biases exist in the
acid soluble copper assays, this procedure generates sulfide copper values that are biased
relative to each other as a function of the drilling campaign. However, sulfide copper values
are only slightly lower than overall total copper values, so it can be reasonably assumed that
the sulfide copper values are also globally correct within normally-accepted limits of error.
As part of the start-up Feasibility Study done in 2006, a QA/QC program was conducted on 101
randomly selected drillhole assay interval pulp samples and 15 randomly selected core assay intervals.
Samples were sent to Skyline Assayers and Laboratories (Skyline Labs) in Tucson, Arizona to be analyzed
for total copper and acid soluble copper. Skyline Labs was instructed to analyze the samples for acid
soluble copper using BHP lab procedures. Before the lab processed these samples, BHP provided
instructions for the pulp sample analytical procedures and also provided a sequential pulp sample list.
Included in this QA/QC program for the Feasibility Study were seven sets of a known National Institute
of Standards and Technology (NIST) standard pulps: Copper Ore Mill Heads standard at 0.84% Total
Copper, and a Copper Mill Tails standard at 0.091% Total Copper. These known standard sets were
inserted in sequential order for analysis preceding the 15th pulp sample in the analytical run. All relative
precisions are discussed at a 95% confidence level (estimated using the Students T-distribution).
The analytical results from the standard samples are shown in Figure 11-1; both include standards
supplied by the Pinto Valley Operations (PVO) project team and those used by Skyline Labs for internal
QA/QC. A relative bias of -2% (Skyline Labs is lower than acceptable) is determined from these samples,
with a relative precision of 4% for the standards greater than 0.1% Cu and 10% for the reference sample
containing 0.09% Cu. These results provide an estimated precision for pulp and instrumentation
sampling.
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Note: Samples are shown in sequential order of analyses, but are grouped by drillhole identification;
percentages refer to %TCu.
Figure 11-2: Relative Half Differences in Replicate Pulp Analyses (compares original PVM copper assays
with Skyline repeats)
Table 11-1 shows the statistical summaries of the 2006 QA/QC program on replicate pulp assays, broken
down by drilling campaign. Although similarities exist between the WW-, RC-, and E-Series holes, there
are only limited samples from the latter two series, and these tend to be low-grade. Because the WWand 97-Series holes were both drilled at approximately the same time and were drilled at a much
different time than the remaining holes, these holes should be categorized as having similar laboratory
quality practices. The AD-Series holes seem to have been assayed under different protocols and are
grouped with the E-Series because of their similar drilling dates. Additional information presented
below further suggests this grouping for the purpose of estimating analytical uncertainty. Based on the
replicate pulp program, the AD- and E-Series holes have a relative bias of +2.5% (original assays higher
than Skyline) and precision of 6%, compared to the remaining holes that have a bias and precision of
approximately 1.5% and 9%, respectively.
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Table 11-1: Analytical Results for Replicate Pulp Assays 2006 Pinto Valley Mine QA/QC Program
Drillhole
Program
WW-, RC- &
E-Series
AD-Series
97-Series
All Samples
*
Data
Subset
All Data
>0.1%
TCu Only
All Data
>0.1%
TCu Only
All Data
All Data
>0.1%
TCu Only
No.
29
23
0.313
0.303
50
0.277
0.291
45
0.302
0.318
22
101
0.300
0.275
0.290
0.278
90
0.304
0.307
Linear Fit
Slope
0.95
1.05
0.91
1.00
Average
RHD*
ARHD
0
0.049
Relative
Precision
0.138
0.017
0.035
0.103
0.016
0.034
0.135
0.025
0.025
0.058
0.016
0.004
0.029
0.037
0.08
0.123
0.005
0.029
0.074
Fifteen field duplicates of split core from drillholes lying in sequence between E-21 and E-60 are
summarized in Figure 11-3. The relative bias between the two core halves is nearly identical to that
seen in lab assays for the AD-Series holes, with PVM core assays approximately 3% higher grade than
the replicate values. The relative precision of the two core halves at copper grades above 0.1% TCu is
slightly more than double the analytical precision of AD-Series pulp replicates. The AD-Series replicate
pulp assays plot on a near-perfect least squares linear fit from the E-Series duplicate core assays (Figure
11-3), which suggests an excellent correlation between field duplicates.
Page | 59
Page | 60
Table 11-2: Total and Stepwise Sampling Estimates and Analytical Variances
Drillhole Samples
Core Sampling Variance
(E-Series core duplicates)
PVM Analytical Variance
(AD-Series pulp replicates)
Skyline Analytical Variance
(reference material)
RC Variance
(WW- and 97-Series)
PVM Analytical Variance
(WW- / 97-Series pulp
replicates)
Skyline Analytical Variance
(reference material)
No.
12
0.032
0.0760
0.00577
0.006
0.070
0.00495
45
0.025
0.0287
0.00082
0.001
0.028
0.00079
0.027
0.0058
0.00003
0.027
0.006
0.00003
Unknown
43
0.017
0.0454
0.00206
0.044
0.045
0.00203
0.027
0.0058
0.00003
0.027
0.006
0.00003
The PVM QA/QC procedures have been based on leading practices as defined by BHP and used
throughout BHP's group of assets. These have been developed in conjunction with other BHP base
metal mines. These processes continue to be utilized on-site, to the best of the authors knowledge.
Prior to the 2010 through 2013 drilling campaigns, there is limited information with respect to the
molybdenum analyses and QA/QC. Charts shows the respective laboratory; Skyline and ALS Global,
results of the analyses for the field (Figure 11-4 and Figure 11-5), coarse (Figure 11-6 and Figure 11-7)
and pulp (Figure 11-8) duplicates. The molybdenum QA/QC illustrate that quality control measures used
at both laboratories are variable and that there is a relatively high failure rate for all analyses methods.
As there are no reference sample analyses (ie. Standards), it is difficult to ascertain whether the cause of
the issues and lack of analytical precision originate at PVM or at Skyline and ALS Global however with
both laboratories experiencing similar failure rates.
Page | 61
Page | 62
Page | 63
Page | 64
Page | 65
Page | 66
Assays are imported to the Capstone server for approval. This is done for each batch according to the
criteria above. The following procedures are used to approve the QA/QC for each batch.
1.
2.
Enter the Capstone data portal, and select the area, project, and batch list.
Review QA/QC results, particularly Company Standards, blanks, and Lab Standards, for
approval.
Review the field duplicates, coarse duplicates, pulp duplicates, and lab assay repeats as well. This
information is then compiled to generate a QA/QC report detailing any errors associated with the
splitting and crushing procedures for that particular batch.
All drilling since May 2015 update was performed with a comprehensive QAQC program in place that
included the regular submission of duplicate samples and blanks along with the in-house QAQC program
conducted by the analyzing lab and reported on all received assay certificates. Assay results were
routinely inspected when received to insure that all QAQC criteria were satisfied before results were
deemed acceptable and entered into acQuireTM. New assays incorporated into this resource estimate
included samples from the GTH-14, GTH-15, and PVRC-15 series for a total of 2,426 samples.
Blanks consisted of high purity silica chips and were inserted in the sample stream in order to detect any
contamination. A total of 60 blanks were inserted over the course of the drilling programs, with the vast
majority of these reporting below detection limit values for TCu and Mo. All analyses fall below the 5x
detection limit failure criteria (detection limits are 0.01% for TCu and 0.0005% for Mo) that have been
specified, meaning all blank analyses are considered acceptable.
Duplicate samples include field, coarse, and pulp duplicates, which are inserted in the sample stream to
test the variation between measurements at the various stages in the sample collection, preparation,
and analysis processes, respectively. Overall analytical variance for duplicate pairs inserted over the
course of the drilling programs can be seen in Table 11-3 and Table 11-4 for TCu and Mo, and display
expected trends of decreasing variance moving from field to pulp duplicates.
Table 11-3: Duplicate Pair Analytical Variance for %TCu
Average Mean Pair
Duplicate Type
Bias (%TCu)
Correlation Coefficient
Relative Difference (%)
Field
0.004
0.972
13.08
Coarse
-0.018
0.978
5.29
Pulp
-0.014
0.996
5.45
Table 11-4: Duplicate Pair Analytical Variance for %Mo
Average Mean Pair
Duplicate Type
Bias (%Mo)
Correlation Coefficient
Relative Difference (%)
Field
0.023
0.955
14.65
Coarse
-0.042
0.975
8.94
Pulp
0.025
0.974
8.77
A total of 183 field duplicates were submitted for analysis with a scatterplot of the results shown in
Figure 11-9 and Figure 11-10. Warning and error lines are set at respective 15% and 20% limits with
regard to the relative difference between duplicate pair assays. Returned TCu analyses show that 23
Pinto Valley Mine Life Extension Study, February 2016
Page | 67
duplicate pairs lie between warning and error limits and 27 lie outside of error limits, while Mo analyses
show that 7 duplicate pairs lie between warning and error limits and 39 lie outside of error limits.
A total of 74 coarse duplicates were submitted for analysis with a scatterplot of the results shown in
Figure 11-11 and Figure 11-12. Warning and error lines are set at respective 10% and 15% limits with
regard to the relative difference between duplicate pair assays. Returned TCu analyses show that 2
duplicate pairs lie between warning and error limits, and 4 lie outside of error limits; Mo analyses show
that 1 duplicate pairs lie between warning and error limits and 10 lie outside of error limits. This scatter
results in correlation coefficients of 0.978 and 0.975 for TCu and Mo, respectively, with average mean
pair relative differences (AMPRD) of 5.29 for TCu and 8.94 for Mo.
A total of 68 pulp duplicates were submitted for analysis with a scatterplot of the results shown in Figure
11-13 and Figure 11-14. Warning and error lines are set at respective 5% and 10% limits with regard to
the relative difference between duplicate pair assays. Returned TCu analyses show that two duplicate
pairs lie between warning and error limits, and three lie outside of error limits; Mo analyses show that
one duplicate pair lies between warning and error limits and nine lie outside of error limits. This scatter
results in correlation coefficients of 0.996 and 0.974 for TCu and Mo, respectively, with average mean
pair relative differences (AMPRD) of 5.45 for TCu and 8.77 for Mo.
SKYLINE
CuT_MEA_pct : Check Stage S
1.1
1.0
0.9
0.8
Check
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
Original
X=Y
Warning
Error
RMA Regression
Threshold
Normal
Warning
Error
Figure 11-9: Scatterplots showing Field Duplicates for %TCu for 2015 Drilling
Page | 68
SKYLINE
Mo_MEA_pct : Check Stage S
0.024
0.022
0.020
0.018
Check
0.016
0.014
0.012
0.010
0.008
0.006
0.004
0.002
0.000
0.000 0.001 0.002 0.003 0.004 0.005 0.006 0.007 0.008 0.009 0.010 0.011 0.012 0.013 0.014 0.015 0.016 0.017 0.018 0.019 0.020 0.021 0.022 0.023 0.024
Original
X=Y
Warning
Error
RMA Regression
Threshold
Normal
Warning
Error
Figure 11-10: Scatterplots showing Field Duplicates for %Mo for 2015 Drilling
SKYLINE
CuT_MEA_pct : Check Stage C
0.6
Check
0.4
0.2
0.0
0.0
0.2
0.4
0.6
Original
X=Y
Warning
Error
RMA Regression
Threshold
Normal
Warning
Error
Figure 11-11: Scatterplots Coarse Duplicates for %TCu for 2015 Drilling
Page | 69
SKYLINE
Mo_MEA_pct : Check Stage C
0.013
0.012
0.011
0.010
Check
0.009
0.008
0.007
0.006
0.005
0.004
0.003
0.002
0.001
0.000
0.000
0.001
0.002
0.003
0.004
0.005
0.006
0.007
0.008
0.009
0.010
0.011
0.012
0.013
Original
X=Y
Warning
Error
RMA Regression
Threshold
Normal
Warning
Error
Figure 11-12: Scatterplots Coarse Duplicates for %Mo for 2015 Drilling
SKYLINE
CuT_MEA_pct : Check Stage P
0.6
Check
0.4
0.2
0.0
0.0
0.2
0.4
0.6
Original
X=Y
Warning
Error
RMA Regression
Threshold
Normal
Warning
Error
Figure 11-13: Scatterplots Pulp Duplicates for %TCu for 2015 Drilling
Page | 70
SKYLINE
Mo_MEA_pct : Check Stage P
0.011
0.010
0.009
0.008
Check
0.007
0.006
0.005
0.004
0.003
0.002
0.001
0.000
0.000
0.001
0.002
0.003
0.004
0.005
0.006
0.007
0.008
0.009
0.010
0.011
Original
X=Y
Warning
Error
RMA Regression
Threshold
Normal
Warning
Error
Figure 11-14: Scatterplots Coarse Duplicates for %Mo for 2015 Drilling
In the QPs opinion, the sample preparation, analysis QA/QC and security protocols follow accepted
industry standards. Based on the data and results, it is the authors opinion that the complied database
is valid and of sufficient quality to be used for this mineral resource estimate.
