Lumina Copper Corp Taca Taca Copper/ Gold Molybdenum Project
Total Page：16
File Type：pdf, Size：1020Kb
2317-RPT-003 Revision Number 0 Lumina Copper Corp Taca Taca Copper/ Gold Molybdenum Project Preliminary Economic Assessment Report Date of Report: May 24, 2013 Effective Date: April 9, 2013 QUALIFIED PERSONS: Scott C. Elfen, P. E. Robert Sim, P. Geo. Bruce M. Davis, FAusIMM William L. Rose, P. E. Kevin Scott, P. Eng. (Principal) Prepared by: Prepared for: 855 Homer Street Vancouver, BC V6B 2W2 Canada Table of Contents 1 Summary 1 1.1 Introduction 1 1.2 Project Location 2 1.3 Property Ownership 2 1.4 Property Description 4 1.5 Geology and Mineralization 5 1.6 Drilling 5 1.7 Mineral Resource 5 1.8 Mining 6 1.9 Mineral Reserve Estimate 8 1.10 Metallurgical Testing 8 1.11 Process Design and Recovery 8 1.12 Execution Plan and Schedule 9 1.13 Capital Cost 9 1.14 Operating Cost 10 1.15 Marketing Studies 11 1.16 Economic Evaluation 12 1.17 Interpretations and Conclusions 15 1.18 Recommendations 16 1.19 Cautionary Note Regarding Forward-Looking Information and Statements 17 2 Introduction 21 2.1 Purpose of the Technical Report 21 2.2 Sources of Information 21 2.3 Personal Inspection of the Taca Taca Project 22 2.4 Currency Assumptions 22 3 Reliance on Other Experts 23 4 Property Description and Location 24 4.1 Property Location 24 4.2 Property Ownership and Agreements 24 4.3 Environmental Liabilities and Permitting 29 4.4 Other Significant Factors and Risks Affecting Access or Title 29 5 Accessibility, Climate, Local Resources, Infrastructure, & Physiography 30 5.1 Location and Access 30 5.2 Physiography and Vegetation 30 5.3 Climate and Topography 30 5.4 Local Resources 30 5.5 Regional Infrastructure 31 6 History 32 7 Geological Setting and Mineralization 34 7.1 Regional Geology 34 7.2 Local and Property Geology 36 7.3 Mineralization 38 7.4 Structure 44 8 Deposit Types 46 9 Exploration 47 i 9.1 Historic Exploration Programs (Non-Drilling) 47 9.2 Exploration by Lumina Copper (2010 - 2012) 47 10 Drilling 49 10.1 Drilling 49 10.2 Historic Drilling 50 10.3 Drilling by Lumina Copper (2010-2012) 51 11 Sample Preparation, Analyses, and Security 53 11.1 Historic Drilling and Sample Preparation 53 11.2 Lumina Copper Drilling (2010-2012) 56 12 Data Verification 65 12.1 Historic Drilling 65 12.2 Lumina Copper Drilling 65 12.3 Conclusions 66 13 Mineral Processing and Metallurgical Testing 67 13.1 General 67 13.2 Metallurgical Testing 67 13.3 Comminution Test Work 69 13.4 Flotation Test Work 70 13.5 Sedimentation and Filtration Test Work 82 14 Mineral Resource Estimates 84 14.1 Introduction 84 14.2 Geologic Model, Domains, and Coding 84 14.3 Available Data 86 14.4 Compositing 90 14.5 Exploratory Data Analysis 91 14.6 Bulk Density Data 94 14.7 Evaluation of Outlier Grades 95 14.8 Variography 96 14.9 Model Setup and Limits 97 14.10 Interpolation Parameters 98 14.11 Validation 99 14.12 Resource Classification 105 14.13 Mineral Resources 106 14.14 Comparison with Previous Resource Estimate 111 14.15 Discussion of Factors Materially Affecting Mineral Resources 114 15 Mineral Reserve Estimates 115 16 Mining Methods 116 16.1 Economic Pit Limit Evaluations 116 16.2 Mining Phase/Pit Designs 118 16.3 Mine Production Schedule 120 16.4 Waste Rock Storage and Stockpiling 124 16.5 Mine Equipment 125 16.6 Mine Workforce 128 17 Recovery Methods 129 17.1 Introduction 129 17.2 Process Design Basis and Design Criteria Summary 129 17.3 Flow Sheet Development and Equipment Sizing 130 17.4 Comminution Circuit Design 133 ii 17.5 Bulk Copper-Molybdenum Flotation Circuit Design 134 17.6 Copper-Molybdenum Separation and Molybdenum Cleaning 135 17.7 Copper Concentrate Thickening and Filtration 136 17.8 Molybdenum Concentrate Thickening and Filtration 136 17.9 Concentrate Rail Load-Out Facility 136 17.10 Tailings Processing 136 17.11 Brine, Desalinated, and Process Water 137 17.12 Reagents 137 17.13 Plant Layout & Description 137 18 Project Infrastructure 139 18.2 Roads 139 18.3 Power Supply 144 18.4 Site Electrical Power Distribution 146 18.5 Tailings Storage Facility 146 18.6 Reclaim Water System 149 18.7 Hydrogeology and Raw Water Supply Sources 149 18.8 Process Water Supply 151 18.9 Potable Water 154 18.10 Logistics and Transportation 154 18.11 Concentrate Storage, Handling, and Transport 159 18.12 Ancillary Site Buildings and Facilities 165 18.13 Permanent Camp 165 19 Market Studies and Contracts 167 19.1 Introduction 167 19.2 Supply and Demand 167 19.3 Smelter Capacities and Utilization 167 19.4 Ocean Freight 168 19.5 Future Metals Pricing 168 20 Environmental Studies, Permitting, and Social or Community Impact 169 20.1 Environmental Baseline 169 20.2 Permitting 170 20.3 Conceptual Closure 170 20.4 Socioeconomic Conditions 173 21 Capital and Operating Costs 177 21.1 Capital Cost Estimate 177 21.2 Estimate