M T a M Mind Tech Aga Mind Doro Hnic Ta N Dana O Re Al R Nicke Ao
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Mindoro Resources Ltd Technical Report for the Agata Nickel Laterite Project, Mindanao, Philippines 20 Dec 2011 2143-RPT-0014 Title Page The “Technical Report for the Agata Nickel Laterite Project, Mindanao, Phhilippines” (Technical Report) is produced at the request of Mr Jon Dugdale, CEO of Mindoro Resources Ltd (MRL). The Project includes the development, mining and processing of the Agata nickel laterite deeposit which is located in an established mining district of Surigao in Northern Mindanao in the Philippines. Independent Qualified Persons: Mark Gifford M.Sc. (Hons), FAusIMM, Geological Consultant Dallas Cox, B Eng (Mining) MAusIMM CP, Principal Consultant of Crystal Sun Consulting Monte Christie, PE, GE, Senior Geotechnical Engineer at Ausenco Ruth Sherrit, B Eng (Metallurgy) MAussIMM CP, Principal Process Engineerr Ausenco Effective Date: 20 December 2011 Submitted to: Mindoro Resources Ltd Distribution: Jon Dugdale, Mindoro Resources Ltd 2143-RPT-0014 i Table of Contents 1 Summary 1 1.1 Description of Property 1 1.2 Geology and Mineralisation 2 1.3 Minerals Resource Estimates 4 1.4 Mineral Reserve Estimates 5 1.5 Mining 5 1.6 Metallurgy 6 1.7 Ore Processing 12 1.8 Environment 13 1.9 Economic Analysis 14 2 Introduction 19 2.1 For Whom the Report Has Been Prepared 19 2.2 Purpose of the Report 19 2.3 Sources of Information 19 2.4 Scope of Personal Inspections 20 3 Reliance On Other Experts 21 3.1 Mindoro Resources Limited 21 3.2 Mineral Commerce Services 21 3.3 Gaia South, Inc. - Environmental Consultants 21 4 Property Description and Location 22 4.1 Location 22 4.2 Land Tenure 23 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography 24 5.1 Topography 24 5.2 Accessibility 25 5.3 Climate 25 6 History 26 7 Geological Setting and Mineralisation 27 7.1 Introduction 27 7.2 Geological Setting 28 8 Deposit Types 30 9 Exploration 32 10 Drilling 32 11 Sample Preparation, Analyses and Security 37 11.1 Sampling Method and Approach 37 11.2 Sample Preparation, Analysis and Security 39 12 Data Verification 47 12.1 Data Verification 47 12.2 Bulk density determinations 48 13 Mineral Processing and Metallurgical Testing 50 13.1 Introduction 50 13.2 Previous Testwork Program 50 13.3 PFS Testwork Program 59 13.4 Comminution and Scrubbing Testwork 91 13.5 Flow Properties and Conveyability of Ores 95 14 Mineral Resource Estimates 96 2143-RPT-0014 ii 14.1 Geometric Interpretation 96 14.2 Exploratory Data Analysis 98 14.3 Variography and Estimation 100 14.4 Resource Classification 103 14.5 Interpretation and Conclusions 107 15 Mineral Reserve Estimates 107 16 Mining Methods 111 17 Recovery Methods 115 17.1 Process Plant 115 17.4 Process Description 127 18 Project Infrastructure 139 18.1 Introduction 139 18.2 Scope and Status of the Infrastructure Study 140 18.3 Transport Infrastructure 142 18.4 Water Supply 147 18.5 Power Distribution 150 18.6 General Service Buildings and Ancillary Facilities 152 18.7 Communications & IT Summary 160 18.8 Port 162 18.9 Residue Storage Facility 168 19 Market Studies and Contracts 183 19.1 Summary Outlook for nickel 183 19.2 Recent Nickel Market Situation 183 19.3 Outlook for nickel demand 184 19.4 Nickel Supply 188 19.5 Market for Mixed Hydroxide Product 192 20 Environmental 194 20.1 Introduction 194 20.2 Environmental 197 20.3 Community and Social 318 20.4 Permitting 415 21 Capital and Operating Costs 418 21.1 Scope of Estimate 418 21.2 Accuracy of Estimate 418 21.3 Summary of Capital Cost Estimate 418 22 Economic Analysis 424 22.1 Introduction 424 22.2 Economic Model Input Parameters 424 22.3 Capital Costs 425 22.4 Operating Costs 427 22.5 Life of Mine Project Financials 428 22.6 Sensitivity Analysis 431 23 Adjacent Properties (MRL) 432 24 Other Relevant Data and Information 432 24.1 Mine Operating Costs 432 24.2 Mine Capital Costs 441 25 Interpretations and Conclusions 443 25.1 Geological Setting and Mineralisation 443 25.2 Drilling 444 25.3 Sample Preparation, Analyses and Security 444 25.4 Data Verification 444 2143-RPT-0014 iii 25.5 Metallurgy 444 26 Recommendations 445 26.1 Geological Setting and Mineralisation 445 26.2 Drilling 445 26.3 Sample Preparation, Analyses and Security 445 26.4 Data Verification 445 26.5 Mining 445 26.6 Metallurgy 446 26.7 Process Plant Site Location 446 27 References 447 2143-RPT-0014 iv List of Tables Table 1 – Agata Mineral Resource Estimates 20 September 2011, includes Bolobolo-Karihatag, Agata South ............................................................................................................................. 4 Table 2 – Mineral Reserves ........................................................................................................................ 