Page | 71
12 Data Verification
Garth Kirkham, P.Geo., FGC, visited the property on May 14, 2013 and April 16-17, 2015. The site visits
included an inspection of the core logging facilities, offices, pit tour, outcrops, drill collars, core storage
facilities, core receiving area, and core sawing stations, and a tour of the major centers and surrounding
towns that are affected by the mining operation.
The tour of the offices and core logging and storage facilities showed a clean, well-organized,
professional environment. On-site staff led the author through its chain of custody and methods used at
each stage of the logging and sampling process.
The QP randomly selected four complete drillholes from the database and laid the core out at the core
storage area. Site staff supplied the logs and assay sheets so the author could verify the core and logged
intervals. The data correlated with the physical core, and no issues were identified. In addition, the
author toured the complete core storage facility, pulling and reviewing core throughout the tour. No
issues were identified and recoveries appeared to be very good to excellent.
The QP is confident that the data and results are valid, based on the site visit and inspection of all
aspects of the project; this confidence extends to the methods and procedures used. It is the opinion of
the independent author that all work, procedures, and results have adhered to best practices and
industry standards required by NI 43-101. No duplicate or verification samples were taken to verify
assay results, but the author believes that the work is being conducted by a well-respected, large, multinational company that employs competent professionals who adhere to industry best practices and
standards.
The QP also visited Skyline on 15 May 2013. The laboratory tour was performed by Jim Martin, Senior
Chemist and Arizona Registered Assayer (No. 11122), who provided a complete review of the laboratory
facilities, laboratory preparation procedures, instrumentation, assay methods, QA/QC protocols, and
reporting procedures. The laboratory appeared to be operated in a very professional manner, as is
expected from a widely used North American laboratory facility. Skyline, because of its long standing
service to many large copper mines, appears to specialize in and have extensive experience with the
assay processes and procedures for copper. Skyline has been ISO 17025 certified since 2008.
The reconciliation of production grades as compared to those defined by drill data (both legacy and
current) and predicted by the block model which resulted in excellent correlations particularly within
the core mine block. Reconciliation of the production data further away from the mine block,
particularly within the Castle Dome area were less favorable however an extensive remodeling of the
deposit was completed to rectify these discrepancies and are now within reasonable tolerances.
Page | 72
Page | 73
Based on simplified grinding calculations and using the Ruin Granite soft ore for the baseline
throughput projections were that there could be a 12% decrease in mill throughput for the Ruin Granite
hard ore and a 38% decrease in mill throughput for the Diabase ore. There is some limited control to
try to maintain throughput but this would require coarser grinds that could have a negative impact on
recoveries.
Table 13-1: Ore Lithological Distribution for the Life of Mine
Lithology
30 - Diabase
50 - Granodiorite
60 - Granite Porphyry
72 - Aplite
11 Ruin Granite
Grand Total
% by
Tonnage
2.9%
0.3%
2.4%
0.4%
94.1%
100%
Average BMWi
(kWh/mt)
17.1
13.1
15.0
13.8
14.1-14.9
14.5
Crushed ore is distributed to the fine ore bin for distribution to the 6 single stage ball mills. The ball
mills are 18ft x 21ft long with 4000hp motors. A review of the ball mills, and the ball mill operating
practices, has shown that the ball mills have the capability to operate using the full mill power draw.
Ball charging practices provide the ability to operate near or above the installed power.
Shift operating data for the crushing plant and grinding circuit have shown that the ball mill feed
(crushing plant product) F80, since September 2013 has been averaging about 11mm. These readings
are taken by the SPLIT System that uses digital analysis of the conveyor load to determine the size
distributions. A review of the cyclone overflow distributions for each of the grinding circuits indicates
that the grinding product, P80, has averaged about 280 microns.
A work index model based on the Bond ball mill work index equations was used to develop a throughput
model that estimated the plant throughput based on ore work index for varying F80 and P80 conditions,
Table 13-2.
Table 13-2: Bond Ball Mill Work Index Modeling (metric tonnes)
F80 =6.5mm / P80 F80 = 8mm / P80 = F80 = 9.5mm / P80 F80 = 8mm / P80 F80 = 11mm / P80
Wi
= 315m (TPD)
315m (TPD)
= 315m (TPD)
= 270m (TPD)
= 280m (TPD)
95%
24hr
95%
24hr
95%
24hr
95%
24hr
95%
24hr
12
69466 73122
64998
68419
60821
64022
59134 62246 56042
58991
13
64359 67746
60092
63254
56147
59102
54812 57696 51773
54498
14
59252 62371
55186
58090
51473
54182
50489 53146 47505
50005
14.3 57720 60758
53714
56541
50071
52706
49192 51781 46224
48657
15
54145 56995
50280
52926
46799
49262
46167 48596 43236
45512
15.1 53634 56457
49789
52409
46332
48770
45734 48141 42809
45062
16
49038 51619
45373
47761
42125
44342
41844 44046 38967
41018
17
43931 46243
40467
42597
37451
39422
37522 39496 34699
36525
17.3 42399 44630
38995
41048
36049
37946
36225 38131 33418
35177
18
38824 40867
35561
37433
32777
34502
33199 34946 30430
32032
Pinto Valley Mine Life Extension Study, February 2016
Page | 74
The PVM also provided an analysis of the monthly ore mined tonnage and related that to the drillhole
work index information for the zones mined. For August, September and October 2013 the average
work indexes from the mine block model were 14.8, 14.6 and 14.7 kWh/t respectively. Based on these
work indexes the model would have limited mill throughput to 49200 stpd (44700 mt/d), on a 95%
operating availability basis.
Various operating periods have been analyzed to evaluate the plant throughput. There has been a
steady improvement of plant operating time through 2013 and the grinding circuit availability has been
improving. Based on the instantaneous readings from the weightometers on the mill feed conveyors it
was estimated that the plant feed rate averaged about 400 short tons per hour per mill. Assuming the
mill availability will be 95% the estimated throughput is about 55000 short tons per day (50000 metric
tonnes per day). From this the indications are that the mill is operating at 10% higher throughput than
the work index model indicates.
A sample of mill feed was collected from a ball mill feed conveyor in January 2014 to confirm previous
observations. The sample was sent to ALS in Kamloops for testing. The sample was screened to
determine the feed size distribution and then the sample was subjected to Bond ball mill work index
tests at screen closing sizes of 106 and 300. Based on the mine plan and geological evaluation of the
mill feed it was believed that the feed sample could have had as much as 8% Diabase mixed with Ruin
Granite.
The test results showed:
13.1.2 Flotation
In October 2006 BHP completed a review of past metallurgical testwork. The compilation was made of
all test work that was conducted in the plant lab between 1992 and 1995, and of which the reports were
located in the PVM library. Figure 13-3 summarizes the grade-recovery relationship for rougher
flotation.
Page | 75
Page | 76
grind size, however, at higher percent solids rougher recovery becomes insensitive to grind size. It was
recommended to do additional testing and plant trials to validate these findings.
Open circuit flotation tests with regrinding of rougher concentrate and three cleaning stages were
performed on the metallurgy composite samples to evaluate the cleaning stage. Results showed that
the copper grade was in the range of 23.0 to 27.3% Cu and recovery was between 79.3 and 84.8%
copper.
In January 2013, eleven composite samples for a froth flotation study and comminution testing were
delivered to the SGS facility in Tucson, Arizona. The metallurgical study that was developed on three
composite samples indicated that the copper and molybdenum were amenable to recovery by flotation.
The metallurgical data developed have been summarized in the following paragraphs.
Rougher flotation testing was conducted for 25 minutes at a grind size of approximately 80% passing
270 microns on each of the composite samples using a scheme of reagents provided by BHP.
Total copper rougher recovery ranged from 95.06 to 91.98%. The highest copper
recovery of 95.06 percent was obtained on the Composite 5 after a retention time of 25
minutes. It seems that a retention time of 15 minutes could be the maximum retention
time. It was recommended that a retention time factor of two should be used for plant
design.
Molybdenum recovery ranged from 81.76 percent to 69.69 percent. The highest
molybdenum recovery of 81.76 percent was obtained on the on the Composite 5 after a
retention time of 25 minutes.
There has been a significant amount of work on the analysis of flotation recoveries for the Pinto Valley
mill. The review completed in 2012/2013 by BHP for the PV2 Project presentations generated a wide
range of observations and conclusions. The primary findings have been included in the various charts
and tables below.
Page | 77
Figure 13-4 illustrates the predictions for total copper recovery that were developed using flotation
modeling techniques developed by SGS (Fleet). The Fleet models are typically developed by lab flotation
tests. The results shown indicate a good match to plant data.
In comparison to earlier recovery models based on a fixed final tail copper assay the Fleet model that
was generated appeared to provide a more accurate representation.
In Figure 13-5 efforts were made to compare 2013 data to the 2007 model and data. The results
indicated that the rougher recoveries for copper sulfide mineralization were comparable for the two
sets of data.
Page | 78
Name
Cu
Fe
S
Mo
Name
Cu
Fe
S
Mo
Name
Cu
Fe
S
Overall
Con Grade (%)
Mean
27.14
4.62
31.63
2.63
36.41
2.97
0.39
0.38
Rougher
Con Grade (%)
Mean
5.84
2.95
18.27
4.94
20.09
5.80
0.13
0.13
Cleaner
Con Grade (%)
Mean
27.14
4.62
31.63
2.63
36.41
2.97
Recovery (%)
Mean
85.18
6.44
12.58
4.39
32.97
23.04
47.88
23.71
Recovery (%)
Mean
91.26
4.43
36.01
13.67
90.52
5.92
77.79
35.57
Recovery (%)
Mean
93.34
6.67
34.78
22.93
36.42
26.03
Page | 79
Mo
0.39
Overall
0.38
61.54
27.98
The model that was developed predicted a copper cleaner recovery of 93.34% which reduced the overall
copper recovery to 85%. The historical cleaner recovery at Pinto Valley was indicated in one of the
reviewed reports to be about 97.3%. Typical porphyry copper cleaners operate above the 97.3% level
and the model provided in Table 13-3 could be predicting lower recoveries than are achieved in the
plant.
Page | 80
2007 Fleet
%Cu
Recovery %
0.10
75.20
0.20
80.90
0.30
84.30
0.40
86.60
0.50
88.50
0.60
90.00
0.70
91.30
0.80
92.40
0.90
93.30
2013 Rougher
%Cu Recovery %
0.10
88.03
0.20
89.02
0.30
90.01
0.40
91.00
0.50
91.98
0.60
92.97
0.70
93.96
0.80
94.95
0.90
95.94
2013 Cleaner
%Cu Recovery %
0.10
85.61
0.20
86.75
0.30
87.87
0.40
88.05
0.50
88.18
0.60
87.95
0.70
87.35
0.80
86.36
0.90
84.98
The analysis of the FLEET cleaner flotation model indicates that the copper recovery peaks at a mill feed
grade of about 0.50% Cu. Based on this inversion and declining cleaner flotation recovery with
increasing grade the application of the fixed cleaner recovery to the model appears to provide a more
realistic expectation for the cleaner flotation circuit.
