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Design criteria: LOMP is multidisciplinary exercise with objective to…
Design criteria:
LOMP is multidisciplinary exercise with objective to deliver best production plan based on defined corporate goals. Purpose of design criteria is ensure assumptions are consistent and agreed to by relevant stakeholders before starting the LOMP planning.
Plan Context:
-2020 LOM developed in Dec 2020 with objectives:
--Revised production cost estimate
--higher process plant throughput
--CoG optimization
--updated geotechnical zones
--updated mineral resource model calibrated with production/reconciliation process.
-Evaluated several mining scenarios.
-considered flexibility for permitting constraints
Ongoing work to evaluate options for mine and plant production towards discounted cash flow optimization. Option for trolley and AHS aimed at reducing truck requirements.
West Detour starts in 2023. After OB stripping mixed of smaller and ultra fleet will be used.
Fleet selection of 798 in 2022 Q2. Looking at revisiting truck selection in 2024 when Komatsu releases 2600V and advanced technology for all OEM.
2022 Mine Plan includes:
-new mine plan that considers 50m trolley ramp
-additional 798 trucks
-58º IRA North Wall
-Updated TMA Material schedule
--Cell 2/3 revised schedule (updated in 2020 to align will increased mill capaccity from 23MT/y to 28MT/y)
--plan to add cell 4 in future
Summary of 2022 vs 2020 LOM:
Process Plant:
28Mt/y : 28Mt/y (starting in 2022)
Environment:
updated dump and stockpile foot print with progressing permitting timeline : update stockpile foot print and permitting timeline assumptions.
Resource Model:
2021 mineral resource update (includes WD, Saddle and North Pit) : 2020 mineral resource, 2013 mineral resource for WD and NP.
Production costs
: 2022 budget assumptions inc. 798 costs : 2019 cost model with 2020 assumptions
Dilution factors
: 2018:2020 reconciliation : 2018:2020 reconciliation
TMA Costs:
2021 cost assumptions with updated strategy: 2019 assumptions.
Closure costs:
Detour and WD updated closure costs
Final Pit Limit:
Updated cost model and assumptions
COG:
Updated Variable COG
Mining Trucks:
Mixed 798/795: 795
Geotech:
Updated North Wal IRA 56º to 58º
Ramp Width:
Trolley access- 50m in North Wall
TMA Material Schedule:
Updated based on conceptual LOM volume (updated Cell 2/3) : Based on 2018/2019 Feasibility study
Corporate Goals:
Maximize risk adjusted NPV and compliance to operational, legal and environmental constraints
Metal Price assumptions:
Mineral Reserve: $1,300
Mineral resource:$1,500
Financial Evaluation: TBA
Energy Costs:
2022 - 2026, Long Term
Diesel: CAD/L 0.824,0.85,0.87,0.93,0.93
Elec Price: CAD/kWh 0.048,0.0248,0.0248,0.736,0.736,0.736
*Carbon Tax: $2.4M CAD
*Elec rate changes in 2025
Discount Rate:
5% WACC
Royalties % of net ounce produced:
Franco: 2%
FN: 0.8%
*After refiners charge of 0.05% of recovered ounces
Cut Off Grade Policy:
-In process cut off
-In pit limit analysis
-In cash-flow analysis
Operational Cost Capitalization:
-Capitalization of operating costs related to parts and labour for production equipment is calculated as a % of the total cost. The % represents an estimate of PCR's.
Deferred Stripping costs calculated based on KL policy which is based on Life of phase policy.
Geology:
Mineral Resource Model:
-Covers main, West, Saddle and North Pit Areas.
-The 2022 Mineral updates based on 390 of holes and 200 km of drilling (update)
-Covers the full project area
-updated interpretation of mineralized zones
-updated density estimation process
-updated top cut analysis based on production reconciliation
-UTM NAD83SCRS coordinate system
Resource Classification:
-Conventional Definition: Measured, Indicated, Inferred.
-Classification based on average distance to 3 closest samples to the cell;
-Similar to 2020 model:
--Measure - 20m x 20m
--Indicated - 40m x 40m
--Inferred - < 100m
Mineral Reserves:
-Constrained by Optimum Final Pit
-Classified as Ore and processed in 2022 Mine Schedule
-Includes only Measured and Indicated
-Inferred within pit limit is sent long term stockpile or waste based on applicable CoG
-Proven = Measured and classed as ore and processed
-Probable = Indicated and classed as ore and processed
Mineral resource reported as material above CoG constrained by optimum final resource pit. Includes all resource classes
Grade control:
RC drilling and Blast hole sampling used in estimation of grade control models.
Grade control polygons defined by 3D modelling after blast movements.
RC drilling infills existing DDH grid to a mesh of 20m x10 or less.
-Higher density drilling used in areas of high variability.
Closure Plan:
2019 closure plan defines limits for mining, waste dumps, stockpiles and tailings.
-Limits are in effect until West Detour permitting process is completed.
-Must maintain a 120m buffer zone around walter lake until all required permits are obtained.
-
WEST DETOUR AMMENDMENT ESTIMATES:
WD Environment Study Report (ESR) approved in March 23, 2021
Air amendment ECA required for additional blasting, loading and hauling. Blasting may be more restrictive because of proximity to property boundary.
