159742-N-RE-302_R0 (Trade Off Study HPGR vs SAG Economic Comparision Casale)

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COMPAÑÍA MINERA CASALE

PROJECT Nº 159742

CERRO CASALE PROJECT

PRE-FEASIBILITY/FEASIBILITY STUDY

TRADE-OFF STUDY REPORT

Nº 159742-N-RE-32

FOR

!"PR #S$ SA" ECONOMIC COMPARISON

Prepared by

AMEC I%&'(%)&*+%), C.*,' S$A.

Approved by

Discipline Lead/Manager Pi e rr e Lac o m be (PL)

Project Engineer I an O ro r d (!M)Engineering Manager " obe rt o A b # rt o ("A)Project Manager P a#l M c " ae ($%)&lient Mi ' e ! e lson (M!)

R'0$ B I' +( D)&'R'0**+%

D)&'A66(+0'

A IO Internal revie Dec *+ ,- Dec *+ ,- PL, IO Iss#ed or #se eb. + , Dec. 0+ ,

&lient1s &omments2



3-456!6"E67, 8P9" :O% "ev ,.doc P;9E O 73

T A B L E O F C O N T E N T

P A " E

1$ SUMMARY$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 3

2$ LIST OF ABBRE#IATIONS AND UNITS$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 4

3$ INTRODUCTION$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 5

4$ STUDY OBJECTI#ES SCOPE AND DELI#ERABLES$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 85. Objectives .............................................................................................................. *5. %cope and <attery Limits ....................................................................................... *5.7 Deliverables ........................................................................................................... 4

5$ TEC!NICAL DESCRIPTION$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 73. :ec=nical <ac'gro#nd ........................................................................................... 43. Design <asis .......................................................................................................... 0

3.7 Available Inormation............................................................................................ ,3.5 8P9" :estor' and %im#lation "es#lts ............................................................. ,3.3 >$%imMet %im#lations and Mass balance calc#lations .......................................

8$ CAPITAL COST ESTIMATE $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 12

7$ OPERATIN" COST ESTIMATE $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 13

$ NET PRESENT #ALUE AND PAYBAC: ANALYSIS$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 15

9$ CONCLUSIONS AND RECOMMENDATIONS $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 17

1$ REFERENCES$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 1

APPENDICES

Appendi? A E@#ipment Lists Appendi?< &apital &ost Estimates Appendi? &Operating &ost Estimates Appendi? DDraings

Appendi? E &alc#lations Appendi? Mass <alance



3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 77 O 73

1$ SUMMARY

:=is report presents t=e res#lts o an #pdated trade6o st#dy cond#cted by AME&

Americas Ltd to compare t=e relative merits o a %A9 mill6based (t=e alternative)vers#s a 8P9"6based (t=e base case) grinding circ#it conig#ration or t=e &erro&asale project. :=e project considers t=e treatment o ore+ at a rate o *,+,,, tpd+t=ro#g= a processing plant recovering gold and copper val#es.

:=e 8P9" base case =as been developed at easibility (%) level+ it= t=e incl#sion o some o t=e major material =andling capital cost red#ction items identiied in t=e %6stage b#t prior to considering t=e eect o t=e grind siBe target red#ction later implemented. :=e related design deliverables orm t=e basis o t=e operating andcapital cost estimates presented in t=is report. or t=e %A9 alternative+ t=e siBing o t=e commin#tion e@#ipment as revised rom t=e earlier preeasibility (P%) stage

assessment to relect adj#stment made since t=en to t=e poer re@#irement. <asedon t=ese+ t=e major e@#ipment re@#irements ere revised+ along it= t=eir e?pectedoperating and capital cost re@#irements.

:=e res#lts o t=e c#rrent st#dy reconirm t=e concl#sion reac=ed at t=e concl#sion o t=e P%+ namely t=at t=e =ig=er poer eiciency associated it= t=e 8P9" circ#ittranslates into a signiicant inancial advantage compared to t=e %A<&6< circ#it+re@#ired to establis= a %A96based commin#tion circ#it+ despite its =ig=er capitale?pendit#re. :able . is preseinting t=e o#tcome o t=e inancial analysis.

T ); , ' 1 $ 1 E <+% + =* < A % ) , * C + = 6) (* %> ! P "R - B )' 0 $ S A "- B ) ' C *( < *&

!PC Disco#nted , (FM) 4,.4!PC Disco#nted 3 (FM) 77.,%imple Paybac' (years) 5.4I"" () 2 .0

:=e positive o#tcome o t=e inancial analysis+ avo#ring t=e 8P9"6based circ#it+ isbro#g=t by an e?pected red#ction o t=e overall commin#tion section operating costsby F,.0,3/t+ or F5*.3M per year+ set against t=e additional capital e?pendit#re o F.-M. 9rinding media and liners cons#mption dierences acco#nt or appro?imately F,.35/t o t=is red#ction =ile poer savings acco#nt or an additional

F,.34/t. :=ese savings are partially oset by smaller increases in labo#r (F,.,7/t)+liners (F,.7/t) and maintenance materials and spares costs (F,.3/t). Additionalconveyors+ eeders and associated civil or's acco#nt or t=e b#l' o t=e capital costdierence beteen t=e to commin#tion circ#it conig#rations.

:=e ris's associated it= t=e adoption o a 8P9"6based commin#tion circ#it aredeemed as manageable and+ to some e?tent+ less da#nting t=an or a circ#it it= %A9mills. Most o t=e ris's associated it= t=e 8P9" circ#it relates to potential materials



3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 55 O 73

=andling iss#es and d#st prod#ction. :=ese can be mitigated t=ro#g= ade@#atedesign eat#res. %c=ed#le delays d#e to casting problems+ long lead and installationtimes+ and saety iss#es d#ring maintenance are some o t=e 'non ris's associatedit= a %A96based circ#it t=at o#ld be eliminated by t=e selection o t=e 8P9" ro#te.

:=e 8P9" circ#it is t=ereore reconirmed by t=e c#rrent st#dy #pdate as t=e preerredapproac= or t=e commin#tion circ#it design at &erro &asale.

2$ LIST OF ABBRE#IATIONS AND UNITS

%A9 %emi6A#togeno#s 9rinding

8P9" 8ig= Press#re 9rinding "olls

!PC !et Present Cal#e

I"" Internal "ate o "et#rnP% Preeasibility %t#dy

% easibility %t#dy

% easibility %t#dy pdate

t/d Dry metric tonnes per day

F nited %tates o America Dollar

'G= $iloatt =o#r

'G=/t $iloatt =o#r per tonne

M Million

OPEH Operating e?pendit#re

&APEH &apital e?pendit#re

&%% &losed side setting

%A<&6< %A9 mill+ open6circ#ited pebble cr#s=ing and ball mill conig#ration

P0, %creen apert#re siBe t=ro#g= =ic= 0, o t=e material passes

:0, :ranser siBe (0, passing t=is siBe)

mm millimetre

micron One t=o#sandt= o a millimetre

c/ complete it=

/ nderlo

O/ Overlo

/% ndersiBe

O/% OversiBe

v/v vol#me per vol#me proportion

/ eig=t per eig=t proportion

g/t grams per tonne



3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 33 O 73

!/m/m !eton orce per s@#are meter per meter lengt= o 8P9" roll

ts/m7/= tonnes second per c#bic meter per =o#r (speciic t=ro#g=p#t or 8P9")

3$ INTRODUCTION

AME& as irst re@#ested at t=e concl#sion o t=e P%+ by t=e &ompania Minera&asale (&M&)+ to perorm a trade6o st#dy comparing t=e relative merits o t=esealternative grinding circ#it conig#rations+ it= a vie to select t=e most appropriateconig#ration or incl#sion in t=e los=eet o t=e proposed &erro &asale Mill at t=e %stage.

:=e concl#sions o t=is earlier st#dy (doc#ment 3-456!6"E6,7) =aving indicatedt=at a 8P9"6based circ#it o#ld be t=e most economical option to p#rs#e+ it as

implemented or detailing in t=e s#bse@#ent %6stage o t=e st#dy. At t=e end o t=eP%+ t=e dierential capital cost as estimated at some F4*M+ avo#ring t=e %A96based circ#it+ b#t an OPEH savings o F.,0/t as alloing a ast paybac'. :=e P%6level %A9 circ#it &APEH and OPEH ere #sed or t=e base case =ile scoping6levelestimates ere prepared to establis= t=e 8P9"6based relevant costs.