The sample, collected from the ball mill feed in January 2014 and forwarded to ALS in Kamloops, British
Columbia, was prepared for use in a preliminary metallurgical test program. The focus of the program
was to evaluate the rougher flotation recovery based on flotation feed size and flotation time. Figure
13-8 presents the results from the testwork for the copper and the moly recovery to the rougher
flotation concentrate.
The testwork was completed at different grinds. The initial tests were based on 8 minutes rougher
flotation time. The results of the initial tests indicated that the copper and moly recoveries and the
mass pull to the rougher concentrate decreased as the flotation feed became coarser. The decrease
appeared to become more significant as the flotation feed K80 approached 300 microns. Based on the
results of the preliminary tests the K80 300 and K80 364 flotation tests were repeated with the lab
flotation times extended to 20 minutes. The extended flotation times showed improved recoveries but
time did not achieve the same recoveries.
The grind / flotation time / recovery relationship has an impact on the throughput optimization of the
Pinto Valley process facilities.
Page | 81
Page | 82
During the metallurgical review activity for the 2014 PV2 PFS 43-101, a metallurgical testwork program
was completed (February 2014) at ALS Labs in Kamloops BC using a ROM ore sample collected from a
ball mill feed conveyor. The procedures developed for the ALS testwork were adopted for the program
at BaseMet Labs that was initiated in October 2014.
For the BaseMet Labs program, testwork was completed on each of the Pushback samples for
comparison to the ROM, baseline sample. A comparison of the test results identified the potential
differences in metallurgical performance.
The testwork program did show that the ore zones that will be mined in the pushbacks should be able to
be processed successfully using the existing flowsheet and equipment.
For each of the samples standard laboratory test procedures were used to complete:
Head assays were measured for each of the samples being tested. The ROM ore sample assay was
0.38% Cu. The pushback samples all had lower feed grade assays ranging from 0.22% Cu for the Aplite
composite to 0.32% Cu for the Eastern Pushback Upper Level composite. The implication of the lower
feed grade is that lower rougher flotation recoveries could be expected.
Bond rod mill and ball mill work indexes were determined for each of the samples, Table 13-5. Rod mill
test results were lower than the ball mill results indicating that the risk of a critical size build up in a SAG
mill grinding circuit will be lower. The ore types were typically medium hardness other than the Eastern
Pushback Upper Level (E.PB.UL) where the ball mill work index was 17.1.
Page | 83
Page | 84
to diabase ore. When the drill core sample for the Eastern Push Back Upper Level was examined in
detail it was determined that diabase was included in the sample composite. Review of the mine plan
indicates that diabase makes up less than 1% of the ore body so processing will have to be managed to
ensure minimal impact on overall throughput and recovery.
The throughput model based on target grind size for the single stage ball mill circuit defined in the
Technical Report should be applicable for PV3 ore.
For PV2 the projected copper flotation recovery based on mill feed grade for the Pinto Valley ore was
represented by:
RCu = ((9.8864) x (%Cu) + 87.041) x 0.973))
In Table 13-7 the copper flotation recovery has been projected for each of the composites and
compared to the lab flotation results. Fitting the current testwork to this model indicated that the
testwork results were consistent with previous work and that the same recovery model can be applied
for most of the Pushback ore zones.
Table 13-7: Comparing Flotation Test Recovery to Projected Recovery
Ore Description
ROM
E.PB.LL.
E.PB.ML
E.PB.UL
N.PB.LL
N.PB.ML
Aplite
Feed
Grade
0.38
0.29
0.30
0.32
0.29
0.26
0.22
Recovery
Lab
250u
92.40
85.00
300u
91.30
87.20
89.20
84.00
90.10
87.60
90.90
Calculated
Rougher
Combined
90.80
88.35
89.91
87.48
90.01
87.58
90.20
87.77
89.91
87.48
89.61
87.19
89.22
86.81
As in the grinding testwork the Eastern Pushback Upper Zone ore is the anomaly with a significantly
lower recovery (-6.0%) than the ROM. The lower recovery is also consistent with previous observations
for Diabase ores.
Primary Crushing
o Coarser Product (measured by on-line digital camera)
o 34.9% -1 (vs 45.5%)
Page | 85
68% availability =
71% availability =
75% availability =
85% availability =
48470 stpd
50610 stpd
53460 stpd
60282 stpd
(54800 mtpd)
It should be noted that the Bruno model has used screens with different profiles than the screens
installed in order to attain throughputs similar to plant levels. The screens are a primary bottle neck in
increasing plant throughput.
The July 1, 2013 to January 7, 2014 crusher operating data collected by the mine was evaluated to
determine site measurement of the crusher plant capacity. Nominal throughput for each secondary
crusher circuit was estimated at about 1000 short tons per operating hour (2930tph combined).
13.4.2 Grinding
The Pinto Valley grinding circuit utilizes single stage ball mill grinding to prepare the product from the
fine crushing facility for flotation. To model the grinding circuit the focus has been to develop the model
using the Bond ball mill work index calculations and incorporating the correction factors. The variables
inputted to the Bond equation include: the Bond ball mill work index (metric); fine crushing plant
product size, F80; the grinding circuit product size, P80. When compared to the plant data for an ore
work index of 14.6 there was an indication that the grinding circuit throughput was about 10% higher
than projected by the work index model. The plant data was analyzed from 3 months of 2014
continuous operating activity. Table 13-8 projects the plant throughput, in short tons per hour, for a
range of work indexes from 13.5 to 16.5. The 10% model adjustment has been included.
Table 13-8: Production Model (2014)
Plant Adjustment (stpd)
Plant Adjustment (mt/d)
62981
57255
59445
54041
56161
51056
53107
48279
50262
45693
47610
43282
45134
41031
Page | 86
52050
95.0%
2282.9
11000
280
13.5
3%
7.84
17904
24000
24000
49128
95.0%
2154.8
11000
280
14.0
3%
8.31
17904
24000
24000
46414
95.0%
2035.7
11000
280
14.5
3%
8.79
17904
24000
24000
43890
95.0%
1925.0
11000
280
15.0
3%
9.30
17904
24000
24000
41539
95.0%
1821.9
11000
280
15.5
3%
9.83
17904
24000
24000
39347
95.0%
1725.7
11000
280
16.0
3%
10.37
17904
24000
24000
37301
95.0%
1636.0
11000
280
16.5
3%
10.94
17904
24000
24000
Figure 13-10 provides a graph and linear equation for the interpretation of the model results for the
specific conditions of F80 = 11000 and P80 =280. The model and representative equation will change
for varying feed and product conditions.
Table 13-9 is a projection of the grinding circuit throughput applying the 2015 measurements of circuit
operating parameters.
Table 13-9: Production Model (2015)
Plant Adjustment (stpd)
Plant Adjustment (mt/d)
Model Throughput (mt/d)
Grinding Availability
Plant Feed Rate (t/h)
Feed Size, F80 (m)
Product Size, F80 (m)
Ball Mill Work Index, Wi
64836
58942
53583
95.6%
2334.4
11760
280
13.5
61169
55608
50553
95.6%
2204.4
11760
280
14.0
57766
52514
47740
95.6%
2079.9
11760
280
14.5
54602
49638
45126
95.6%
1966.0
11760
280
15.0
51658
46962
42693
95.6%
1860.0
11760
280
15.5
48915
44468
40426
95.6%
1761.2
11760
280
16.0
46357
42142
38311
95.6%
1669.1
11760
280
16.5
Page | 87
Drive Losses
Unit Power, kWh/t
Motor, kw available
Motor, hp available
Motor, hp installed
3%
7.95
18549
24864
24000
3%
8.42
18549
24864
24000
3%
8.92
18549
24864
24000
3%
9.43
18549
24864
24000
3%
9.97
18549
24864
24000
3%
10.53
18549
24864
24000
3%
11.11
18549
24864
24000
13.4.3 Flotation
The metallurgical review indicated that modelling of the flotation recovery has not produced consistent
models. The PV2 project requires the push back of the open pit in multiple directions and the
expectations should be that the mill performance will be very similar to the existing mill. Figure 13-11 is
a representation of the FLEET simulated rougher flotation recovery for copper.
Page | 88
Page | 89
Page | 90
Drillhole Source
Subtotal
PVRC-15 series (+)
Subtotal
GTH-15 series (+)
Total
All
TCu%
ASCU%
Mo%
Valid
89,056
79,746
76,367
Number
851
43
894
3
897
SD
0.23
0.05
0.009
CV
0.88
5.33
1.304
70 Aplite Dikes
Page | 91
30 Diabase Dikes
50 Granodiorite
60 Granite Porphyry
11 Ruin Granite
40 PLG
90 PMCG
10 PSG
Figure 14-2 shows a plan view of the major fault planes that bound the PVM deposit. These are the
West End, Gold Gulch, South Hill, Jewel Hill, Dome, and Bummer Faults. Figure 14-3 shows a plan view
of the lithology solids for the PVM deposit, which have been interpreted and modeled in Aranz LeapFrog
Geo software (Leapfrog). The primary units are the Ruin Granite, granodiorite, and granite
porphyry, in addition to a series of small, flat-lying aplite dikes and near-vertical diabase dikes.
Page | 92
Page | 93
Figure 14-4: Plan View of Lithological Model for Central Mine Fault Block with Location of Cross-Sections
Page | 94
Page | 95
A smaller, though significant, amount of mineralization is found within the Gold Gulch fault block (Figure
14-7, Figure 14-8 and Figure 14-9). The Gold Gulch fault block happens to be a small shear zone that is
bounded by two relatively close major faults, making it the most structurally complex fault block in the
model. As with the Mine fault block, the primary host for mineralization within the Gold Gulch block is
the Precambrian Ruin Granite (RRG unit), which is cut by several slightly younger aplite sills (APLITE unit)
and a single, branching Precambrian diabase dykes.
The Gold Gulch fault block is further complicated by the stratigraphically overlying Apache Group (APG
unit), Paleozoic Limestone (PLG unit), and Post-Mineralization Conglomerate (PMCG unit), as well as the
later intrusion of the Tertiary Granodiorite (50 unit). Pinal Schist (PSG unit) is the basement unit within
the Gold Gulch fault block and is intruded by the Ruin Granite (RRG). A number of small intervals of
Granite Porphyry (60 unit) are also present in this block, but they were not modeled as they are not
considered significant.
Page | 96
Figure 14-7: Plan View of Lithological Model for Gold Gulch Fault Block with Location of Cross-Sections
Page | 97
Page | 98
Page | 99
Figure 14-10: Plan View of Grade Shell Models: 0.3%TCu (ore) in red; <0.3%TCu and 0.1%TCu (low
grade mineralization) in green; and <0.1%TCu (waste) in blue.
Page | 100
Figure 14-11: Plan View of Mine and Gold Gulch Fault Block Grade Shell Models: 0.3%TCu (ore) in red;
<0.3%TCu and 0.1%TCu (low grade mineralization) in green; and <0.1%TCu (waste) in blue.
Page | 101
Figure 14-12: Plan View of Mine and Gold Gulch Fault Block Grade Shell Model; 0.3%TCu (ore) in red;
<0.3%TCu and 0.1%TCu (low grade mineralization), Faults in grey.
Page | 102
Figure 14-13: Plan View of Mine and Gold Gulch Fault Block Grade Shell Model showing 0.3%TCu (ore)
in red.
Page | 103
Figure 14-14: Northwest-Southeast Cross-Section (A-A) 0.3%TCu in red, <0.3%TCu and 0.1%TCu
Grade Shells in green.
Figure 14-15: Southwest-Northeast Cross-Section (B-B) 0.3%TCu in red, <0.3%TCu and 0.1%TCu in
green.