Exclusions 178 21.3 Basis of Estimate – Mining 178 21.4 Basis of Estimate – Process and Infrastructure Direct Costs 178 21.5 Basis of Estimate – Indirect Costs 179 21.6 Owner’s Costs 179 21.7 Other Costs – Freight, Duties & Taxes 180 21.8 Contingency 180 21.9 Accuracy 181 21.10 Initial Capital 181 21.11 Operating Costs 182 21.12 Basis of Estimate 183 21.13 Mining Operating Costs 183 21.14 Process Operating Costs 184 21.15 Infrastructure Maintenance 185 21.16 Railroad Operation 186 iii 21.17 General and Administrative 186 21.18 Mine Reclamation 187 21.19 C-1 Cash Costs (net of credits) 187 22 Economic Analysis 189 22.1 General Criteria 189 22.2 Production Summary 190 22.3 Gross Income from Mining 191 22.4 Net Smelter Revenue (NSR) Calculation 192 22.5 Royalty Calculation 193 22.6 Operating Margin 193 22.7 Retention Taxes 193 22.8 Depreciation and Income Tax 193 22.9 Initial Capital Costs 195 22.10 Sustaining Capital Costs 195 22.11 Working Capital 197 22.12 Base Case Analysis 198 22.13 Base Case Sensitivity Analysis 198 22.14 Economic Model 201 23 Adjacent Properties 204 24 Other Relevant Data and Information 205 25 Interpretations and Conclusions 206 25.1 Interpretations and Conclusions 206 25.2 Risks and Opportunities 207 26 Recommendations 210 27 References 212 28 Date and Signature Page 215 iv List of Figures Figure 1-1: Property Location Map (Afrainlle, June 2012) ........................................................................... 2 Figure 1-2: Taca Taca Property ....................................................................................................................... 4 Figure 1-3: IRR Sensitivity Analysis – Metal Prices .................................................................................... 14 Figure 1-4: NPV Sensitivity Analysis – Metal Prices .................................................................................. 14 Figure 4-1: Property Location Map (Afrainlle, June 2012) ......................................................................... 24 Figure 4-2: Claim Map .................................................................................................................................... 27 Figure 7-1: Regional Geology (Almandoz, 2008) ........................................................................................ 35 Figure 7-2: Surface Geology of the Taca Taca Project (Almandoz, 2008) ................................................ 36 Figure 7-3: Paragenesis of Mineralization at Taca Taca (Almandoz, 2008) ............................................. 39 Figure 7-4: Extent of Hypogene Sulphide Mineralization (Wells, 2012) .................................................... 40 Figure 7-5: Vertical East-West Oriented Cross Section 728 3950 N (Wells, 2012) .................................. 41 Figure 7-6: Extent of Supergene Enrichment Zone (Wells, 2012) ............................................................. 42 Figure 7-7: Extent of Gold in Leach Cap (Wells, 2012) ............................................................................... 43 Figure 7-8: Hematite Copper-Gold Veins (Wells, 2012) .............................................................................. 44 Figure 9-1: Titan 24 IP and MT Anomalies (Sim, 2011) ............................................................................... 48 Figure 10-1: Drill Collar Plan Map – Taca Taca Project (Wells, 2012) ....................................................... 50 Figure 11-1: ALS Chemex OREAS 50C SRM Copper Control Chart .......................................................... 59 Figure 11-2: ALS Chemex OREAS 50C SRM Gold Control Chart ............................................................. 59 Figure 11-3: ALS Chemex OREAS 50C SRM Molybdenum Control Chart ................................................ 60 Figure 11-4: ALS Chemex Coarse Blank Copper Control Chart ............................................................... 60 Figure 11-5: ALS Chemex Copper Coarse Duplicate Comparisons ......................................................... 61 Figure 11-6: Alex Stewart OREAS 503 SRM Copper Control Chart .......................................................... 62 Figure 11-7: Alex Stewart OREAS 503 SRM Gold Control Chart ............................................................... 62 Figure 11-8: Alex Stewart OREAS 503 SRM Molybdenum Control Chart ................................................. 63 Figure 11-9: Alex Stewart Coarse Blank Copper Control Chart ................................................................ 63 Figure 11-10: Alex Stewart Copper Coarse Duplicate Comparisons ........................................................ 64 Figure 13-1: Copper Recovery vs Copper Feed Grade, Roughers – Supergene (Plenge, 2012) ........... 73 Figure 13-2: Molybdenum Recovery vs Molybdenum