Git= t=e establis=ed 8P9" circ#it OPEH and &APEH+ at %6level+ &M& e?pressed are@#irement to revisit t=e earlier concl#sion by incorporating t=e act#aliBed costs or t=e major inp#ts and consider t=e details made available at %+ vers#s t=e #pdatedval#es pegged or t=e %A96based option+ earlier developed at P%6level. :=is reportpresents t=e res#lts o t=is act#aliBed trade6o st#dy and orms part o t=e &erro

&asale easibility %t#dy.

!o additional relevant data as provided rom t=e ,,- testor' campaigns or siBingt=e %A9 mill circ#it+ besides a conirmation t=at t=e earlier *.- 'G=/t or <MGi asapplied to t=e design ore is apparently a valid average. Only t=e incrementalt=ro#g=p#t demand+ o *, 't/d instead o 3, 't/d in t=e earlier st#dy+ as acco#ntedor in resiBing t=e commin#tion e@#ipment. !evert=eless+ t=e %A9 mill circ#it design isdeemed aggressive+ it= nearly all t=e installed %A9 and ball milling poer re@#ired toprocess t=e re@#ired t=ro#g=p#t+ calling as ell or a relatively coarse transer siBe(:0,) beteen t=e to circ#its only deemed ac=ievable by t=e adoption o a %A<&6<circ#it conig#ration (cr#s=ed pebbles ed to close6circ#ited screen+ it= prod#ctmoving into ball mill). Evidence rom benc=mar'ed data are pointing to a idepossible range o speciic %A9 energy re@#irement at t=e lo Ab indicated or t=edesign ore+ made #p o t=e Jear 63 mine o#tp#t. :=is is p#s=ing or a re@#iredconirmation o t=e %A9 poer re@#irements t=ro#g= pilot planting o a representativesample.

AME& consolidated t=e vario#s so#rces o inormation and prod#ced design criteria+los=eets+ process lo diagrams+ mass balances and easibility level capital andoperating cost estimates or t=e 8P9" alternative (see %ections *+ 4 and t=e



3-456!6"E67, 8P9" :O% "ev ,.doc P;9E ** O 73

Appendices or details)+ as part o t=e % deliverables pac'age. %#c= deliverables+or t=e %A9 alternative ere #pdated rom t=e earlier P% level. :=e comparison isbased on t=e re@#irements to deliver a lotation eed prod#ct at a P0, o 3, Km and anominal rate o *, 't/d it= t=e design ore deined as representative o t=e Jear 63ore type mi?t#re. :=e 3, Km #sed earlier as retained or t=is #pdate+ despite t=eselection o a iner target o , Km late in t=e ,,- easibility %t#dy stage+ since s#c=a selection as applied to t=e %A96based option o#ld =ave called or a o#rt= %A9 millto be added+ and a revision o t=e n#mber+ and a possible conig#rationrearrangement+ o t=e accompanying pebble cr#s=ing and ball milling circ#its. :=is int#rn o#ld =ave re@#ired a complete reassessment o t=e e?pected &APEH cost or t=is option.

:=e aorementioned inormation as #sed to estimate and compare t=e dierentialinancial indicators or t=e to alternative los=eets (see %ection 0).

4$ STUDY OBJECTI#ES SCOPE AND DELI#ERABLES

4$1 O;?'<&*0'

:=e primary objective o t=is st#dy #pdate as to present a balanced and #nbiasedcomparison o t=e relative merits o a 8P9"6based grinding circ#it+ as developed to%6level+ vers#s t=e alternate scenario developed earlier or t=e P% involving aconventional %A<&6< circ#it. :=is comparison is meant to provide conirmation+ it=t=e additional design and costing details and acc#racy provided at t=e concl#sion o t=e %+ to allo decision ma'ers to gain #ll conidence in t=e earlier selection o t=e

grinding circ#it or &erro &asale+ calling or t=e incl#sion o 8P9".

4$2 S<+6' )% B)&&'( L*=*&

:=e scope o t=e st#dy as to generate s#icient design data to allo a basiccomparison o t=e economics o t=e to los=eets. :=e list o deliverables belos#mmariBes t=e scope assigned to AME&.

:=e battery limits or t=is trade6o st#dy are2

• pstream 2 &oarse ore stoc'pile eed conveyor

•

Donstream 2 <all mill cyclone overlos to lotation

:=e "OM cr#s=ing operation is identical or bot= t=e %A<&6< and 8P9" los=eets+it= t=e e?ception o a ider coarse ore stoc'pile stac'ing conveyor+ as re@#ired or t=e 8P9"6based circ#it to deal it= sporadic bypassing o a tertiary cr#s=ing circ#itstream. %imilarly t=e lotation los=eets are identical+ it= bot= grinding circ#itsre@#ested to generate a prod#ct it= a P0, o 3, microns+ at a similar sl#rry densityreac=ing t=e ro#g=ing lotation section+ and at t=e same nominal t=ro#g=p#t capability



3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 44 O 73

o *,+,,, t/d. In t=e case o t=e %A96based circ#it+ t=e #tiliBation o t=e availableball mill poer contingency e?isting #nder t=e 8P9"6based option+ is #sed #p topermit a coarsening o t=e transer siBe rom t=e %A9 mills and limit t=eir poer demand.

4$3 D',*0'();,'

:rade6O %t#dy deliverables are2

• Earlier :rade6O st#dy report (doc#ment 3-456!6"E6,7)

• % Design &riteria (doc#ment 3-456!6D&63)

• % Process lo Diagrams it= mass balance data

• %coping PD or %A96based circ#it

• Dierential e@#ipment list c/ indicated siBing o all main e@#ipment• Operating cost estimate

• &apital cost estimate

• inancial analysis

• :rade6O st#dy report (t=is doc#ment 3-456!6"E67,)

5$ TEC!NICAL DESCRIPTION

5$1 T'<.%*<), B)<@>(+%

ig#re 3.6 belo s=os a concept#al bloc' diagram or t=e %A<&6< and8P9" based grinding circ#its considered or t=e &erro &asale Mill.



Pebble cr#s=er

/%iBe

O/%iBe

/ %i Be %creen

3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 00 O 73

F * > ( ' 5 $1 - 1 C +%<'6 & ), B , +<@ D * ) > ( )= +( " (* % * %> C* ( < *& A ,& ' ( %) &* 0 '

S A BC- B C * (< *& ! P "R C * (< * &

&oarse Ore %toc'pile &oarse Ore %toc'pile

%A9 Mill Dry %creen %econdaryO/%iBe &r#s=er

/%iBe

%creen O/%iBe 8P9"

Get %creenO/%iBe

/%iBe

&yclones <all Mills &yclones <all Mills/lo /lo

O/lo to lotation O/lo to lotation

In t=e %A<&6< conig#ration+ t=e added pebble cr#s=ing step complementst=e %A9 mill grinding poer in providing compression cr#s=ing o t=e so6called critical siBe material+ =ic= o#ld ot=erise b#ild #p in t=e %A9 mill.:=e cr#s=ed pebble stream does not ret#rn to t=e %A9 mill b#t insteadproceeds to a screening stage to allo or recycling o t=e coarse raction o t=e pebble stream. :=e ine raction proceeds to t=e ball milling circ#it. :=isarrangement allos or a coarser transer siBe to be obtained+ despite apossble tendency or t=e ore to generate a limited @#antity o inis=edprod#ct t=ro#g= %A9 milling only.

5$2 D'*>% B)*

:=e detailed design criteria doc#ments or bot= grinding alternatives =ave

been p#blis=ed separately (3-456!6D&6,, or t=e base case %A<&6<circ#it+ and 3-456!6D&6, or t=e 8P9" alternative). :able 3.6s#mmariBes and compares t=e 'ey design ass#mptions and data or bot=scenarios.



T ); , ' 5 $ 2 - 1 : ' D ' * > % C ( *& ' ( * )

D'*>% E,'='%& U%*&

SABC-B

O6&*+%

B)' C)'

!P"R:=ro#g=p#t t/d *,+,,, *,+,,,

Primary cr#s=ing circ#it prod#ct P0, (mm) 3, 3,

Primary cr#s=ing circ#it prod#cttop siBe

mm 5, 5,

Design ore blend Jear63 composite

Overall circ#it grinding #tiliBation - -

%econdary cr#s=er circ#it#tiliBation

na 03

>$:ec= A?b ore =ardnessparameter -. na

>$:ec= ta abrasivenessparameter

,.7 ,.7

Estimated <all Mill Gor' Inde? 'G=/t *.-5 *.,-

Design impact cr#s=ing or'inde?