Due to the issues encountered in and around the granodiorite unit, box plots were useful in analyzing
whether this unit could be treated independently of the other lithological units in the estimation
process. In addition, of potential concern was whether the diabase and aplite dikes would require
segregation as a separate set of domain classes during the estimation process. Box plots were run for
the various lithology units, as shown in Figure 14-15, which illustrates that the aplite dikes are very
similar in nature to the Ruin Granite, which are interpreted to crosscut horizontally. Therefore, the Ruin
Granite and the aplite dikes were grouped as a common domain for the estimation. Furthermore, the
diabase dikes are also very similar, as is the granite porphyry, so it was decided that creating subsets of
the lithologic units within the mineralized envelopes was not necessary. However, it is clear that the
granodiorite exhibits lower grade than the other units and should be treated separately particularly
Pinto Valley Mine Life Extension Study, February 2016
Page | 104
when considering that there have been issues during mining in and around the granodiorite. Table 14-3
lists the assay statistics which show each element within the mineralized solids.
<0.1%
0.1
0.3%
>0.3%
Total
TCu
ASCu
Mo%
TCu
ASCu
Mo%
TCu
ASCu
Mo%
TCu
ASCu
Mo%
Valid
22,254
18,476
19,529
28,857
27,051
26,144
34,429
32,404
28,047
85,540
77,931
73,720
Length
164,615
130,574
148,668
221,804
203,473
199,413
241,406
217,875
194,192
627,824
551,922
542,272
Max
2.93
1.29
0.206
2.44
1.24
1.03
8.16
4.83
0.127
8.16
4.83
1.030
Mean
0.05
0.01
0.003
0.20
0.01
0.006
0.46
0.01
0.011
0.26
0.01
0.007
Median
0.04
0.00
0.001
0.19
0.00
0.005
0.42
0.00
0.010
0.23
0.00
0.005
SD
0.07
0.01
0.005
0.10
0.02
0.01
0.22
0.05
0.009
0.23
0.03
0.009
CV
1.4
2.4
1.8
0.5
2.2
1.5
0.5
4.0
0.8
0.9
3.6
1.3
14.3 Topography
The topography used is the current topographic surface as at December 31, 2015. Figure 14-17: Plan
View of Topographic Solid shows the topographic solid with the reasonable prospects pit overlain in
plan view.
Page | 105
14.4 Composites
It was determined that a 45 ft composite length minimizes the smoothing of the grades, and also
reduces the influence of typically narrow, higher-grade samples. This falls into alignment with the 45 ft
bench height used for mine planning.
Figure 14-18 and Figure 14-19 show the box plots for copper and molybdenum within the mineralized
envelopes. The basic statistics shown in the figures indicate that the copper and molybdenum data are
reasonably distributed. Copper composites have a relatively low coefficient of variation while the CV for
the molybdenum composites is relatively high particularly within the >0.3% grade shell.
Page | 106
Page | 107
Page | 108
Page | 109
Page | 110
Page | 111
14.5 Outliers
Cumulative frequency plots shown in Figure 14-24 and Figure 14-25 for %TCu and %Mo illustrate that at
1.6% TCu and 0.05% Mo, there is a break in the log normal plot. This represents 0.1% of the copper
composites and 0.4% of the molybdenum composites, which require implementation of a grade-limiting
strategy.
One is by physically cutting the grades of the assays or composites, and the other is by limiting the
influence that a high-grade sample has by limiting the distance to which it contributes to the grade of a
block estimate. In the case of the PVM deposit, the distance (radius) threshold chosen was 150 ft, which
equates to the adjacent, adjoining blocks and no farther.
Page | 112
Page | 113
Zone Metal
>3%
%TCu
%TCu
C0
0.213
0.206
Page | 114
Zone Metal
C0
C1
C2
0.1
0.3%
<0.1% %TCu
0.134
Zone Metal
>3% %ASCu
C0
0.111
0.113
0.1
%ASCu
0.3%
<0.1% %ASCu
0.284
0.663
0.204
2,240.6
1,108.1
-8
51
-20
153.9
204.6
540.6
1,108.2 18,672.4 1,767.6
5
41
12
87
11
51
Zone Metal
>3% %ASCu
C0
0.211
C1
0.362
C2
0.427
Range
Y (ft)
750
Range
Z (ft)
300
*Diamond Drillhole
The estimation strategy for %TCU and %ASCu employed a four stage process. The grades for %TCU and
%ASCu are estimated using ordinary kriging within each of the respective grade shells separately and
stored. In addition, the grades are estimated within the granodiorite unit only using inverse distance to
the second power as there is insufficient data to derive meaningful variograms. The final %TCU and
%ASCu grades are then combined on a relative weighted basis using the partial as a percentage to do
the weighting.
The estimation plan includes the following:
Estimate the grades for each of the metals within each of the mineralized grade shells using
ordinary kriging in a single pass.
Estimate the grades for each of the metals within granodiorite unit using ID2 in a single pass.
Include a minimum of 2 composites and a maximum of 16, with a maximum of 4 from any 1
drillhole.
Combine the individual grades into a whole block diluted grade by weighting by the partials
stored as a percentage.
Pinto Valley Mine Life Extension Study, February 2016
Page | 115
The estimation of %Mo was performed using a single pass ordinary kriging run irrespective of grade shell
domain or lithology domain.
The amount of data available for estimating Ag, Au and Fe is limited and therefore estimating these
elements in the same manner would not result in any meaningful results.
Page | 116
The confidence limits for a given production rate are a function of the spatial variation of the data and
the sample or drillhole spacing. For this exercise, the drillhole grids tested were 900 900 ft, 600 600
ft, 300 300 ft, and 150 150 ft.
The following details the grid spacing for each resource category to classify resources are:
Measured
Note that based on the Canadian Institute of Mining (CIM) definitions, continuity must be
demonstrated in the designation of measured (and indicated) resources; therefore, no
measured resources can be declared based on one hole. The uncertainty based on current
information suggests a spacing of 150 ft may be required to classify measured resources.
Indicated
Resources in this category could be delineated from multiple drillholes located on a
nominal 500 ft square grid pattern.
Inferred
Resources in this category include any material not falling in the categories above, and
within a maximum 750 ft of one hole.
The spacing distances are intended to define contiguous volumes, and they should allow for some
irregularities due to actual drillhole placement. The final classification volume results typically must be
smoothed manually to come to a coherent classification scheme.
To further ensure confidence and continuity, the blocks were displayed at the chosen thresholds of
approximately 150 ft and 500 ft to the nearest composite, and a boundary was digitized to create a
smooth surface and to reduce the spotted dog effect. A solid was then created and coded back into
the model by majority code, and using >50% partials to be classified as measured or indicated. The
remainder that is greater than 500 ft, but not more than 750 ft from nearest composite, was classified
as Inferred.
Page | 117
$3.30/lb Cu, $10.00/lb Mo, 88% Cu recovery, 50% Mo recovery, $1.50/ton mining costs, $1.50/ton G&A
costs, $5.00/ton milling costs, and a pit slope of 45. The pit optimization results are used solely for the
purpose of testing the reasonable prospects for eventual economic extraction and do not represent an
attempt to estimate mineral reserves. The optimization results are used to assist with the preparation
of a mineral resource statement and to select and appropriate reporting assumptions.
It is important to note that the resources are reported below the most current topography at the
effective date which is the January 1, 2016 topographic surface as shown in Figure 1-17. In addition, the
method used for reporting the resources is by creating a solid between the 2016 topography and the
reasonable prospects pit and then reporting the volumes as a percentage of the partial blocks as
opposed to less accurate method of whole block reporting. Figure 14-27 shows a plan view of the %TCu
grades for blocks falling within the reasonable prospects pit.
Figure 14-27: Plan View of Block Model at Elevation 3050 with TCu Grades
The mineral resources are listed in Table 14-8 for %TCu and %Mo.
The mineral resources were estimated by Kirkham Geosystems Ltd and are effective January 1, 2016.
The estimate includes results from drill programs conducted in 2015 and a revised geological model,
revised grade shell models and adjustments to the estimation strategy based on a better, current
understanding of the character of the deposit particularly at the boundaries.
Pinto Valley Mine Life Extension Study, February 2016
Page | 118
Measured (M)
Indicated (I)
Total M&I
Inferred
1.
2.
3.
Imperial
(MTons)
Copper
(%)
Molybdenum
(%)
Contained
Copper (M Lbs)
714.2
851.3
1,565.5
138.9
0.34
0.26
0.30
0.25
0.008
0.006
0.007
0.005
4,843.4
4,387.8
9,231.5
686.7
Contained
Molybdenum
(M Lbs)
118.6
105.6
224.1
13.9
Table 14-9: Mineral Resources at 0.17% TCu Cutoff Grade1, 2 (Metric Units)
Contained
Metric
Copper
Molybdenum
Contained
Molybdenum
(M Tonnes)
(%)
(%)
Copper (M Lbs)
(M Lbs)
Measured (M)
647.9
0.34
0.008
4,843.4
118.6
Indicated (I)
772.3
0.26
0.006
4,387.8
105.6
Total M&I
1,420.2
0.30
0.007
9,231.5
224.1
Inferred
126.0
0.25
0.005
686.7
13.9
1.
2.
3.
Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral
resource estimates do not account for a resources mineability, selectivity, mining loss, or dilution.
These estimates include Inferred mineral resources that are normally considered too geologically
speculative for the application of economic considerations; therefore, they are unable to be classified as
mineral reserves. Also, there is no certainty that these Inferred mineral resources may be converted
into Measured or Indicated resources as a result of future drilling or after applying economic
considerations.
14.10
Model Validation
A graphical validation was done on the block model. The purposes of the graphical validation are as
follows:
Visually check the reasonableness of the estimated grades based on the estimation plan and
the nearby composites.
Compare the general drift and the local grade trends of the block model to the drift and
local grade trends of the composites.
Check that, within the model blocks, the topography has been properly accounted for.
Inspect and explain, when necessary, the high-grade blocks created as a result of outliers.
Page | 119
A full set of cross sections, long sections, and plans were used to check the block model visually,
showing the block grades and the composite. There was no evidence that any blocks were wrongly
estimated. It appears that every block grade can be explained as a function of the following:
Surrounding Composites
Swath plots (drift analysis) that compare the ordinary kriged blocks with the inverse
distance and nearest neighbor estimates.
Inspection of histograms to determine the distance of the first composite to the nearest
block and the average distance to blocks for all composites used.
14.11
Model Risks
As resource models are an estimate, there are inherent risks related to the input data used,
interpretation of data and geology, subjective confidence and continuity. All efforts are taken to
mitigate these potential risks however, the following should be noted in the case of the resource
estimate reported herein.
There remains some uncertainly related to the interface between oxides and sulfides as the data,
particularly the historic data, has limited ASCu sampling results. Modelling has been performed with the
existing dataset and is used as a guide for the location of the interface. Estimation risks are very limited
within the core of the deposit where most of the oxide has been mined out however, there is some
uncertainty within the pit walls when pushing back.
Creation of the grade shells and lithologies are performed using LeapFrogTM which employs implicit
modelling. It should be noted that the same data can result in slightly varying representations so there
are risks related to these models particularly at the boundaries. Specifically, there is a risk related to the
delineation of granodiorite especially in the Castle Dome area as this is estimated separately due to its
low grade and reconciliation issues in the past.
The inferred resources for any deposit are relatively uncertain by definition. Additional drilling will be
required to more accurately characterize the grades when inferred resources are encountered during
mining.
Page | 120
Page | 121
Multiple floating cones were completed at a range of metal prices. Copper prices ranging from $2.00/lb
to $4.00/lb were applied within the cone runs. The base case metal prices for design were set at
$2.75/lb copper price and $12.50/lb molybdenum by Capstone. Molybdenum prices for the multiple
cones were set at the same ratio to base case as copper. For example, a floating cone at $2.20/lb
copper utilized a molybdenum price of (2.20/2.75 12.50 = $10.00/lb).
The costs and recoveries result in the following simplified cutoff grades if the contribution of
molybdenum is not included in the cutoff calculation.
IMC completed an additional analysis to determine the impact of molybdenum on the floating cone
results and the cutoff grade calculations. Molybdenum provides the equivalent value of about 0.02%
total copper. Comparisons of grade tonnage curves between a net smelter return (NSR) cutoff approach
applying the molybdenum credit and a simple total copper cutoff grade were sufficiently close that the
reserve and mine plan will be based on the total copper cutoff.