Considerations don't include DLM saddle zone, increased tailing storage requirements or ancillary facilities for these infrastructures
Federal Impact Assessment (IA):
minimum 5 year permitting process
-involves multiple govt agencies and indigenous groups
-An IA is triggered if DLM operation increases by >50% relative to original federal environment assessment area (SOR/2019-285:19c)
Original DLM Area: 2564.8 Ha
West Detour Project: 1031 Ha (40%)
Remaining Area: 251.4 Ha (10 %)
Threshold: 3847.2 Ha (150%)
PERMITING REQUIREMENTS BY MINE DEVELOPMENT SCENARIO
SADDLE ZONE DEVELOPMENT
Closure Plan Amendment (2 years)
Provincial Class Environmental Assessment (Class A, B, or C (3-5 Years)
Amendment to Environmental Compliance Approval for Air & Noise (2-3 years)
Forestry Resource License (6 months)
Permit to Take Water (1 year)
ADDITIONAL TAILINGS CELL
Provincial Class Environmental Assessment (Class A, B, or C (3-5 Years)
FEDERAL IMPACT ASSESMENT (5+ years)
Schedule 2 Amendment & Section 35 Fisheries Act (2-3 years)
Closure Plan Amendment (2 years)
Lakes & Rivers Improvement Act Tailings Dam Construction Authorization (1 year)
Lakes & Rivers Improvement Act Watercourse Crossings & In-Water Work
Public Lands Act Construction of Dams Work Permit ( 1 year)
Amendment to Environmental Compliance Approval for Industrial Sewage Works (2 years)
Overall Benefit Permit for Caribou (2-3 years)
Fish Relocation License (6 months)
Permit to Take Water (1 year)
Forestry Resource License (6 months)
THICKENED TAILINGS AND RECLAIM POND
FEDERAL IMPACT ASSESMENT (5+ years)
Provincial Class Environmental Assessment (Class A, B, or C (3-5 Years)
Closure Plan Amendment (2 years)
Schedule 2 Amendment & Section 35 Fisheries Act (2-3 years)
Lakes & Rivers Improvement Act Watercourse Crossings & In-Water Work
Public Lands Act Construction of Dams Work Permit ( 1 year)
Amendment to Environmental Compliance Approval for Industrial Sewage Works (2 years)
Overall Benefit Permit for Caribou (2-3 years)
Permit to Take Water (1 year)
Forestry Resource License (6 months)
Fish Relocation License (6 months)
PIT BACKFILLING
Closure Plan Amendment (2 years)
WEST DETOUR PROJECT TIME LINE:
-
PRODUCTION
TREE CLEARING FOR ROADS/INFR
BUILD ACCESS ROADS
BUILD WATER MANAGEMENT (DITCHES/SED PONDS)
BUILD SUPPORT INTRASTRUCTURE
(BUILDINGS/FUEL STATIONS/MAINT SHOPS)
VEGETATION CLEARING FOR DUMPS/MINING
MINING
WASTE DUMPS
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2023 Q1
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2022 Q4
2022 Q4
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2022 Q4
2023 Q1
2023 Q4
2023 Q1
2023 Q1
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2022
2022
2022
2022
2022
2022
2022
2022
2022
2022
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2025 Q1
2024 Q1
2025 Q1
2025 Q1
SUPPORT INFRASTUCTURE
DETOUR PIT EXPANSION (exc WL)
DETOUR PIT EXPANSION (inc WL)
WEST DETOUR PIT
NORTH PIT
MRS 3
MRS4
MRS5
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PAG CLASSIFICATION:
-PAG/NAG sent to MRS1/MRS2 respectively
-Water rock classified based on proxy for Neutralization Potential Ratio (NPR)
-NPR is based on ratio of total carbon vs sulfur.
-NAG = NPR <1.5
Closure plan amendment 3 will propose new segregation criterion that integrates residual sulfur content following carbonate depletion
Routine operation testing of PAG established since 2013. Initial testing indicated 83-86%. Detailed sampling program during operation has confirmed.
14% PAG assumption used
Crusher and Milling Limits:
Amended Environmental Compliance Approval (Air ECA) permits mill throughput of 32.85Mt/yr. Effective Jan 7, 2021
Current Air ECA:
Blasting Permit:
-compliance with NOX limit guidelines
-320T of explosives and max area of 28,736sq.m
-Blast Times: Dec-Jan (12 am - 3pm); Mar-Nov (10am - 3pm)
DATES ARE BASED ON 3 CRITICAL PERMITS SUBSEQUENT TO ESR (ENVIRONMENT STUDY REPORT)
CLOSURE PLAN
CARIBOU PERMIT
DFO AUTHORIZATION TO IMPACT WATER BOIDES
Requires Forestry Permit- TREE CLEARING HAPPENS IN WINTER
Closure Plan amendment and OBP for Caribou depending on Scope
Water crossing permits for Culverts - need to submit earlier
Requires Closure plan amendments, FRL, Caribou Permit. Excludes draining Walter Lake
May need permits for fuel tanks/septic systems
Requires Closure plan amendments, FRL, Caribou Permit.
Requires Closure plan amendments, FRL, Caribou Permit.
Requires Closure plan amendments, permit to take water, caribou permit and fisheries authorization. Amended Air/Noise permit.
Requires closure plan amendment and caribou permit. Requires fisheries authorization and schedule 2