'G=/t 5.* 5.*

%creening eiciency (ass#med) -, -,

lotation eed P0, microns 3, 3,

&yclone overlo sl#rry density / 75 75

!ote2. :=e initial base case sim#lations made #se o t=e 0, mm primary cr#s=er prod#ct. Later iterations it= t=e retained 8P9" circ#it in % adopted 3, mm b#t no comparable sim#lationdata or t=e %A<&6< circ#it ere generated.

:=e secondary cr#s=ing circ#it or t=e alternative+ as per t=e pebble cr#s=ingcirc#it #nder t=e base case+ is e?pected to r#n only 03 o t=e time. :ocompensate or t=is loer #tiliBation+ compared to t=e rest o t=eserespective circ#it1s components+ an additional pebble cr#s=er+ s=ared by allt=ree %A9 grinding lines+ =as been incl#ded in t=e %A<&6< design =ile anintermediate cr#s=ed ore stoc'pile =as been incl#ded in t=e 8P9" circ#it

design.

Per :able 3.6+ t=e ball mill or' inde? or t=e 8P9" circ#it is e?pected tobe 3 loer t=an t=at o t=e %A9 mill6based circ#it+ per t=e testor'cond#cted by Polysi#s =ic= s=oed val#es o #p to - (beore adj#stmentor dierential 0, and P0, beteen tests). :=is red#ction is attrib#ted tot=e so6called micro crac'ing eect+ res#lting rom t=e =ig= stressesimparted on t=e material passing t=ro#g= t=e 8P9" rolls.



5$3 A0)*,);,' I%+(=)&*+%

All inormation pertaining to t=e %A<&6<+ as t=e base case carried in t=e

Preeasibility %t#dy+ is available in separate doc#ments not d#plicated in t=isreport. G=ere relevant+ t=e %A<&6< data is s=on to allo direct comparisonit= t=e relevant alternate case #nder st#dy.

or t=e 8P9" option+ t=e deliverables prepared #p to t=e point =ere t=edecision as made to decrease t=e lotation eed P0,+ rom t=e prior 3, Kmto t=e revised , Km val#e+ ere t=e basis or t=e estimates.

5$4 !P"R T'&+(@ )% S*=,)&*+% R',&

Drill core samples ere provided to Polysi#s to test t=e amenity o t=e ore to

8P9" cr#s=ing. :=e samples tested by Polysi#s incl#ded a Jear to 3blend composite sample as ell as an additional si? individ#al ore typesamples. :=e objectives o t=e tests ere to generate data re@#ired or e@#ipment siBing+ cost estimates and to assess ris's pertaining to t=evariability o t=e orebody N.

%ome o t=e 'ey metrics and indings rom t=ese tests are2

• Liner ear rates increase it= an increase in eed moist#re content.:=e implication is t=at t=e los=eet design and e@#ipment siBings=o#ld aim at minimiBing 8P9" eed moist#re+ e.g. t=ro#g= longer

et screens to ens#re better drainage.• At a 5 moist#re content t=e A:GAL abrasion test yielded a ear

rate o * g/t or t=e composite sample. :=is is classiied by Polysi#sas a lo to medi#m abrasiveness ore response.

• Meas#red ear rates ere all in t=e medi#m abrasiveness range it=minimal variability beteen t=e individ#al ore types.

• :=e speciic energy inp#t at t=e optim#m grinding orce as .0 'G=/t

• A speciic t=ro#g=p#t (m6dot) o , ts/m7/= as meas#red at t=eoptim#m grinding conditions.

• Loc'ed cycle cr#s=ing tests s=oed t=at t=ere o#ld be no b#ild6#p o

a =arder component in closed circ#it operation d#e to preerentialcr#s=ing o soter constit#ents.

• %creening tests cond#cted it= t=e "E9"O prod#ct revealed t=at t=ecompacted ca'es disagglomerate easily d#ring et screening.

• <ond test res#lts indicate t=at a 8P9" prod#ct o#ld re@#ire - lesspoer in t=e s#bse@#ent ball mill to grind a 6* mm eed don to 3micron compared to a cr#s=er prod#ced 6* mm eed. :=econirmatory Labmill test proced#re yielded a smaller dierence.



AME& adopted 3 as a reasonably conservative estimate or t=ee?pected poer red#ction.

•

:ests cond#cted on t=e seven samples indicated only minor dierences in process parameters.

Polysi#s cond#cted sim#lations based on t=eir testing o t=e composites andon proprietary scale6#p actors. %ome o t=e 'ey sim#lation o#tp#ts are2

• A tertiary 8P9" circ#it prod#ct o 6* mm can be prod#ced #sing eit=er ive large .* ? .43 m rolls or si? .5 ? .4 m rolls. &ost and ease o operation dictate t=e latter+ i.e. to parallel #nits or eac= o t=e t=reeidentical grinding lines+ it= one 8P9" dedicated to eeding eac= oneo t=e si? ball mills.

• At a nominal rolls speed o .53 m/s t=is conig#ration ill r#n atappro?imately -, o t=e ma?im#m speed providing an estimated *contingency on t=ro#g=p#t.

• At a -, 8P9" #tiliBation and an estimated average circ#lating loado 3 #sing a c#t siBe on t=e et screen o , mm+ t=e nominal eedto eac= 8P9" ill be +0*5 t/=+ re@#iring 7+37, 'G o motor poer+incl#ding mec=anical losses. :=e #se o to +43, 'G variable speeddrives per 8P9" #nit ill allo or minor variability in bot= t=ro#g=p#tand ore =ardness.

5$5 J:S*=M'& S*=,)&*+% )% M) ;),)%<' <),<,)&*+%

:able 3.36 compares 'ey parameters obtained rom sim#lations+ it= anadj#stment or t=e revised *, 't/d t=ro#g=p#t. G=ere t=ere are minor dierences beteen t=e mass balance and sim#lations+ t=e mass balanceres#lts ta'es precedence as t=is is t=e basis or t=e cost estimate.



T ); , ' 5 $ 5 - 1 S* = , ) &* + % )% M ) B ) , )%<' ! *>. ,* > . &

E,'='%& U%*&

B)'

C)'SABC-B

!P"RO6&*+%

!#mber o %A9 Mills (5,1 ? 51) ea. 7 ,

!#mber o 8P9"1s (.5 ? .4 m) ea. , *

!#mber o cone cr#s=ers ea. 5 0

!#mber o <all Mills (*1 ? 551) ea. * *

Pebble/:ertiary &r#s=ers &irc. Load *3 03

%econdary/Pebble &r#s=ers &%% mm 7 73

Dry %creen <ottom Dec' Apert#re mm 7 53

%ec./Pebble &r#s=ers Prod#ct P0, mm .3 74

%A9 Disc=arge %creen Apert#re mm - !/A

Pebble/ Get %creens Dec' Apert#re mm , ,

8P9" &irc#it &irc#lating Load !/A 3

<all Mill &irc#it eed :0, mm 0.4 3.-

<all Mill %peed critical 40 40

<all Mill <all &=arge v/v 7 0

8$ CAPITAL COST ESTIMATE

:=e capital cost estimate or t=e base case is relecting t=e detailed cost estimateprepared or t=e Preeasibility %t#dy.

or t=e alternate circ#it+ t=e &APEH estimate is t=e o#tcome o t=e % drat stage. Inbot= cases+ t=e major mec=anical e@#ipment is costed rom b#dgetary @#otes+ or inde?ed or dierential siBe rom recent @#otes or similar e@#ipment. Material ta'e6osere eval#ated on t=e basis o t=e plant area topograp=y and t=e general plant layo#tprepared or t=is p#rpose. :=e precision o eac= estimate varies in relation it= t=e levelo st#dy reac=ed it= eit=er one (/63 or P%+ /63 or % drat)

:=e res#lting dierential &APEH estimate is presented in :ables *6 belo. !ote t=atindirect cost elements incl#ding EP&M+ initial ills+ vendor representatives+ and Oner1scost are acco#nted or by a * actor as s=on in :able *6. :=is val#e represents=al o t=e overall 7 bac'6calc#lated rom t=e overall % &APEH estimate+ relecting



T+&), D*'('%&*),CAPE M/

BS C+' DISCIPLINE %A<&6< 8P9", Eart=or's 0. -.*

/, &oncrete ., 5,.