5 Table 3 - Plant Feed Rates .......................................................................................................................... 6 Table 4 - Ore Feed (Year 1-3) Slurry Settling Results .............................................................................. 8 Table 5 - HPAL Test Results at 255°C (Limonite/Low Mg Saprolite Blend at 6% Mg) .......................... 8 Table 6 – Confirmatory Atmospheric Leaching Test Results ................................................................. 8 Table 7 – Saprolite Neutralisation Test Results ....................................................................................... 9 Table 8 - Settling Tests on CCD Feed Slurry at SGS Perth ..................................................................... 9 Table 9 - Settling Tests on CCD Feed Slurry at SGS Lakefield .............................................................. 9 Table 10 - Limestone Head Assays ......................................................................................................... 11 Table 11 - Limestone Calcination Results .............................................................................................. 11 Table 12 – Comminution Indices ............................................................................................................. 12 Table 13 – Limonite Scrubbing – Elemental Recoveries, 4 Minutes Scrubbing (LIM1) ..................... 12 Table 14 – Limonite Scrubbing – Elemental Recoveries, 8 Minutes Scrubbing (LIM2) ..................... 12 Table 15 - Summary of Financial Analysis Results ............................................................................... 15 Table 16 - Capital Cost Estimate for the Agata Nickel Project PFS ..................................................... 16 Table 17 - Operating Cost Estimate ......................................................................................................... 17 Table 18 - Risk Assessment and Mitigation ........................................................................................... 18 Table 19 - Climate Averages and Extremes 1961 - 2000 ....................................................................... 26 Table 20 - Ni Standards used at ANLP and frequency .......................................................................... 40 Table 21 - Variance of Original and Internal Laboratory Duplicate Analyses ..................................... 41 Table 22 - Variance of Ni Standard and Laboratory Assays ................................................................. 42 Table 23 - Variance of Field Duplicate and Original Assays ................................................................. 43 Table 24 - Variance of Coarse Reject and Original Assays .................................................................. 43 Table 25 - Variance of Pulp Duplicate and Original Assays ................................................................. 45 Table 26 - Variance of Pulp Duplicate and Interlab Assays .................................................................. 46 Table 27 - Results of Independent Check on Drill Core Assays .......................................................... 47 Table 28 - Summary of Bulk Density Measurements ............................................................................. 49 Table 29 - Source of Metallurgical Samples Tested at SGS Perth ....................................................... 50 Table 30 - Head Analyses of Metallurgical Composites Tested at SGS Perth .................................... 52 Table 31 - Scrubbing Test Results at SGS Perth ................................................................................... 53 Table 32 - Ore Slurry Settling at SGS Perth - Key Parameters ............................................................. 53 Table 33 - HPAL Test Results on L/T Blend Samples at SGS Perth .................................................... 54 Table 34 - AL Tests on Saprolite Samples at SGS Perth ....................................................................... 55 Table 35 - Saprolite Neutralisation Testing at SGS Perth ..................................................................... 57 Table 36 - Settling Tests on Saprolite Neutralisation Slurry at SGS Perth ......................................... 58 2143-RPT-0014 v Table 37 - Make-up of Limonite Ore Composites ................................................................................... 61 Table 38 - Make-up of Saprolite Ore Composites .................................................................................. 62 Table 39 - Head Analyses of Metallurgical Composites Prepared at SGS Lakefield ......................... 63 Table 40 - Year 1-3 Ore Feed Slurry Settling Results ............................................................................ 64