Figure 15-1 illustrates the floating cone that was produced at $2.75 copper. Figure 15-2 illustrates the
final pit design that was used to develop the mineral reserve. Comparing the two indicates that the
west and southwest areas that were economic in the floating cone but not economic in the phase by
phase analysis were not included in the final pit design.
Table 15-1: Base Case Floating Cone Input Pinto Valley Project
Cone Input Item
Cost or Recovery
Mining Cost Inputs to Cones
Direct Mine Operating Cost
$1.60/tonne
Haulage Cost Increment per Bench
$0.041/tonne /bench depth above/below 4040 bench
Average Total Mining Cost With Haul Increment
$2.05/tonne
Bench Discounting
1%/bench of depth below the 4895 bench
Process Costs for Mill Operation
General and Administrative Cost
$1.52/tonne
Milling Cost
$5.14/tonne
Flotation Process Recovery - Copper
All Except Diabase
Recovery (%) = ((Cu Grade 9.8864) + 87.041) 0.973
Diabase
Recovery (%) = ((Cu Grade 9.8864) + 82.041) 0.973
Molybdenum Recovery
45%
Concentrate Transport Costs
International Transport
$ 116.04/dry tonne
Domestic Transport
$ 14.95/dry tonne
Total Transport
$ 130.99/dry tonne
Treatment and Refining Costs for Copper
Moisture Content of Copper Concentrate
9%
Copper Concentrate Grade
27.50%
Copper Smelting Recovery
96%
Copper Smelting Cost
$90/dry tonne
Pinto Valley Mine Life Extension Study, February 2016
Page | 122
97%
$1.50/lb recovered Mo
4.50%
48.00%
$1.50 (cost/lb recovered Mo)
$2.75/lb Cu
$12.50/lb Mo
[1] Slope Angle Modifications during Late 2015 based on operational experience and guidance by CNI.
Page | 123
Figure 15-1: Floating Cone at $2.75/lb Copper, Used as Guidance for Phase Design Blue Line is the Patented Claim Boundary
Pinto Valley Mine Life Extension Study, February 2016
Page | 124
Page | 125
%Mo
0.009
0.007
0.009
Contained Metal
Cu M Lbs
Mo M Lbs
2,550.3
71.8
691.2
20.1
3,241.5
91.9
Page | 126
16 Mining Methods
PVM is an open-pit hard-rock mine, producing copper bearing sulfide ore to a conventional milling and
flotation concentrator. Conventional open-pit mining utilizes the cycle of drilling, blasting, loading, and
hauling of material to the respective destinations. Ore is hauled to the primary crusher for processing,
low-grade material is hauled to low-grade stockpiles and stored for later processing, and waste rock
material is hauled to waste storage facilities. Mining is accomplished on 45 ft benches. The qualified
person for this section is John Marek of IMC.
This prefeasibility study incorporates a moderate mill throughput increase in addition to extending the
mine life beyond 2026 to 2038. The current mill capacity of 54,000 tonnes per day (19,760 ktonnes/yr)
will be expanded to 56,000 tonnes per day (20,440 ktonnes/yr) beginning in 2017. The mine production
schedule was developed with the goal of maintaining mill feed and maximizing the project return on
investment.
The mine plan is scheduled to move 116,400 tpd (42,480 ktonnes/yr) of total material during 2016 and
123,100 tpd (44,900 ktonnes/yr) in 2017. Beginning in 2018, the mine will ramp-up to the total tonnage
movement of 132,900 tpd (48,500 ktonnes/yr) until ore is exposed in the final mine phase in 2031.
From then on, the total material movement reduces to slightly more than the ore rate.
The mine plans presented in this section were developed by Independent Mining Consultants, Inc.,
(IMC), based upon the block model of the deposit that was developed and provided by G. Kirkham. The
model blocks are 100 by 100 ft on plan with 45 ft bench heights.
The mining plan is reported in Metric units. One tonne is a metric tonne of 1,000 kilograms, equivalent
to 2204.62 lbs. Ktonnes means 1,000 tonnes. Metal grades are in percent by weight.
Page | 127
IMC has designed three pushbacks that expand the pit beyond 2026 that further develop the pit to the
east and north.
In total, there are seven phase designs that were used as input to the development of the PVM
schedule. The mining phases are a combination of work completed by Pinto Valley engineering staff and
IMC. The phase designs in order of extraction are:
PV1_v2c
PV2 _v2c_ECD
PV2_v2c_JH
PV2_v2c_WCD
East Phase
North Phase No. 1
North Phase No. 2
Phase PV1_v2c reflects the current operation in the bottom of the Pinto Valley mine to be completed in
year 2018. Jewel Hill is an eastern pushback that was designed to continue the operation through year
2022. The Jewel Hill phase has been sub-phased by PVM Engineering to enable development in the
Castle Dome area to the south to proceed ahead of the Jewel Hill eastern portion.
The location of the phase designs, particularly Jewel Hill, East, and North are illustrated on Figure 16-1.
Inter-ramp slope angles for the phase design are summarized in the next subsection. The overall and
inter-ramp slopes were reviewed and recommended by geotechnical contractor SRK Consulting (SRK).
In addition to slope angles, the following road and pushback geometries complete the mine design
parameters:
The tonnage and grade at multiple cutoff grades were tabulated from the designed phases on a benchby-bench basis. Those tabulations were used as input to the development of the mine production
schedule.
Page | 128
Page | 129
Mining of slopes in the Pinal schist is not planned in the design. For reference, slopes in the Pinal Schist
have a history of displacement and are at limit equilibrium Factor-of-Safety = 1.0. PVM has safely
maintained operational activities with displacing slopes using a range of mitigating controls based on
observation and a slope monitoring program.
The recommended inter-ramp slope angles for design of the phases is summarized on Table 16-1.
Table 16-1: Inter-ramp Slope Angles, from SRK Consulting
Single Bench
Double Bench
Sector
45 ft Height
90 ft Height
Ruin Granite
48
Whitetail Southwest
35
Whitetail Northeast
48
West Wall Shear Zone
28-32
Diabase
42
48 East Wall
Pinal Schist
27
Pinal Schist Shear Zone
24
Granodiorite
40
48 Lt 200 ft high
Limestone West
40 West Wall
48 East WallHistoric Waste Dumps
32
-
In addition, a Granite Porphyry unit was intersected in the southeast section of the pit that was
originally interpreted as part of the Granodiorite. The Granite Porphyry has recently been interpreted
separately with an inter-ramp slope angle of 34 degrees. In addition to the southeast corner of the pit,
The Granite Porphyry also impacts a portion of the northeast wall in the PV3 East pushback.
Page | 130
Page | 131
2, Hitachi EX5600 hydraulic front shovels with 29.1 cubic meters (38 cubic yard) buckets
2, Cat 994 front end loader equipped with 17.2 cubic meter (22.5 cubic yard) buckets.
Productivity of the two shovels will be somewhat limited during 2016 due to some narrow geometries in
the bottom of the current pit. Those conditions will be improved during 2016 and 2017 so that the
shovels will achieve more efficient productivity by 2018. IMC and PVM established the following total
material movement schedule based on the production capacities of the two shovels assisted by a 994
Front Loader.
2016: 42,480 k tonnes/year = 116,384 tonnes/day
2017: 44,900 k tonnes/year = 123,014 tonnes/day
2018: 48,500 k tonnes/year = 132,877 tonnes/day
48,500 k tonnes/year is maintained until release of ore from the final pushback in year 2032
On average, one operating 994 will contribute about 13% of the loading capacity from 2018 onward.
Prior to that time, the two 994s will contribute up to 25% of the required loading capacity.
PVM is currently operating, the PV3 mine plan and schedule is a continuation and extension of the
current operation. Some road pioneering will be required to begin the development of the Jewel Hill
and East Phase of the pit.
Cutoff grades were established to maximize the project NPV for the selected equipment capacity and
total material rate. The cutoff grade for the mine schedules are based on total copper cutoff grades.
The mill feed cutoff grade changes over time, from 0.19%-0.18% TCu during 2016 through 2022 reducing
to 0.17% TCu in 2023. During 2029 through 2032, the cutoff is increased to values between 0.18% and
0.22% TCu to improve head grade and the project time value economics.
Page | 132
During periods when the mill cutoff is above 0.18%, material with grade between the mill cutoff and
0.18% is stockpiled for later processing. The stockpile cutoff is set at a value slightly higher than internal
or marginal cutoff to incorporate the re-mining costs from the stockpile to the crusher.
The mine extraction schedule is illustrated on Table 16-2. Mining from the pit ends mid way through
2038 and stockpile material rehandling commences through till Q1 2039. The mill feed schedule is
shown in Table 16-3. These tables are based on Proven and Probable Mineral Reserves only.
Figure 16-3 illustrates the mine schedule in graphic form.
Table 16-2: Mine Extraction Plan Mill Rate of 54,000 TPD (2016), 56,000 TPD (2017 and beyond)
Year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
Total
Cut Off
% Tcu
0.18
0.19
0.19
0.17
0.18
0.19
0.18
0.17
0.17
0.17
0.17
0.17
0.17
0.22
0.22
0.18
0.19
0.17
0.17
0.17
0.17
0.17
0.17
0.00
Waste
Total Mined
M Tonnes
M tonnes
22.7
42.5
23.5
44.9
26.2
48.5
28.2
48.6
28.1
48.5
27.3
48.5
28.1
48.5
28.1
48.5
28.1
48.5
28.1
48.5
28.1
48.5
28.1
48.5
28.1
48.5
18.5
48.5
26.5
48.5
28.1
48.5
4.1
24.7
3.0
23.4
3.0
23.4
1.4
21.8
0.3
20.7
0.0
20.4
0.0
9.9
0.0
0.0
437.1
910.9
Page | 133
Table 16-3: Mill Feed Schedule Includes low grade stockpile 2038 and 2039
Year
Mill Feed
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
Total
M tonnes
19.76
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
20.44
4.402
473.8
% Mo
0.008%
0.008%
0.011%
0.011%
0.013%
0.008%
0.007%
0.007%
0.008%
0.010%
0.014%
0.014%
0.010%
0.009%
0.009%
0.010%
0.009%
0.008%
0.007%
0.008%
0.008%
0.006%
0.006%
0.007%
0.009%
Payable Copper in
Concentrate
M lbs
133.3
130.9
120.0
124.4
134.8
132.2
122.2
110.5
110.5
138.3
153.9
127.4
115.7
106.5
119.1
122.2
118.3
106.1
110.0
102.6
95.2
109.1
90.2
16.0
2,749.4
Payable Moly
M lbs
1.0
1.4
2.2
2.2
2.6
1.6
1.3
1.3
1.6
2.0
2.9
2.8
2.0
1.7
1.9
2.1
1.8
1.6
1.4
1.6
1.7
1.2
1.2
0.3
41.4
Assumptions used: Recovery as per the formulas provided by K. Major, P.Eng and reported in each block
along with 96.5% payable copper. Moly recoveries assume a ramp up from 30% in 2016 to 47% by 2019
and 97% payable.
Page | 134
Figure 16-3: Mine Plan Mill Rate of 54,000 TPD (2016) Increased to 56,000 TPD (2017+)
Page | 135
The Main Dump is built in 45 ft vertical lifts. Dumps that were originally designed by Pinto Valley
engineering (Leach, Gold Gulch East, and Gold Gulch West) utilized dump angles of 31.05 degrees with
15 ft setbacks between lifts for an overall average of 28.7 degrees. The IMC design of the Main Dump
utilizes a 37 degree dump face with a 23 ft set back resulting in an overall angle of 28.6 degrees.
A consistent tonnage factor of 1.93 kg/tonne (swell factor of 1.3) has been used to calculate all storage
capacities. Figure 16-13 is an illustration of the end result of all waste storage facilities at the end of the
PV3 mine plan.
Page | 136
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Page | 146
Blasthole Drills
Loading Equipment (shovels + loaders)
Haul Trucks
Page | 147
For years 2016 and 2017, IMC has coordinated equipment use schedules with PVM operations. From
2018 onward, IMC has applied standard IMC equipment calculations for the remainder of the mine life.