7, %tr#ct#ral %teel 50./ 3*.55, Arc=itect#ral 3.3 .7

3, Mec=anical 735.7 5.4

*, Piping /7.5 /*./

4, Electrical *0. 55.4

0, Instr#mentation //.3 /4.7

T+&), D*('<& C)6' 851$1 747$4

Indirect costs (* o direct) ,5. -.*

&ontingency (,.*) *-., 4-./

CAPE *%<,*%> I%*('<& )% C+%&*%>'%< 24$3 948$3

D*'('%<' !P"R O6&*+% - SA" O6&*+% 121$9

t=e act t=at not all t=e indirect costs are variable and only =al co#ld t=#s be savedt=ro#g= a red#ction o t=e project &APEH.

A ,.* contingency as also added+ per t=e average level calc#lated rom t=e % Drat&APEH estimate.

T);,' 8-1 D*'('%&*), C)6*&), C+& E&*=)&' ; D*<*6,*%' G B)' C)' 0$ !P"R-B)'

:able *6 indicates t=at t=e %A96based scenario o#ld re@#ire a &APEH o#tlayF.-M loer t=an t=e estimation prepared or t=e 8P9"6based circ#it. :able *6 alsoindicates t=at a large portion o t=is incremental e?pendit#re is associated it= t=emec=anical components and str#ct#ral steel costs associated it= t=e 8P9"6basedcirc#it+ partly compensated by =ig=er electrical gear costs or t=e %A96based option.

:=e circ#its donstream o t=e ball milling section are pres#med e@#ivalent in t=eir design or bot= conig#rations eval#ated. :=ey only dier in t=e #tiliBed ball millingpoer base.

&apital cost details are presented in Appendi? <.

7$ OPERATIN" COST ESTIMATE

Detailed operating cost calc#lations are presented in Appendi? &. :able 46 belos#mmariBes t=e poer cons#mption elements+ as e?tracted rom t=e e@#ipment list it=load actors assigned to individ#al e@#ipment+ per Appendi? A6 and A6.



T ); , ' 7 - 1 S 6' < ** < P + ' ( C +% = 6 &* +% <+ % = ' @ . /& + ( '. ''

I& ' =

A ,& ' ( %) &* 0 '

S A B C - B !P " R%A9 Mill 0.0 6

Pebble/%econdary &one &r#s=ers ,.57 ,.*3

8P9" 6 .-

<all Mills .*7 .77

Ancillary E@#ipment .73 .50

T+&), 23$22 17$37

!otes2

. sing indication t=at .3 times t=e net pebble cr#s=er energy (i.e. e?cl#ding poer cons#mption or no6load and transmission losses) e@#ates t=e %A9 mill poer red#ction+ t=e e@#ivalent %A9 only circ#itspeciic poer cons#mption o#ld be -. 'G=/t.

. %peciic poer cons#mption based on test res#lt data indicating .0 'G=/t o 8P9" eed and 33circ#lating load rom et screens =en operated at a c#t6o siBe o , mm.

:able 46 s=os an e?pected red#ction o t=e speciic poer cons#mption o nearly 3or t=e 8P9"6based+ vers#s t=e %A96based circ#it. :=e most signiicant dierence=ig=lig=ted by :able 46 is t=e 3.47 'G=/t poer cons#mption dierence beteen t=eto centerpiece major e@#ipment items (%A9 mill vs. 8P9"). Ancillary e@#ipmentpoer is =ig=er or t=e 8P9" conig#ration as t=is type o circ#it contains moreconveyors and eeders t=an t=e simpler %A<&6< circ#it.

:able 46 belo s#mmariBes all major cost elements or t=e to conig#rations.

T ); , ' 7 - 2 O 6' ( ) &* %> C + & S = = ) (

SABC !P"R D*'('%<'/& /& /& H 0$ SA

Poer .44 .4,7 ,.345 3.9rinding and &r#s=ing Liners ,.*5 ,.7-, 6,.* 654.*9rinding Media .0- ,.437 ,.37* 5.*Operating and "epair %#pplies ,.70 ,.5*4 6,.5- 65*.0

Direct and &ontract Labor ,.,04 ,.4 6,.,7, 675.T+&), 4$235 3$429 $5 19$

Per t=e details on t=e OPEH derivation provided in Appendi? &+ it is noted t=at2

• :=e poer cost as estimated at a price o %F,.,-,/'G= or electricity



• :=e cost or spares and maintenance materials or t=e %A96based circ#it is derivedby applying a actor o 5.3 to t=e &APEH elements representing e@#ipment(mec=anical+ electrical)+ piping+ instr#mentation and b#l' elements e?posed to ear or damage (lig=t steel+ pipes/cables and associated rac's and s#pports+ b#ildingall panels). :=e res#lting val#e (F0.3M) is t=e yearly e?penses re@#ired to cover maintenance spares and materials costs+ e?cl#sive o manpoer.

• or t=e 8P9"6based option+ t=e maintenance spares and materials costs erederived rom a irst6principles approac=+ =ere every piece o e@#ipment asbro'en don into its vario#s main elements and a replacement re@#ency and priceas assigned to eac= o t=em. :=e res#lting s#m o all t=ese individ#al amo#nts+pl#s percentages to cover maintenance o b#l' items s#c= as s#pports+ cabling andinstr#mentation (mostly costed as lots in t=e &APEH derivation)+ yields t=e yearlyb#dget o F*.-M indicated. :=e details o t=is derivation are o#nd in doc#ment

3-456!6DE67,.

• Labor costs are based on t=e b#rdened ages indicated by &M&.

:able 46 indicates t=at t=e 8P9" circ#it is e?pected to be - c=eaper to operate andmaintain t=an t=e e@#ivalent %A<&6< base case circ#it. :=is is attrib#ted to t=esigniicant poer cons#mption advantage oered by t=e 8P9" circ#it+ at 0.- 'G=/t+vers#s 3. 'G=/t re@#ired by t=e %A<&6< circ#it+ incl#ding motor eiciency andtransormation/transmission losses.

<esides t=e poer cost+ t=e majority o t=e remaining cost dierential beteen t=ecirc#its lies in t=e dierence beteen ball ear costs o .-F/t or t=e %A96basedcirc#it+ vers#s t=e 8P9"6based circ#it1s ,.43 F/t.

I t=e costs related to t=e maintenance spares and materials+ liners+ &M&1s on andcontract#al manpoer involved in maintenance activities are tallied toget=er as anoverall maintenance cost+ t=e s#ms compared are F,.-*/t and F,.**/t+ or t=e 8P9" vs.%A<&6< circ#its+ respectively.

$ NET PRESENT #ALUE AND PAYBAC: ANALYSIS

:able 0. presents t=e =ig=lig=ts o t=e inancial analysis perormed.



N P # 5 H / - M D

T ); , ' $ 1 C + = 6) ( ) &* 0 ' E <+%+ =* < P ) ( ) = ' & ' (

!PC Disco#nted , (FM) 4,.4!PC Disco#nted 3 (FM) 77.,%imple Paybac' (years) 5.4I"" () 2 .0

Detailed cas= lo inormation is presented in Appendi? E. :=e analysis is based on t=eolloing ass#mptions2

• 8al o t=e constr#ction capital e?pendit#re is inc#rred to years prior to t=e irstprod#ction it= t=e rest divided e@#ally beteen t=e year beore prod#ction startsand t=e irst year o prod#ction

• Inlation and or'ing capital dierential eects are ass#med to be negligible• Interest earned or paid on c#m#lative cas=lo is not considered• All o t=e initial capital ill =ave been ritten o by mine clos#re

ig#re 0. presents t=e sensitivity o t=e indicated !PC(3) to c=anges to t=e 8P9"circ#it1s main cost drivers.

