ENVIRONMENT IMPACT ASSESSMENT MINING CONCESSION 5969 PROJECT “EL PESCADO” CONTENTS 2 PROJECT DESCRIPTION. .................................................................................................................. 7 2.1 GEOGRAPHICAL LOCALIZATION OF THE PROJECT .............................................................................. 7 2.1.1 PROJECT LOCATION ........................................................................................................................ 8 2.2 EXPLORATION RESULTS ...................................................................................................................... 9 2.2.1 REGIONAL ASPECTS ........................................................................................................................ 9 2.2.1.1 METAMORPHIC ROCKS ..........................................................................................................................9 2.2.1.1.1 Gneiss feldspathic quartz ................................................................................................................10 2.2.1.1.2 Quartz-Sericitic Skids (Pzes) ............................................................................................................11 2.2.1.1.3 Quartzite (Pzq) ................................................................................................................................11 2.2.1.2 IGNEOUS ROCKS ...................................................................................................................................11 2.2.1.2.1 Diorite of Segovia (Jds) ....................................................................................................................12 2.2.1.2.2 Segovia vulcanite (Kivs) ...................................................................................................................13 2.2.2 SEDIMENTARY ROCKS .................................................................................................................. 13 2.2.2.1 SEDIMENTITes EAST OF SEGOVIA (KIVS)..............................................................................................13 2.2.2.2 QUATERNARY DEPOSITS ......................................................................................................................14 2.2.2.3 REGIONAL STRUCTURAL GEOLOGY......................................................................................................14 2.2.2.4 REGIONAL GEOMORPHOLOGY ............................................................................................................16 2.2.3 GEOLOGY OF THE DEPOSIT .......................................................................................................... 16 2.2.3.1 LOCAL GEOLOGY ..................................................................................................................................16 2.2.3.1.1 Granodiorite ....................................................................................................................................16 2.2.3.1.2 Diorite..............................................................................................................................................16 2.2.3.1.3 Diabase ............................................................................................................................................17 2.2.3.2 ALLUVIAL DEPOSITS .............................................................................................................................18 2.2.3.3 LOCAL STRUCTURAL GEOLOGY ............................................................................................................24 2.2.3.4 PHYSICAL AND CHEMICAL CHARACTERISTICS OF THE MINERALS TO BE EXPLOITED ..........................25 2.2.3.4.1 Analysis of particle size ...................................................................................................................26 2.2.3.4.2 Cyanidation test ..............................................................................................................................27 2.2.3.4.3 Flotation test ...................................................................................................................................29 2.2.3.4.4 Bond index ......................................................................................................................................30 2.2.3.4.5 Geochemical Analysis......................................................................................................................31 2.2.3.4.6 Mineralogic study............................................................................................................................32 2.2.3.4.6.1 Excavation of trenches and mine shaft .......................................................................................35 2.2.3.4.7 Geophysics ......................................................................................................................................37 Characteristics of rocks ...................................................................................................................41 2.2.3.4.9 Calculation of mining resources ......................................................................................................43 2.3 DELIMITATION AND LOCATION OF AREAS TO BE EXPLOITED AND MINING OPERATION AREAS ...... 57 2.3.1 DESCRIPTION AND LOCATION OF MINING FACILITIES AND WORKS, MINERAL DEPOSITS, PROCESSING AND TRANSPORTATION. ...................................................................................................... 57 2.3.1.1 CURRENT FACILITIES ............................................................................................................................59 2.3.1.2 PLANNED INSTALLATIONS ....................................................................................................................59 2.3.1.2.1 Profit plant ......................................................................................................................................61 2.3.1.2.2 Mechanical and automotive workshop. .........................................................................................62 2.3.1.2.3 Heliport ...........................................................................................................................................64 2.3.1.2.4 Powder keg......................................................................................................................................65 2.3.1.2.5 Dumping sites ..................................................................................................................................66 2.3.1.2.6 Plant cover storage .........................................................................................................................66 2.3.1.2.7 Solid weir .........................................................................................................................................67 2. Project Description Page. 1 ENVIRONMENT IMPACT ASSESSMENT MINING CONCESSION 5969 PROJECT “EL PESCADO” 2.3.6 PROFIT AND MINERAL PROCESSING ............................................................................................ 68 2.3.6.1 SCOPE OF EXPLANATION .....................................................................................................................68 2.3.6.2 MILLING, METALLURGY AND MINERAL PROCESSING OPERATIONS ...................................................69 2.3.6.3 SHREDDING ..........................................................................................................................................71 2.3.6.4 GRINDING .............................................................................................................................................73 2.3.6.5 GRAVIMETRIC CONCENTRATION. ........................................................................................................74 2.3.6.6 FLOTATION ...........................................................................................................................................75 2.3.6.7 CYANIDATION.......................................................................................................................................76 2.3.6.8 MERRIL CROWE ....................................................................................................................................77 2.3.6.9 LABORATORY........................................................................................................................................78 2.3.6.10 TAILS GENERATED IN THE PROFIT PROCESS ........................................................................................80 2.4 PROJECT CHARACTERISTICS .............................................................................................................. 81 2.4.1 DESIGN AND MINING PLAN ......................................................................................................... 81 2.4.1.1 OBJECTIVES OF MINING PLANNING .....................................................................................................81 2.4.1.2 GENERAL MINING PLAN. ......................................................................................................................81 2.4.1.3 ALTERNATIVE METHODS OF EXPLOITATION........................................................................................83 2.4.1.3.1 Underground ...................................................................................................................................83 2.4.1.3.2 Design of the selected method