During a shift, IMC calculates efficient hours by accounting for mine site delays and operation
inefficiency. In this, IMC assumes that the mine site will have 1 hour of scheduled delays relating to shift
change and lunches/breaks. An operation efficiency of 50 minutes of every hour is then applied for
unforeseen delays (shovel backups, operator inefficiency).
Efficient Hours / Shift = (12 hour shift 1 Hour Delay) * (50/60 Operation Efficiency) = 9.17 Hours
IMC calculates availability and use of availability as follows.
[number of shifts the machine is available to work]
Availability =
730
[number of shifts the machine actually works]
Use of Availability =
[available shifts]
Table 16-5 is a summary of the maximum availabilities and use of availabilities that have been applied
for each equipment type. IMC has assumed the equipment accumulates 11.0 metered hours per shift.
Table 16-5: Maximum Equipment Availabilities and Use of Availabilities
Equipment Type
Cat MD6420 Blast Hole Drill
Hitachi EX5600 Shovel
Cat 994F Loader
Cat 789 Haul Truck
Cat D10T Track Dozer
Cat 834H Wheel Dozer
Cat 16M Motor Grader
Cat 777F Water Truck
Cat 336EL Aux Excavator
Cat 980H Aux Loader
Availability
80.0%
85.0%
85.0%
85.0%
85.0%
85.0%
85.0%
85.0%
85.0%
85.0%
Use of
Availability
95.0%
95.0%
95.0%
95.0%
88.0%
85.0%
88.0%
78.0%
75.0%
85.0%
Page | 148
Table 16-6 summarizes the required operating shifts, the fractional drill fleet, the rounded drill fleet, the
fleet utilization, and the number of operators required per year. The table reflects the required number
of drills per year. Table 16-6 indicates more drills on site in the later years than Table 16-5, The three
drills that are on site are underutilized in the later years of the mine when only two drills are required.
Table 16-6: Drill Requirements Blast Hole Drill
Page | 149
16.7.2 Loading
The loading fleet consists of two Hitachi EX5600 hydraulic front shovels equipped with 29.1 cubic
meters (38 cubic yard) buckets and two Cat 994 front end loader equipped with 17.2 cubic meter
(22.5 cubic yard) buckets. These units are matched with Cat 789 haul trucks.
Table 16-7 illustrates the loading unit distribution between shovels and loaders throughout the mine
life. Mine production between the loaders and shovels are rebalanced yearly from 2016-2017. This
is due to the less than optimal operating conditions encountered in the planned pit bottom. By
2018, IMC has assumed that PVM will have improved conditions to slightly raise loading production
for the shovels reducing loader requirements for a mine increased total production rate of 48.5 Mt.
From 2018 on, the shovels will handle the bulk of the mine tonnage (42.4 M tonnes) with a lesser
reliance on the loader fleet for production (6.1 M tonnes). The loaders will also support the shovels
during shovel moves and with material blending.
The hydraulic shovels are the primary loading units at the mine. Table 16-8 summarizes the
hydraulic shovel loading requirements by year, including the required shifts, the fractional and
rounded fleet, the fleet utilization, and the number of operators.
The productivity calculation assumes that the trucks are always loaded to their body limit. The 789
truck load is 174.4 dry tonnes (179.6 wet) for ore and waste. Loader material movements depend
on the required mine utilization as shown in Table 16-9.
The Cat 994 wheel loader will also assist as auxiliary and backup service in addition to assisting
primary production. Beginning 2032, the loaders are scheduled as auxiliary equipment only as the
shovels will handle the remaining production. Table 16-9 summarizes the wheel loader loading
requirements by year, including the required shifts, the fractional and rounded fleet, the fleet
utilization, and the number of operators.
Table 16-7: Mined Tonnage Movement by Shovel and Loader Fleets (re-handle is not included)
Year
By Shovels
K tonnes
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
31,860
33,675
42,438
42,525
42,438
42,438
42,438
42,438
42,438
42,438
42,438
42,438
42,438
42,438
By
Loaders
K tonnes
10,620
11,225
6,063
6,075
6,063
6,063
6,063
6,063
6,063
6,063
6,063
6,063
6,063
6,063
Total
Moved
K tonnes
42,480
44,900
48,500
48,600
48,500
48,500
48,500
48,500
48,500
48,500
48,500
48,500
48,500
48,500
Shovel %
of Total
Loader %
of Total
75.0%
75.0%
87.5%
87.5%
87.5%
87.5%
87.5%
87.5%
87.5%
87.5%
87.5%
87.5%
87.5%
87.5%
25.0%
25.0%
12.5%
12.5%
12.5%
12.5%
12.5%
12.5%
12.5%
12.5%
12.5%
12.5%
12.5%
12.5%
Page | 150
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
Total
42,438
42,438
24,693
23,443
23,445
21,820
20,725
20,440
20,440
4,402
819,156
6,063
6,063
0
0
0
0
0
0
0
0
106,733
48,500
48,500
24,693
23,443
23,445
21,820
20,725
20,440
20,440
4,402
925,888
87.5%
87.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
12.5%
12.5%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Total
K tonnes
31,860
33,675
42,438
42,525
42,438
42,438
42,438
42,438
42,438
42,438
42,438
42,438
42,438
42,438
42,438
42,438
24,693
23,443
23,445
21,820
20,725
20,440
20,440
4,402
819,156
Loading
Shifts
1,159
1,225
1,129
1,132
1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,129
1,129
657
624
624
581
552
544
544
117
22,439
Shifts/
Year
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
182
16,060
Fract.
Fleet
1.97
2.08
1.92
1.92
1.92
1.92
1.92
1.92
1.92
1.92
1.92
1.92
1.92
1.92
1.92
1.92
1.11
1.06
1.06
0.99
0.94
0.92
0.92
0.80
Actual
Fleet
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
1
1
1
1
1
1
1
Fleet
Util.
0.79
0.84
0.77
0.78
0.77
0.77
0.77
0.77
0.77
0.77
0.77
0.77
0.77
0.77
0.77
0.77
0.45
0.85
0.85
0.80
0.76
0.75
0.75
0.64
0.77
# of
Crews
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
# of
Oper.
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
8
4
4
4
4
4
4
4
Page | 151
Table 16-9: Wheel Loader Requirements - Cat 994 Loading Cat789D Trucks
Year
2016
2017
2017
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
Total
Total
K tonnes
10,620
11,225
6,063
6,075
6,063
6,063
6,063
6,063
6,063
6,063
6,063
6,063
6,063
6,063
6,063
6,063
0
0
0
0
0
0
0
0
106,733
Loading
Shifts
565
597
522
523
522
522
522
522
522
522
522
522
522
522
522
522
200
200
200
200
200
200
200
50
9,925
Shifts/
Year
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
182
16,972
Fract.
Fleet
0.96
1.01
0.89
0.89
0.89
0.89
0.89
0.89
0.89
0.89
0.89
0.89
0.89
0.89
0.89
0.89
0.34
0.34
0.34
0.34
0.34
0.34
0.34
0.34
Actual
Fleet
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Fleet
Util.
0.77
0.82
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.72
0.27
0.27
0.27
0.27
0.27
0.27
0.27
0.27
0.73
# of
Crews
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
# of
Oper.
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
16.7.3 Hauling
The current truck fleet at PVM consists of 18 Cat 789 haul trucks. Truck productivity was estimated
using haul time simulation. IMC measured haul profiles for each time period, material type,
pushback and destination for input to simulation. In total 124 profiles were measured.
Truck haulage times of each profile were calculated and the resulting tonnage per truck shift was
used to calculate the required truck operating shifts for each year.
Each of the trucks will be rebuilt once at about 60,000 hours and replaced at about 120,000 hours.
Trucks will be loaded to their body limit of 174.4 dry tonnes (179.6 wet). Shovel and loader loading
unit distribution for truck load times calculated from Table 16-7.
Table 16-10 summarizes the total truck shifts, fractional and actual fleet size, fleet utilization, and
number of operators for each year for the hauling fleet. The EX5600 is the primary loading unit for
Page | 152
the fleet. The Cat 994 wheel loader serves as a backup loading unit typically accounting for 12.5% of
total material.
From year 2016 to 2019, an average of 18 trucks are required which increases to a maximum of 20
trucks for years 2020 to 2029. The rebuild and replacement schedule maintains 20 trucks in the
fleet through 2033. They are underutilized to some degree when the requirement is less than 20
trucks.
Tonnes Loaded
Shovel
Loader
Total
(K tonnes) (K tonnes)
(K tonnes)
31,860
10,620
42,480
33,675
11,225
44,900
42,438
6,063
48,500
42,525
6,075
48,600
42,438
6,063
48,500
42,438
6,063
48,500
42,438
6,063
48,500
42,438
6,063
48,500
42,438
6,063
48,500
42,438
6,063
48,500
42,438
6,063
48,500
42,438
6,063
48,500
42,438
6,063
48,500
42,438
6,063
48,500
42,438
6,063
48,500
42,438
6,063
48,500
24,693
0
24,693
23,443
0
23,443
23,445
0
23,445
21,820
0
21,820
20,725
0
20,725
20,440
0
20,440
20,440
0
20,440
4,402
0
4,402
819,156
106,733
925,888
Truck
Shifts/
Fract.
Rounded
Fleet
# of
# of
Shifts
Year
Fleet
Fleet
Util.
Crews
Oper.
10,468
10,392
10,636
10,352
11,729
11,588
10,980
10,669
11,827
11,835
11,895
10,990
8,507
11,790
8,986
10,372
7,129
7,530
7,580
7,451
6,728
8,137
6,529
779
224,876
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
730
182
16,972
17.76
17.63
18.04
17.56
19.90
19.66
18.63
18.10
20.06
20.08
20.18
18.64
14.43
20.00
15.24
17.59
12.09
12.77
12.86
12.64
11.41
13.80
11.08
5.30
18
18
18
18
20
20
19
18
20
20
20
19
15
20
16
18
12
13
13
13
12
14
11
6
0.80
0.79
0.81
0.79
0.80
0.79
0.79
0.81
0.81
0.81
0.81
0.79
0.78
0.81
0.77
0.79
0.81
0.79
0.80
0.79
0.77
0.80
0.81
0.71
0.80
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
58
57
59
57
65
64
60
59
65
65
65
61
47
65
50
57
39
42
42
41
37
45
36
17
Page | 153
The primary function of the auxiliary equipment is to support the major production units, and
provide safe and clean working areas. Equipment types included in the auxiliary mine fleet are:
The operating hours and shift requirements for the auxiliary equipment are based on current and
planned scheduling practice at PVM.
Page | 154
17 Recovery Methods
17.1 Mill Process Design Criteria (2014) and Current Flow Sheet
The various unit operations of PVM have been evaluated to develop the basic process design criteria for
the mill. Where possible, the operating data has been compared to testwork and/or simulation models
to determine suitability for the design criteria. The key elements of the process design criteria include
the following.
Primary Crusher
o Product Size Distribution (operating data)
80%: 3.5 inches
45%: 1 inch
30%: 0.5 inch
Secondary/Tertiary Crushers
o Crushing circuit availability: 75% (projected/historical)
o Crushing circuit P80: 11 mm (operating data)
o Standard Cone Crusher Feed Rate: 3000 tpoh (operating data)
Grinding Circuit
o BMWi: 14.7 (metric) (testwork)
o Grinding circuit availability: 95% (projection)
o Daily Throughput, Nominal: 53,800 stpd (48900mt/d) (model/operating data)
o Cyclone overflow P80: 280 m (operator input)
Copper Flotation
o Rougher feed density: 37% solids
o Rougher flotation lab residence time: 8 minutes (ALS kinetic tests)
o Plant residence time: 24.8 minutes
o Scale up factor: 3.1 (target > 2.0)
Figure 17-1 is a simplified process flow sheet representing the main unit operations applied in the Pinto
Valley mill.