F *> ( ' - 1 F * %)% < * ), S '% * &* 0 *& A %) , * + !P " R M ) * % D (* 0 ' (

NP#5H S'%*&*0*&

3,,53,

5,,

73,

7,,

3,

,,

3,

,,

3,

6

67, 63 6, 63 6, 63 , 3 , 3 , 3 7,

#)(*)&*+% +% !P"R ;)' <+& -H

&APEH O/A Maint Liners Energy Maint %pares/Mat



9$ CONCLUSIONS AND RECOMMENDATIONS

:=e 8P9" circ#it oers an estimated ,.0,3 F/t operating cost saving+ compared to t=e

%A<&6< circ#it. 8oever+ t=is is oset by an estimated F.-M in additional capitale?pendit#re re@#ired or t=e 8P9"6based circ#it. :=e comparative inancial analysisindicates an #ndisco#nted cas=lo dierential o F4,.4M+ or F77.,M in avor o t=e8P9" based circ#it at a 3 disco#nt rate. :=e I"" or t=is comparative scenario is.0. :=e simple paybac' period+ i.e. t=e d#ration re@#ired to pay bac' t=e additional&APEH #sing t=e OPEH saving+ is 5.4 years.

On t=is basis+ t=e inancial beneits o adopting a circ#it comprising 8P9" asreplacement to t=e %A9 milling step or developing t=e &erro &asale processing plantdesign criteria =as been reconirmed.

AME& is o t=e opinion t=at t=e intangible opport#nities oered by t=e 8P9" circ#it alsoovers=ado t=e ris's associated it= t=is circ#it+ s#c= as2

• :=e %A9 circ#it is simple and proven. :=e 8P9" circ#it is more comple?+ it=signiicantly more e@#ipment. :=#s+ t=ere is more t=at can go rong t=ro#g=imbalances beteen e@#ipment or circ#it capacities in a 8P9" circ#it.

• :=e et and dry screening sections do not incl#de any bac'#p #nits+ per circ#it.:=e loss o one screen =ile in operation o#ld red#ce t=e t=ro#g=p#t potentialo t=e circ#it.

• 8P9" circ#its contain additional e@#ipment (screens+ c=#tes+ bins+ eeders andconveyors) =ic= demand additional maintenance reso#rces (personnel+ capitaland normal spares+ are=o#sing loor space+ administrative processes+ etc.)

• %econdary cr#s=ing and 8P9" demands e?cellent tramp metal detection andremoval to protect st#ds. Eective tramp metal detection on slo moving eedersposes many design problems and t=e scale o t=e &erro &asale operation ille?acerbate t=is c=allenge.

• %A9 circ#its can accommodate clayey ore constit#ents easily. &lay in t=e 8P9"circ#it ill ca#se b#ild6#p at material transer points+ c=#te bloc'ages+ conveyor scraper/cleaning iss#es+ red#ced 8P9" t=ro#g=p#t and increased ear d#e toincreased eed moist#re content+ incomplete disagglomeration o la'es+ etc.9eological reports on t=e &erro &asale orebody indicates t=at t=ere are minimalclayey constit#ents in t=e orebody+ alt=o#g= t=e composite prepared or testor'to em#late t=e early mine o#tp#t+ mostly composed o diorite+ =ad almost .3clay6li'e minerals. It s=o#ld be noted t=at even small localiBed incl#sions in t=is

massive orebody co#ld rea' =avoc to t=e 8P9"6based circ#it t=ro#g=p#tcapability.

• A 8P9" circ#it demands additional d#st s#ppression+ containment ande?traction systems. D#st generation represents bot= a cost as ell as potentialenvironmental and =ealt= ris'.

A more complete list o pros and cons as p#blis=ed it= t=e earlier :O% completed att=e preeasibility stage (doc#ment 3-456!6"E6,7).



Most o t=e ris's listed or t=e 8P9" circ#it can be controlled at t=e design staget=ro#g= incl#sion o appropriate ris' mitigation meas#res and operating strategies in t=elos=eet.

:=e 8P9"6based circ#it is t=ereore recommended to be t=e preerred commin#tionapproac= carried or t=e easibility st#dy los=eet.

1$ REFERENCES

. <#rc=ardt+ EgbertQ 8ig= Press#re 9rinding+ %creening R 9rindability :ests on a9old/&opper Ore or t=e &erro &asale Project o $inross/<arric' carried o#t at t=ePolysi#s "esearc= &entre inal :est "eportQ 3 >#ne ,,0. (see Appendi? 6 o P%

doc#ment 3-456!6"E6,7)

. &ontract %#pport %ervicesQ inal report to $inross 9old "es#lts o &erro &asaleProposed &ommin#tion &irc#it 8P9" vs. %A<&6< easibility %im#lation %t#dyQ -%eptember ,,0. (see Appendi? 6 o P% doc#ment 3-456!6"E6,7)



A PP END I A E U I P MEN T L IS TS

A 6 6'% * A - 1 !P " R - B )' C *( < * & E * 6 = ' % & L * & F SU- , ' 0 ' ,

.



A 6 6'% * A - 2 S A B C - B - B )' C * ( < *& E * 6 = '%& L * & 6 ) & ' P F S-, ' 0 ' ,

3-456!6"E67, 8P9" :O% "ev ,.doc P;9E , O 73



3-456!6"E67, 8P9" :O% "ev ,.doc P 9E O

A PP END I B C A P I T A L C O S T ES T I M A T E S

A 6 6'% * B - 1 C A P E ' & *= ) & ' G S A " M*, , C* ( < *& S <'%) (* + A ? & ' ( += P F S -

, ' 0 ' ,



3-456!6"E67, 8P9" :O% "ev ,.doc P 9E O

A 6 6'% * B - 2 P ( ' ,* = *%) ( A ? &' P F S -, ' 0 ' , C A PE ' &*= ) & ' G S A " M*, ,C *( < *& S <'%) ( * +



A PP END I C O PE R A T I N " C O S T ES T I M A T E S

T ); , ' C - 1 S A BC - B " ( *% *% > L * % ' E * 6 = ' % & )% P + ' ( C+% = 6 & *+ % L * &

:=e dra actor represents t=e raction o installed poer being cons#med =en t=e e@#ipment is r#nning normally. :=ecirc#it #tiliBation actor acco#nts or all dontime incl#ding intermittent #sage e.g. s#mp p#mps =ic= is #sed only =en

spillage occ#rs. :ransmission and transormer losses are ass#med to be less or =ig= voltage s#pply.

3-456!6"E67, 8P9" :O% "ev ,.doc P ;9E 7 O 73



A(') E*6='%& D'<( *6&*+%I%&$

KO6$

K

U%*& P+'( F)<&+( A0'$ C+%=

I%&),,' D() D()%@ F)<&+( @

M+&+( E $/T()%

C*(<*& T()%=$U&*, L+'

U%*& T@

75, %toc'pile "eclaim eeder - * 0, ,.03 *0 ,.- .,5 *3 75 :!!EL "E&LAIM D%: &OLLE&:O" 7 7 04 ,.03 3- ,.- .,5 3

75 %A9 MILL EED &O!CEJO" 7 7 7, ,.03 4 ,.- .,5 *

75 !EG O"E <EL: %&ALE 7 7 ,.03 ,.- .,5

75 A:OMA:I& %A9 MILL <ALL &8A"9I!9 %J%:EM 7 7 7 ,.03 7 ,.,* .,5 , 5 %A9 MILL 7 7 ,+00, ,.-- ,+*4 ,.- ., -+5- 3

5 %A9 MILL L<E !I: 7 7 5-7 ,.03 5- ,.-7 .,5 5,*

5 %A9 MILL MO:O" &OOLI!9 !I: 7 7 750 ,.03 -* ,.-7 .,5 0*

5 %A9 MILL DI%&8A"9E %&"EE! * 7 ,, ,.03 03 ,.,0 .,5 4

5 %A9 OCE"8EAD &"A!E , ,.03 0 ,.- .,5 0

5 >I< &"A!E O" %A9 LI!E"% 7 7 0 ,.03 * ,.,0 .,5 5 %A9 MILL LI!E" 8A!DLE" 43 ,.-, *0 ,. .,5 0

5 %A9 MILL POGE"ED EED &8:E :"A!%PO":E" , ,.-, , ,., .,5 ,

5 &O!CEJO" S* 6 %A9 MILL %&"EE! OCE"%ITE &O!CEJO" * ,.03 7 ,.- .,5 5

5 E"IET :JPE MOCI!9 <EL: MA9!E: 3 ,.03 7 ,.- .,5

5 <EL: %&ALE ,.03 ,.- .,5

5 &O!CEJO" S- 6 %A9 MILL %&"EE! OCE"%ITE &O!CEJO" * ,.03 7 ,.- .,5 5

5 OCE"%ITE "E&J&LE GEI98:OME:E" ,.03 ,.- .,5

5 ME:AL DE:E&:O" ,.03 ,.- .,5

5 %8::LE &O!CEJO" S, 7 ,.03 4 ,.- .,5 *

5 PE<<LE &"%8E" <EL: EEDE" 3 5 5, ,.03 75 ,.03 .,5 7,

5 PE<<LE &O!E &"%8E" 3 5 453 ,.05 *0 ,.03 .,5 33*

5 PE<<LE &O!E &"%8E" L<E 3 5 7, ,.03 -* ,.0* .,5 43 5 &O!CEJO" S3 6 &"%8ED PE<<LE DI%&8A"9E &O!CEJO" *3 ,.03 33 ,.- .,5 3

5 &O!E &"%8E" DI%&8A"9E %&"EE! 3- ,.03 3, ,.- .,5 50

5 &"%8ED PE<<LE% EED PMP<OH A9I:A:O" 43 ,.03 *5 ,.- .,5 *

5 &"%8ED PE<<LE EED PMP 7 7 3, ,.03 7 ,.- .,5 ,5

5 PE<<LE &"%8E" A"EA OCE"8EAD &"A!E 33 ,.03 54 ,.,3 .,5

57 &J&LO!E EED PMP * * +,5 ,.0* +450 ,.- .,5 +*43

57 <ALL MILL * * *+,,, ,.-37 3+50 ,.- .,5 5+*, 0

57 <ALL MILL L<E !I: * * 70, ,.-3 7* ,.-7 .,5 73,

57 <ALL MILL MO:O" &OOLI!9 !I: * * ,.03 7 ,.-7 .,5 7 Lig=ting 3 ,.-3 - ,.-3 .,5 0 8eat and ventilation systems 7+,,, ,.-3 +03, ,.* .,5 +40

18T+&),

3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 5 O 73



T ); , ' C - 2 !P " R " ( * % * % > L * % ' E * 6 = ' % & ) % P + ' ( C+% = 6 &* + % L * &

:=e actors applied =ave t=e same meaning as in :able &6.

3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 3 O 73



A(') E*6='%& D'<(*6&*+%I%&$

KO6$K

U%*& P+'( F)<&+( A0'$ C+%=6&*+%

I%&),,' D() D()%@ F)<&+( @

C*(<*& T()% T()%=$U&*, L+'

U%*& T+&),@ @

75 %:O&$PILE "E&LAIM AP"O! EEDE" S 43 ,.0 */ ,.-5 .,5 *, *,75 %:O&$PILE "E&LAIM AP"O! EEDE" S

%:O&$PILE "E&LAIM AP"O! EEDE" S5%:O&$PILE "E&LAIM AP"O! EEDE" S3"E&LAIM &O!CEJO" S"E&LAIM &O!CEJO" S!EG O"E <EL: %&ALE S!EG O"E <EL: %&ALE S:!!EL "E&LAIM D%: &OLLE&:O" S:!!EL "E&LAIM D%: &OLLE&:O" SPLA!: AI" &OMP"E%%O"%EL &LEA!I!9 <EL: MA9!E: S%EL &LEA!I!9 <EL: MA9!E: S%E&O!DA"J &"%8I!9 <I! S EED :"IPPE" &O!CEJO"%E&O!DA"J &"%8I!9 <I! S EED :"IPPE" &O!CEJO"%EL &LEA!I!9 <EL: MA9!E: S60ME:AL DE:E&:O" S60%E&O!DA"J &"%8E" EED <EL: EEDE" S60&O!E &"%8E"&O!E &"%8E" L<E !I:%E&O!DA"J &"%8I!9 DI%&8A"9E &O!CEJO" S%E&O!DA"J &"%8I!9 DI%&8A"9E &O!CEJO" S<EL: %&ALE<EL: %&ALE%E&O!DA"J &"%8E" D%: &OLLE&:O"%E&O!DA"J &"%8I!9 %MP PMP%E&O!DA"J &"%8I!9 <ILDI!9 OCE"8EAD &"A!EDICE"9I!9 PA! EEDE" SDICE"9I!9 PA! EEDE" SDICE"9I!9 PA! EEDE" S7DICE"9I!9 PA! EEDE" S5&O!CEJO" %AMPLE"&O!CEJO" %AMPLE"D"J <A!A!A %&"EE! SD"J <A!A!A %&"EE! SD"J <A!A!A %&"EE! S7D"J <A!A!A %&"EE! S5

43 ,.0 */ ,.-5 .,5 *, *,

75 43 ,.0 */ ,.-5 .,5 *, *,

75 43 ,.0 */ ,.-5 .,5 *, *,

75 0, ,.05 3 ,.-5 .,5 5- 5-75 0, ,.05 3 ,.-5 .,5 5- 5-75 / ,.03 ,.-* .,5

75 / ,.03 ,.-* .,5

75 04 ,.07 33 ,.-3 .,5 35 3575 04 ,.07 33 ,.-3 .,5 35 3575 *, ,.33 00 ,.- .,5 05 05

75 3 ,.03 7 ,.- .,5 / /

75 3 ,.03 7 ,.- .,5 / /

75 0, ,.0 5* ,.-5 .,5 57 5775 0, ,.0 5* ,.-5 .,5 57 5775 0 0 0 ,.07 * ,.- .,5 * 50

75 0 0 / ,.07 ,.- .,5 ,

75 0 0 43 ,.0* *3 ,.03 .,5 34 53475 0 0 453 ,.4- 3-, ,.03 .,5 3// 5+4-75 0 0 -, ,.04 40 ,.- .,5 43 *,,75 +*0, ,.0 +730 ,.-5 .,5 +77, +77,75 +*0, ,.0 +7* ,.-5 .,5 +77 +7775 / ,.07 ,.-* .,5

75 / ,.07 ,.-* .,5

75 04 ,.03 3- ,.- .,5 3/ 375 43 ,.*3 5- ,.- .,5 54 54

75- -4 ,.03 0/ ,.- .,5 4- 4-

75- 43 ,.0 * ,.00 .,5 3* 3*

73 43 ,.0 * ,.00 .,5 3* 3*

73 43 ,.0 * ,.00 .,5 3* 3*

73 43 ,.0 * ,.00 .,5 3* 3*

73 0 ,.03 * ,., .,5 , ,

73 0 ,.03 * ,., .,5 , ,

73 43 ,.03 *5 ,.- .,5 * *

73 43 ,.03 *5 ,.- .,5 * *

73 43 ,.03 *5 ,.- .,5 * *

73 43 ,.03 *5 ,.- .,5 * *

3-456!6"E67, 8P9" :O% "ev ,.doc P;9E * O 73



A(') E*6='%& D'<(*6&*+%I%&$

KO6$

K

U%*& P+'( F)<&+( A0'$ C+%=6&*+%

I%&),,' D() D()%@ F)<&+( @

C*(<*& T()% T()%=$U&*, L+'

U%*& T+&),@ @

73 D"J %&"EE! !DE"%ITE &O!CEJO" S

D"J %&"EE! !DE"%ITE &O!CEJO" S

<EL: %&ALE S

<EL: %&ALE S

%EL &LEA!I!9 <EL: MA9!E:

%EL &LEA!I!9 <EL: MA9!E:D"J %&"EE! D%: &OLLE&:O"

D"J %&"EE! %MP PMP

D"J %&"EE! OCE"8EAD &"A!E S

D"J %&"EE! OCE"8EAD &"A!E S

PLA!: AI" &OMP"E%%O"

ME:AL DE:E&:O" S6*

8P9" EED <EL: EEDE" S6*

8P9" S MO:O" &OOLI!9

8P9"

8P9" S 8JD"ALI& D"ICE8P9" S L<E

8P9" DI%&8A"9E &O!CEJO" S

8P9" DI%&8A"9E &O!CEJO" S

I!E %:O&$PILE EED &O!CEJO" S

8P9" EEDE" OCE"8EAD &"A!E

:E":IA"J &"%8I!9 D%: &OLLE&:O"

8P9" %MP PMP






:E":IA"J &"%8E" DI%&8A"9E P"OD&: %AMPLE"

:E":IA"J &"%8E" DI%&8A"9E P"OD&: %AMPLE"

<A!A!A %&"EE! S6GE: %&"EE! OCE"8EAD &"A!E

I!E %:O&$PILE D%: &OLLE&:O" S

I!E %:O&$PILE D%: &OLLE&:O" S

I!E %:O&$PILE A"EA %MP PMP

I!E %:O&$PILE A"EA %MP PMP

PLA!: AI" &OMP"E%%O"