Page | 155
Page | 156
Page | 157
17.4.3 Grinding
Fine ore is reclaimed from the FOB and fed directly to six 18 ft 21 ft, 4,000 hp Allis-Chalmers overflow
ball mills. Each ball mill is an independent circuit consisting of discharge sump, pump, and cyclone
cluster. Water is added to the ball mill feed to achieve the desired percent solids content for grinding.
Additional water is required at the ball mill discharge sump to maintain the optimal operation of the
cyclones. Each circuit is equipped with three 33-inch inclined cyclones. Cyclone overflow slurry gravity
feeds the rougher flotation banks, while the underflow discharges back to the ball mill feed sump. The
ball mills operate in closed circuit with the cyclones, with a circulating load estimated at 300%.
Xanthate, dithiophosphate, diesel, and lime are added to the grinding circuit to prepare the ore in the
slurry for flotation.
17.4.4 Flotation
The flotation circuit operates as a staged process designed for the recovery of copper and molybdenum
to individual concentrates. The primary focus of the rougher flotation circuit is to optimize recovery of
the primary sulfide minerals from the gangue into a reduced mass for economic downstream
processing. Cleaner flotation delivers economic concentrate grades for marketing while maintaining
high recoveries.
The flotation reagents used include Flomin C-3430 (Xanthate), C-2420 (dithiophosphate), and F-171
(frother). Some of the flotation reagents have been added to the grinding circuit for slurry conditioning,
with addition rates augmented in the flotation circuit where required.
Regrinding of the rougher concentrate is required to provide the further mineral liberation to allow high
concentrate grades and recoveries from the cleaners. The molybdenum in the PVM ore is recovered to
the bulk cleaner concentrate with the copper. The molybdenum flotation circuit provides the
separation of the copper and molybdenum into respective concentrates for marketing.
17.4.4.2 Regrind
The rougher concentrate is delivered to the regrind ball mill circuit. Rougher concentrate is combined
with the regrind ball mill discharge and pumped to the closed-circuit cyclones. The target product for
regrind cyclone overflow is P80 of 50 m. The cyclone overflow is fed to the cleaner flotation circuit,
while the underflow is sent to two regrind mills. The regrind mills operate in closed circuit with the
cyclones.
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scavenger bank comprises fifteen 300 ft3 Wemco flotation cells. The concentrate from the first five
cells is recirculated to the column cells. The concentrate from cells 6 to 15 is recirculated to the head of
the cleaner scavenger bank. The tails of the cleaner scavenger bank are sent to final tailings.
17.5 SX-EW
The PVM SX-EW plant was built and commissioned in 1981 to process solutions from the leach grade
material placed on the leach dumps north of the pit. Through 1998, approximately 450 M tonnes of
0.13% TCu material had been placed on the leach, resulting in production of 10 to 15 M lbs of cathode
copper per year in the early 2000s. Over the last few years, the SX-EW has produced in the range of 5 to
8 M lbs of cathode per year due to the declining residual copper inventory in the leach piles. The PV3
plan utilizes the leach area and pregnant solution pond as waste rock storage, resulting in leaching
operations being discontinued at the end of 2018.
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18 Project Infrastructure
18.1 Site Infrastructure
Existing project infrastructure includes:
Mine Equipment Maintenance Facilities (North Barn, Main Shop, wash bays, tire change area)
Offices complexes (admin, mine, mill)
Heavy and light vehicle fuel storage and distribution
Explosives Plant
Pit dewatering pumps and pipelines
Concentrate dewatering, storage and loadout
Warehousing and Change Rooms
Stormwater ponds and pumping systems
Internal roads and access road FSR 287
Water wells and water pumping systems
First aid facility
Assay lab
Power lines and transformers
Tailings storage and distribution facilities
The increase in mineral reserves will only impact the tailings storage and distribution facilities. All other
infrastructure is adequate to support the mine life increase to 2039.
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production rate of 64,950 tpd. The design tailings pipeline flow rate is calculated to be 12,930 gpm with
55% solids.
The tailings gradation test results, performed by AMEC, indicate that approximately 10% of the particles
are finer than 4.8 m, approximately 50% of the particles are finer than 112 m, and approximately 80%
of the particles are finer than 360 m.
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The mine plan includes raising of the boundary dam by an additional 12 ft. The TSF3 main embankment
will be raised in a sequence of centerline and upstream lifts. These raises will provide 5 million tons of
storage capacity to an elevation of 3,780 ft.
Modifications to the current USFS POO are ongoing. Once the agreement is in place, the plan is for TSF3
to be raised to elevation 3,857 ft, which will provide about 21 million tons of tailings storage.
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each train are controlled by variable frequency drives (VFDs). Normal operation consists of running two
trains with the third train on standby.
The existing TSF4 Tailings Booster Pump Station will be removed from service in April 2016 and replaced
with the Combined Tailings Booster Pump Station. Delivery of tailings to TSF4 will be through 3 stages of
pumping. The third stage pumps are equipped with VFDs for flow control.
The discharge from the TSF4 Tailings Booster Pump Station consists of a 24-inch polyurethane-lined
steel pipeline up the south side of the TSF4 embankment to the dam crest. The pipeline continues
across the dam crest to the far abutment. Taps for cyclones are spaced approximately 50 ft apart. Up to
16 cyclones may be in operation at any one time. The fine-grained fraction from the cyclone overflow is
piped to the TSF beach. The coarse cyclone underflow material is used to construct the dam
embankment.
The existing reclaim water system consists of barge-mounted pumps and two booster pump stations
conveying water from the southern end of the TSF4 decant pool to the Mill Water Supply Tank. The
nominal design flow rate is 6,500 gpm.
The existing dual barge pumps are Hazleton Model 12DA Type VNCC with 21.5-inch impellers. The
drivers are Westinghouse 186 kW, 3-phase, 4,160 V, 1,174 rpm motors. Both booster pump stations
have two parallel Allis-Chalmers Model 3415 12 14 horizontal split case pumps with full-size 45.72 mm
impellers rated for 1,780 rpm. The drivers are GE 450 kW, 3-phase, 4,160 V, 1,800 rpm motors. All of
the reclaim pumps are controlled (kept within their rated pump curve) by back pressure valves that are
partially closed (increasing the back pressure) as the pond level rises.
As the TSF4 decant pool rises, the first booster pump station will no longer be needed and will be
abandoned. At that time, the second booster pump station will be relocated.
18.7 Monitoring
A series of piezometers has been installed to monitor groundwater fluctuations at the current and
previously operated TSFs. The piezometers consist of open standpipes, pneumatic, and vibrating wire
piezometers. The piezometers are measured monthly. Fifty new piezometers were installed in 2015, all
of these piezometers are connected to automated data recorders.
Quarterly monitoring reports of the piezometer readings are prepared and reviewed by the designated
PVM engineer to verify that the TSFs are operated, and are performing, as designed. An annual
Pinto Valley Mine Life Extension Study, February 2016
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monitoring report, which includes a summary and graphs of the piezometer measurements, is
submitted to ADEQ.
The active and former TSFs are inspected annually by PVMs consulting geotechnical engineer.
Feedback is provided on the operation of the TSFs and recommendations, if necessary, are provided to
the PVM management and engineering groups.
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19.4 Supply
Global mine production continued to grow during 2014 reaching 18.6Mt, 2.5% higher than the total
achieved during 2013. This increase compares with an 8.2% increase seen in 2013 and a compound
annual average growth rate (CAGR) of just 1.8% over the period 2002 to 2012. Additions to mine
capacity during the period 2014 through to 2018 represent a CAGR of 3.1%. Beyond 2018, mine
production is expected to decline due to reserve depletion to reach 16.3Mt by 2025 and 11.4Mt by
2035. This means that over the forecast period, existing mine production is expected to decline by an
average rate of 2.1% annually. As a result, beyond 2018, increased demand and attrition at existing
mines will mean that the primary market will return to a deficit unless mine projects are developed.
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(EHSS) Policy overseen by an EHSS Committee. Each new employee is required to make a commitment
to safety acknowledged by signing the Code of Conduct.
PVM is subject to health and safety regulations under the supervision of the Mine Safety and Health
Administration (MSHA), ASMIO, Arizona Department of Transportation (ADOT), and other federal and
state agencies. New miner training, annual refresher training and training certification to operate
specialized equipment is handled internally at site. Specific health and safety plans and traffic
management plans will be developed for projects that are outside of routine operations throughout the
mine life.
Safety incidents and accidents are reported via an integrated internal notification system. Incidents,
property damage, and injuries are investigated by the area supervisors, assisted by PVMs Health,
Safety, Environment & Community (HSEC) department and other relevant internal personnel, to review
the causes, and develop preventative and remedial plans.
The safety procedures and personal protective equipment requirements for routine work, emergency
reporting and response protocols, and training such as risk review procedures and environmental
training are well documented and reinforced by the HSEC department as part of employee training. The
HSEC department also oversees industrial hygiene-related programs such as hearing conservation
programs that test employee hearing, monitor noise levels, and work with operations, as required, to
mitigate excessive noise. The department activities include a respiratory protection program, fatigue
management, annual medical examinations, the back-to-work assessment following a workplace
illness or injury, the drug and alcohol program and fitness for duty program. Health-related programs
managed primarily by the Human Resources Department include new employee medical screenings.
20.2.1 Groundwater
Water quality analyses of various constituents are required on a quarterly, annual, and biennial basis
from designated seeps/springs, and Point-of-Compliance (POC) wells. Routine self-monitoring report
forms are submitted to ADEQ with the results of water quality monitoring and site inspections.
Pinto Valley Mine Life Extension Study, February 2016
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APP compliance reporting requires an annual demonstration of the adequacy of pit containment (i.e. the
Open Pit is a sink with evaporation exceeding the groundwater flowing inwards from surrounding areas
into the Open Pit). A comprehensive groundwater report is required by ADEQ every 5 years to assess
adequacy of POC wells and the passive hydraulic containment in the Open Pit.
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has been reclaimed and is inspected for seepage and erosion features. AMEC performs an annual
inspection of the two active impoundments (TSF3 & TSF4) and prepares a report that is written and
stamped by an Arizona-registered engineer and submitted to ADEQ. Associated seepage toe drains and
caissons are to be kept free of debris, sediments, vegetation, and other obstructions.
Environmental monitoring for the expanded TSF4 is not expected to require additional downgradient
POC wells or surface water discharge point monitoring from the seepage and stormwater collection
ponds. Any new monitoring related to the expanded facilities, including compliance with tailings
disposal and design height limits, will be conducted as required by the relevant governmental agencies.
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Environmental Impact Statement (EIS) The EIS process includes additional public
involvement when compared to the EA process. Under an EIS, notification of the preparation
of an EIS is published in the Federal Register to initiate scoping; the public also has an
opportunity to review the draft EIS once it is completed. In practice, the level of
environmental resource analysis under an EIS can be similar to that for an EA, and is
dependent on the degree of impact. In addition, the USFS has requested public comment on
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draft EA documents in the recent past, similar to the EIS process. The EIS results in a Record
of Decision (ROD) outlining the evaluated impacts of the project, along with the mitigation
responsibilities of the project proponent.
Approval of the POO will also include consultations with the relevant agencies under the Endangered
Species Act and the National Historic Preservation Act (discussed in Sections 20.3.1.4 and 20.3.1.5,
respectively). The final POO approval process (including NEPA review and consultations) is anticipated
to take approximately 2-3 years from the initiation of scoping. Changes to plan designs prior to scoping
can be incorporated into the process. Design changes after scoping may be incorporated into project
alternatives required to be evaluated in the NEPA document, or may require re-initiation of scoping,
resetting the final POO approval clock.