GE: %&"EE! EED &O!CEJO" S6

GE: %&"EE! O/% DI%&8A"9E &O!CEJO" S

GE: %&"EE! O/% DI%&8A"9E &O!CEJO" S

GE: %&"EE! O/% DI%&8A"9E &O!CEJO" S DI%&8A"9E MO

GE: %&"EE! O/% DI%&8A"9E &O!CEJO" S DI%&8A"9E MO

733 ,.0- 7* ,.-3 .,5 77 77

73 733 ,.0- 7* ,.-3 .,5 77 77

73 ,.07 ,.-* .,5

73 ,.07 ,.-* .,5

73 3 ,.07 ,.- .,5

73 3 ,.07 ,.- .,5 73 04 ,.03 3- ,.-5 .,5 3* 3*

73 53 ,.*3 - ,.- .,5 0 0

73 -4 ,.03 0 ,. .,5 , ,

73 -4 ,.33 0 ,. .,5 , ,

73 *, ,.03 7* ,.- .,5 7, 7,

73 * * ,.07 ,.- .,5 4

73 * * 43 ,.03 *5 ,.- .,5 * 7*4

73 * * 3 ,.04 7 ,.- .,5 7 43

73 * * 3+3,, ,.43 5+, ,.- .,5 7+053 7+,*0

73 * * 3, ,.04 55 ,.- .,5 5 3,

73 * * 33 ,.04 50 ,.- .,5 5* 43

73 +*0, ,.0* +553 ,.-5 .,5 +53 +53

73 +*0, ,.0* +553 ,.-5 .,5 +53 +53

73 +, ,.0* -*7 ,.- .,5 -7 -7

73 * ,.03 3 ,.- .,5 3, 3,

73 04 ,.03 3- ,.-* .,5 3- 3-

73 - ,.33 , ,.- .,5 , ,

73 3 ,.07 ,.- .,5

73 3 ,.07 ,.- .,5

73 * ,.07 3 ,. .,5 3 3

73 * ,.07 3 ,. .,5 3 3

73 0 ,.07 ,* ,. .,5

73 0 ,.07 * ,., .,5 , ,

73 0 ,.07 * ,., .,5 , ,

73 -, ,.07 43 ,.- .,5 4 03-

73 -4 ,.07 0 ,. .,5 0 0

73 04 ,.03 3- ,.-* .,5 3- 3-

73 04 ,.03 3- ,.-* .,5 3- 3-

73 - ,.*3 ,.- .,5

73 - ,.*3 ,.- .,5

73 *, ,.33 00 ,.- .,5 05 05

73 , ,.04 -* ,.-5 .,5 -5 +5

73 733 ,.05 -0 ,.-5 .,5 - -

73 733 ,.05 -0 ,.-5 .,5 - -

73 7 ,.03 7 ,. .,5 , ,

73 7 ,.03 7 ,. .,5 , ,

3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 4 O 73



A(') E*6='%& D'<(*6&*+%

I%&$

K

O6$

K

U%*& P+'( F)<&+( A0'$ C+%=

I%&),,' D() D()%

@ F)<&+( @C*(<*& T()% T()%=$

U&*, L+'U%*&@

73 :"A!%E" &O!CEJO" S

:"A!%E" &O!CEJO" S

<EL: %&ALE S6

&J&LO!E EED PMP S

&J&LO!E EED PMP S

&J&LO!E EED PMP S7

&J&LO!E EED PMP S5

&J&LO!E EED PMP S3

&J&LO!E EED PMP S*

<ALL MILL S MO:O" &OOLI!9 !I: S

<ALL MILL S L<E !I:

<ALL MILL S

<ALL MILL S MO:O" &OOLI!9 !I: S

<ALL MILL S L<E !I:

<ALL MILL S

<ALL MILL S 7 MO:O" &OOLI!9 !I: S7

<ALL MILL S7 L<E !I:

<ALL MILL S7

<ALL MILL S 5 MO:O" &OOLI!9 !I: S5


<ALL MILL S5<ALL MILL S 3 MO:O" &OOLI!9 !I: S3


<ALL MILL S3

<ALL MILL S * MO:O" &OOLI!9 !I: S3

<ALL MILL S* L<E !I:

<ALL MILL S*

0, ,.07 7 ,.- .,5 7

73 0, ,.07 7 ,.- .,5 7

73- ,.07 ,.-* .,5 73- +7,* ,.4* --7 ,.- .,5 -3

73- +7,* ,.4* --7 ,.- .,5 -3

73- +7,* ,.4* --7 ,.- .,5 -3

73- +7,* ,.4* --7 ,.- .,5 -3

73- +7,* ,.4* --7 ,.- .,5 -3

73- +7,* ,.4* --7 ,.- .,5 -3

73- ,.03 - ,.-7 .,5 0

73- 70, ,.03 77 ,.-7 .,5 77

73- *+,,, ,.0 +-*, ,.- .,5 +5,

73- ,.03 - ,.-7 .,5 0

73- 70, ,.03 77 ,.-7 .,5 77

73- *+,,, ,.0 +-*, ,.- .,5 +5,

73- ,.03 - ,.-7 .,5 0

73- 70, ,.03 77 ,.-7 .,5 77

73- *+,,, ,.0 +-*, ,.- .,5 +5,

7* ,.03 - ,.-7 .,5 0

7* 70, ,.03 77 ,.-7 .,5 77

7* *+,,, ,.0 +-*, ,.- .,5 +5, 7* ,.03 - ,.-7 .,5 0

7* 70, ,.03 77 ,.-7 .,5 77

7* *+,,, ,.0 +-*, ,.- .,5 +5,

7* ,.03 - ,.-7 .,5 0

7* 70, ,.03 77 ,.-7 .,5 77

7* *+,,, ,.0 +-*, ,.- .,5 +5, Lig=ting 43 ,.-3 4 ,.-4 .,- 43 8eat and ventilation systems +0,, ,.-3 +4, ,.* .,- +3

1T+&),

3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 0 O 73



3-456!6"E67, 8P9" :O% "ev ,.doc P 9E -- O

T ); , ' C - 3 C + = 6 ) (* + % + ')( C + &

%peciic Gear rate

Energy (per replacement re@.) Price &ost

E*6='%& D'<(*6&*+% 'G=/t 'g/'G= g/t F/'g F/ton

!P"R

%ec. &r#s=er MP ,,, ,.*, ,.,7 7.4 5.,0* ,.,3*:ert. 8P9" 6 .5 D ? .4 G (m) .- ,.*,<all Mill 6 4.-m D ? 7.5m L ( * ? 55 t ) .77 ,.,,7 7.0 .77* ,.,45

$39SABC

%A9 Mill 6 .-m D ? *.4m L ( 5, ? t 0.0 ,.,,0 *4.7 .77* ,.34Pebble &r#s=er MP ,,, ,.73 ,.,4 3.- 5.,0* ,.,5<all Mill 6 4.-m D ? 7.5m L ( * ? 55 t ) .*7 ,.,,7 73.5 .77* ,.,07

$284

" ( * % * % > M ' *) C+ % = 6 &* + %%peciicEnergy Gear rate Price &ost

E*6='%& D'<(*6&*+% 'G=/t 'g/'G= g/t F/'g F/ton

!P"R

<all Mill 6 4.-m D ? 7.5m L ( * ? 55 t ) .77 ,.,4, 4-.4 ,.-3 ,.437$753

SABC

%A9 Mill 6 .-m D ? 4.55m L ( 5, ? 5.5 0.0 ,.,53 7-0.3 .- ,.53,<all Mill 6 4.-m D ? 7.5m L ( * ? 55 t ) .*7 ,.,4, 00., ,.-3 ,.07-

1$29

:=e 8P9" based ear cost o ,.* E#ro/tonne as s#pplied by t=e vendor based ontestor' cond#cted and proprietary scale6#p actors calling or a roll lie o *.,,,=o#rs. :=is as adj#sted or an estimated ear lie o 3+7,, =o#rs+ per benc=mar'ingo &erro Cerde1s operations and acco#nting or roll speed and eed moist#redierentials

All ot=er liner ear rates are based on replacement re@#ency benc=mar's.

:=e empirical <ond correlation beteen steel mass loss per 'G= and t=e abrasioninde?+ Ai+ determined d#ring t=e ,,, easibility %t#dy+ as #sed to derive t=egrinding media cons#mption. :o compensate or advances in materials andman#act#ring processes since t=e elaboration o t=e original <ond empiricale@#ations+ a credit o 7, o t=e calc#lated val#e as applied.