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request for a significant amendment will describe multiple facility modifications once the final
configuration is selected by Capstone. The changes include design modifications to existing facilities,
addition of new facilities, closure or removal of permitted facilities that are no longer needed, updates
to BADCT demonstrations, and updates to the closure and post-closure strategy and the site-wide
closure and post-closure cost estimates. The following permit modifications will be required:
1. Modify the design and height limit for TSF4 and update the BADCT demonstration;
2. Modify the design for Main Dump and update the BADCT demonstration;
3. Submit design and BADCT demonstration for low-grade stockpile on southwest portion of
retired LP;
4. Submit design and BADCT demonstration for new waste rock dump (West Dump) to be placed in
Gold Gulch;
5. Submit Closure Plan to decommission LP and associated facilities including PLS and Raffinate
Ponds;
6. Submit design and BADCT demonstration for a PLS draindown capture facility to replace the
decommissioned Gold Gulch PLS Pond 1A;
7. Update the site-wide closure and post-closure strategy and costs;
8. Add new POC or upgradient monitoring wells and/or seepage collection systems that may be
needed to cover gaps in groundwater monitoring or seepage control.
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until the remains can be properly recovered and repatriated. Any such discoveries must be treated in
accordance with Arizona Revised Statues.
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Figure 20-1: Perspective view looking north, -30 degrees at planned LOM waste rock, leaching, and
tailings facilities. Future decommissioned LP (gold), existing and expanded tailings (gray), marginal
grade dumps (blue) and planned LOM waste rock (red)
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Permit Effort
Schedule Start
Point
Federal
Plan of
USFS-TNF
Operations
(Including NEPA
review)
Forest Road
Relocation
USFS-TNF
CWA Section
USACE
404 Permit
(Including NEPA
review)
Endangered
Species Act
Compliance
Lead federal
agency and
USFWS
Acceptance of
Plan of
Operations as
suitable to initiate
NEPA.
Relocation of FR 287 will be
6 months to 2
Availability of
required for construction of the years depending road designs
West Dump and is consistent
on TNF approach
with easement, but may require
an update to TNF Travel Plan.
Assumes an individual permit
2 to 3+ years
Submittal of
will be required for tailings
permit
facilities. Will need to
application.
demonstrate LEDPA and secure
viable mitigation option.
Assumes formal consultation for 1 to 1.5 years
Submittal of
potential impacts to ESA listed
Biological
species as part of Section 404
Assessment to
permit and/or POO approval.
federal agency at
draft NEPA
document stage.
Cultural resource sites known to 1-2 years.
Completion of
occur within footprint of
Estimated
survey and
expansion areas. If federal
timeframe does Acceptance of
permitting is required, a
not include final Plan of
treatment plan and consultation data recovery
Operations
with SHPO and local tribes will report; however, sufficient to
be required.
construction
evaluate impacts.
would be
Federal agency
Data recovery will need to be
permitted
can initiate
completed before sites are
following data
consultation with
disturbed.
recovery and an SHPO with final
out of field
survey report.
report.
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Permit Effort
State
Aquifer
Protection
Permit
Agency
ADEQ
Individual
AZPDES Permit
ADEQ
ADEQ
Air Quality
Control Permit
ADEQ
Dam Safety
Permit
ADWR
Assumptions/
Key Considerations
Estimated
Timeframe
Schedule Start
Point
18 to 30 months Submittal of
application with
baseline data and
basic engineering.
Existing permits are in place.
2 months - 2
Submittal of
PV3 facilities may affect existing years
application with
outfalls and could require
baseline data and
modification of the existing
basic engineering.
permit to accommodate new
and modified
stormwater/seepage collection
ponds for expansion areas.
The current AZMSG-2010
12 months
Submittal of
expires on January 31, 2016.
application with
The SWPPP will have to be
baseline data and
modified to include PV3
basic engineering.
facilities and BMPs prior to
initiation of construction or
upon permit expiration.
Updates to current permit.
6 18 months
Availability of
detailed
emissions and
ambient air
information,
submittal of
application
PV3 will not utilize jurisdictional NA
NA
impoundments (greater than 25
ft embankment height or
greater than 50 ac-ft storage
capacity). However, withdraw
permits of existing dams in Gold
Gulch will be required.
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Permit Effort
Agency
Mined Land
Reclamation
Plan
ASMIO
Certificate of
Environmental
Compatibility
Arizona
Corporation
Commission
Assumptions/
Estimated
Key Considerations
Timeframe
Update existing MLRP. Expect 2 1 year
rounds of comments and
responses with ASMI.
Schedule Start
Point
Availability of
general
arrangement, and
geotechnical and
geochemical
information
Define power
needs.
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needed for post-closure monitoring would be abandoned. The MLRP-related closure costs address
closure activities related to ensuring public safety, facility regrading, and revegetation.
APP-related closure costs were updated and approved by ADEQ in 2015 to reflect mine expansion plans
and disturbance through 2026 including a design change in the waste rock disposal facilities. An
application recently submitted to ADEQ in November 2015 to consolidate waste rock disposal facilities
will modify the site-wide closure and post-closure costs again when the application is approved in 2016.
Site-wide closure and post-closure costs have been estimated based on the updated LOM plan to 2039
discussed in this technical report. The costs were calculated based on assumptions documented in the
Closure and Post-Closure Strategy, regrade designs and quantities prepared by AFW and SRK, and
road/utility alignments and disturbance acreages on USFS-lands as compiled by WestLand and SRK.
The total cost for PVM closure and reclamation is estimated to be $143.5 M including $102.0 M in
closure costs and $1.8 M in post-closure costs, and $39.8M in Owners Costs. Closure costs include
direct capital costs of $80.9M and indirect costs of $21.1M. Post-closure costs include site inspections,
maintenance, monitoring. Owners costs include internal G&A and labor to support the 30-year postclosure period as well as closure designs, environmental studies and permit amendments and routine
environmental reporting, as needed.
The closure costs by regulatory permit program will be finalized when permit applications have been
submitted, reviewed, and approved by the relevant agency. Based on the LOM configuration discussed
in this technical report, however, the total closure and post-closure costs are estimated to be:
Capstone and SRK have reviewed the estimated closure and post-closure costs of $143.5 M and believe
the cost estimates are reasonable.
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The C1 cost is a measure used to calculate the operating cost of producing copper, net of byproduct
credits. The life of mine C1 cost, including mine waste stripping as an operating expense has been
estimated at $2.05/lb copper payable.
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The mine costs average to $1.67/metric tonne moved. The breakdown by category is shown in Table
21-2. Haulage and auxiliary equipment make up nearly half of the cost. Life of mine average cost per
tonne milled is $3.25.
Table 21-2: Mine Unit Cost Summary
Life of Mine Average Cost
Cost Type
US$/tonne mined
Drilling
0.11
Blasting
0.27
Loading
0.20
Hauling
0.62
Auxiliary
0.22
Mine General
0.05
Maintenance General
0.06
G&A
0.14
Total
1.67
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Other
Total
0.11
5.10
Units
US$M
US$M
US$M
US$M
US$M
The $651.3M capital costs equate to $0.24/lb of payable copper in the project. Adding this to the C1
cost shown in the operating cost section, results in an all-in production cost of $2.29/lb of copper
payable.
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22 Economic Analysis
Under Canadian National Instrument 43-101 regulations, producing issuers may exclude the information
required for Section 22 Economic Analysis on properties currently in production unless the Technical
Report includes a material expansion of current production. Capstone Mining Corp. is a producing issuer
per the definition in the NI-43-101 and a material expansion is not considered in this Technical Report.
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23 Adjacent Properties
The PVM site is in proximity to the following mining and exploration properties: KGHMs Carlota Mine
adjacent to PVM, BHP Billiton closed operations in the Globe-Miami area, and Freeport-McMoRans
Miami operation. The sources of the information included in this section are historic records, published
reports, and public websites as well as publically disclosed information by KGHM International Ltd. and
Freeport-McMoRan Inc. (FMI). The QP has been unable to verify the information and that the
information herein is not necessarily indicative of the mineralization on the property that is the subject
of the technical report.
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The economic assumptions for the reasonable prospects pit include: $3.30/lb Cu, $10.00/lb Mo, 88% Cu recovery, 50% Mo recovery,
$1.50/ton mining costs, $1.50/ton G&A costs, $5.00/ton milling costs, and a pit slope of 45.
Economic inputs to the block model were USD$2.75/lb Cu and USD$12.50 Moly
25.5 Permitting
Expanding the mine life to 2039 from 2026 will require revisions of two major items:
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Aquifer Protection Permit (APP) issued by the Arizona Department of Environmental Quality to
expand an existing tailings facility, waste rock storage facility and permit a new waste rock
storage facility.
An amendment to the Plan of Operations (POO), issued by the US Forest Service, related to:
o Tailings storage expansion
o Mine expansion
o Outstanding permit renewals.
25.6 Risks
While there are significant risks with mining projects, many of those risks are mitigated by being in full
production and the required infrastructure already in place. The major risks remaining that could
materially impact the mine life are:
Financial market conditions, including supply, demand and prices of base metals, goods and
services.
Regulatory and permitting environment complexities, changes and delays
Droughts and/or regulatory changes impacting water supply
Design pit slope angles and unforeseen geotechnical conditions.
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26 Recommendations
1. Actual vs predicted ore reconciliations should be carefully evaluated in the short and medium
term to determine if additional drilling is required.
2. Ensuring the recommended pit slope angles are achieved is one of the primary keys to success
of this plan. This will be accomplished through ongoing geotechnical mapping and monitoring
the effectiveness of slope depressurization. Drilling programs may be required to increase
confidence levels of predictions.
3. Additional geotechnical and metallurgical testwork prior to commencing the first PV3 pushback
in 2020.
4. Initiate major environmental analyses and permitting processes to ensure adequate time for
regulatory agency reviews.
5. Monitoring and control of the phreatic levels in the TSF embankments is critical to the
performance of the facilities. Additional geotechnical field investigations, including cone
penetration testing, exploratory drilling, laboratory testing and engineering analyses will be
required if phreatic levels in the TSF embankments rise above predicted levels. Methods to
control or mitigate the phreatic rise would be developed. A contingency of $5M has been
included in the PV3 tailings storage capital cost estimate for these efforts, expended in 2021
through 2034.
6. If the USFS POO is not obtained by 2025 additional studies need to be undertaken to raise the
TSF4 boundary dam crest elevations.
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27 References
Arancibia, O. N and A. H. Clark. 1996 Early Magnetite Amphibolite Plagioclase Alteration Mineralization
in the Island Copper Porphyry Copper Gold Molybdenum Deposit, British Columbia. Economic
Geology 91: 402-38
Breitrick, R.A. and Lenzi, G.W., 1987, Pinto Valley Copper Deposit: Arizona Geological Survey Special
Paper 5, p. 260-265,
Capstone Mining Corp., Pinto Valley Mine, 2014 Pre-feasibility Study NI43-101 Technical Report:
published technical report prepared for Capstone Mining Corp., April 28, 2014, 256 p.
Capstone Mining Corp., Integrated Environmental, Health, Safety and Sustainability Policy, Revised
November 7, 2014: corporate policy statement available at
http://capstonemining.com/responsibility/environment/default.aspx.
Capstone Mining Corp., 2015, Sustainability Report: internal company report, 56 p., available at
http://capstonemining.com/responsibility/Sustainability-Report/default.aspx.
Creasey, S.C., 1980, Chronology of intrusion and deposition of porphyry copper ores, Globe-Miami
District, Arizona: Economic Geology, v. 75, p. 830-844.
Davis, B. M. 1997. Some Methods of Producing Interval Estimates for Global and Local Resources. SME
Preprint 97-5.
Gustafson, L. B. and J. P. Hunt. 1975. The Porphyry Copper Deposit at El Salvador, Chile. Economic
Geology 70: 857-912.
Meinert, L. D. 2000 Gold in Skarns Related to Epizonal Intrusions: Reviews. Economic Geology 13: 34775.
Peterson, N.P., Gilbert, C.M and Quick, G.L, 1951, Geology and Ore deposits of the Castle Dome Area,
Gila County, Arizona: U.S. Geological Survey Bulletin 971, 134 p.
Peterson, Nels Paul, 1962, Geology and Ore Deposits of the Globe-Miami District, Arizona: U.S.
Geological Survey Professional Paper 342, 151 p.
Sillitoe, R.H., 2010, Porphyry Copper System: Economic Geology, v. 105, 3-11.
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