3-456!6"E67, 8P9" :O% "ev ,.doc P 9E 7,7, O

T ); , ' C - 4 C + = 6 ) (* + % + O 6 ' ( ) &* %> )% M ) *% & '%)%<' S 66 ,* ' C + &

Estimated ann#al maintenance spares and s#pplies cost (FM) 0.3 *.-&APEH e?cl. Eart=or's+ &ivil and Installation costs 415$2 417$ o e@#ipment &APEH e@#ivalent ,.,53 ,.,*3

(F/t) $32 $487

:able &65 s#mmariBes t=e calc#lation o t=e estimated ann#al s#pplies and sparescosts. :=e &APEH applicable to t=e commin#tion section+ e?cl#ding non6earable civilelements (concrete+ eart=moving and constr#ction) ere obtained rom :able <6 or t=e %A96based circ#it. or t=e 8P9"6based circ#it+ t=e val#e obtained rom t=e % isbased on applying a irst6principles approac= to t=e derivation o t=e ann#al b#dget or maintenance spares and materials.

T ); , ' C - 5 C + = 6 ) (* + % + E & *= ) & ' L);+( C + &

B( 4'%'4 SABC-B <*(<*& !P"R <*(<*&),)( 6'( E=6,+'' C+& C+& /&+% K C+& C+& /&+

A(') '=6,+'' /)%%= /& E=6,+'' /)%%= /&

Operations :

Operator (9rinding/8P9") 57+7 5 47+00 ,.,,7, 5 47+00 ,.,,

Operator (%ec. &r#s=ing R %creening) 57+7 , , ,.,,,, 5 47+00 ,.,,

8elper 6 Operations 7+303 0 *,+*44 ,.,,53 7-+,* ,.,,

Operator (Get %creens R &onveyors) 57+7 , , ,.,,,, 5 47+00 ,.,,Maintenance :

Maintenance Planner 03+*3 03+*3 ,.,,3 .77 5+37 ,.,,

Maintenance :ec=nician 54+5 54+5 ,.,,,0 .77 *7+0 ,.,,

Instr#mentation :ec=nician 54+5 .77 ,+*5- ,.,,- 7 5+*7 ,.,,

Millrig=t/Gelder/<oilerma'er 54+5 7.77 *7+0 ,.,,- 5 +70+,0 ,.,

8elpers 6 maintenance 7+303 *.*4 4+7 ,.,,70 , 73+054 ,.,,

Electrician 54+5 5.*4 +-- ,.,,70 4 77+-50 ,.,,

&ontractors 7+3,+4*3 ,.,3*7 7+*4*+-4* ,.,*

Metallurgy :

8elpers6Metall#rgy 7+303 .77 57+55* ,.,,,0 *3+*- ,.,,

:otal 3+,5+*47 $973 *+4*0+34 $11

!otes2

• It as ass#med t=at t=e maintenance and metall#rgy cres assigned to t=egrinding area o#ld be appro?imately one t=ird o t=e total plant strengt=.

• Additional metall#rgical =elpers are b#dgeted or t=e 8P9" as t=e or'load ise?pected to increase disproportionately it= t=e additional belt c#ts and gradinganalysis re@#ired or t=e additional conveyors and screens.

• &ontractors costs ere estimated in detail or t=e base case ,,- easibility %t#dyand is estimated at F7.*0 M/a. :=e e@#ivalent ig#re or t=e %A<& circ#it+ at t=e,,- Preeasibility level+ as F7.3 M/a.



3-456!6"E67, 8P9" :O% "ev ,.doc P 9E 77 O

A PP END I D D R A I N " S

S A "- B )' O 6 &* +% P ( + <' F , + D * )> ( ) =



3-456!6"E67, 8P9" :O% "ev ,.doc P 9E 77 O

A PP END I E C A L C U L A T IO N S

E - 1$ S A " P + '( )% S *' C ) , < , ) &*+%

%A9 &irc#it 8P9" &irc#it &omments

:otal %peciic Poer or &ommin#tion P% '/t -.503 7.3 50

P% Ore :onnage tpd (&alendar) 3,+,,, 3,,,, ,,

% pdated Ore :onnage tpd (&alendar) *,+,,, *,+,,, ,,

t/op =r 4+5* 4+5*

P% operating -, -,

% Operating - -

:otal Poer or &ommin#tion P% '=/d 7+,7+7 +,-+*35 50

'G=/op =r 7-+5-4 -7+-*3

:otal Poer or &ommin#tion % '=/d 7+35+0-3 +745+74- 50

'G=/op =r 3-+*5 ,4+0-5

Dierence 4 4

8P9" circ#it et screen c#t siBe mm ,

8P9" circ#it &L .33

B),, M*,,

Mill Diameter m 4.- 4.- ,,

Mill Lengt= m 7.5 7.5 ,,

%peciic Poer P% 'G/t .- -.040 5

Micr6crac'ing &redit P% 3 ,3

Particle %iBe ines &redit P% .*, .*,

Micr6crac'ing &redit % 3.,, ,3

Particle %iBe ines &redit % , ,.,, ,,

Drive :rain Eiciency (9irt= gear to pinion) ,.-43 ,.-43 .3 loss or girt= gear to pinion drive system

losses.

Poer Di or 0, P% 6., --

Poer Di or 0, % .5 ,

0, P% mm *.5, 7.0 *0

microns *+5,, 7+0,,

0, % mm -.0 3.- *3 , mm c#t siBe at et screen or 8P9"

microns -+0, 3+-7,

P0, P% microns 3, 3,

P0, % microns 3, 3,

%peciic Poer % 'G/t . ,

<M Gi P% 'G=/tonne *.-5 *.-5 ,,

<M Gi % 'G=/tonne *.-5 *.-5 ,, <ac' calc#lated rom E@. List Poer to

ens#re #sing same basis or calc#ations

beteen %A9 option and 8P9" option.

G P% 'G/t 7.4* 7.45 ,,

G % 'G/t . .*7 ,5

G % it= energy credits and drive train e 'G/t .57 .77

<all Mill Poer P% 'G=/d +*57+,,* +574+35 5

'G=/op =r 4*+,*3 **+35,

<all Mill Poer % 'G/d +,,+,33 +07+,-

'G=/op =r -+500 0+3

'G/mill 3+50 7+*0*

<all Mill Poer &ons#mption 'G=/t .* .7

!#mber o Mills eac= * *

*



%A9 &irc#it 8P9" &irc#it &omments

%A9 &irc#it

Poer or %A9 &irc#it 'G=/d +3,5+05,

"atio o poer %A92Pebble &r#s=er P% 0.74

Percentage o !et Poer or Pebble &r#s=er .3 consider 3, 'G o no load as gross+ 0

drive losses or cr#s=er+ .3 or %A9

Percentage o Poer or Pebble &r#s=er % .3

!et poer or pebble cr#s=er % 'G=/d 74+0,4

'G=/op =r +4

!#mber o pebble cr#s=ers % eac= 5

!et poer per pebble cr#s=er % 'G 509ross pebble cr#s=er poer % 'G *0 incl#de no6load poer and drive losses o 0

!et Pebble &r#s=er Poer &ons#mption 'G=/t ,.5

Poer or %A9 Mill % 'G=/d +5,+7 . ta'ing credit or net cr#s=ing poer at .3 'G

%A9/'G cr#s=er

:otal %A9 poer demand 'G=/op =r *7+047

!#mber o %A9 Mills % #nits 7

Poer per %A9 Mill % 'G -+300

'G=/op =r +- 0+33 =p installed motor

'G=/t 0.0 -.5 'G=/t it= pebble cr#s=er poer converted

to %A9 e@#ivalent

"atio o %A9 Mill Poer !e vs. P% .

N' M*,, D*)='&'( = 12$19 ,3

& 4$ Limit Ma?im#m Diameter to 5, t ma?im#m.

N' M*,, L'%>&. = 7$32 ,-

& 24$2

3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 77 O 73



E - 2$ F * %)%< *), A %) , *

3-456!6"E67, 8P9" :O% "ev ,.doc P;9E 75 O 73



A PP END I F M ) B, )%<'

M ' & ) ,, ( > * < ) , B ) ,)%<' G D ' * >%

159742-N-RE-302_R0 (Trade Off Study HPGR vs SAG Economic Comparision Casale)

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