mining

services
an overview of SRK's services to the global mining industry

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 Mining Services
Introduction 4
Exploration Services 6
Resource Modelling and Estimation 8
Open Pit Mining 10
Underground Mining 12
Feasibility Studies 14
Rock Engineering and Slope Stability 16
Tailings and Mine Waste Engineering 18
Heap Leach Engineering 20
Environmental and Social Services 22
Environmental Geochemistry and ARD 24
Mine Reclamation and Closure 26
Risk Management 28
Mine Water Management 30
Metallurgy and Mineral Processing 32
Geotechnics for Infrastructure 34
Independent Project Review 36
Research and Development 38
SRK Offices 39

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A world of experience, technical knowledge, and understanding.
That’s what SRK brings to your project. Profitable mining demands
an independent, experienced, long-term perspective that
gives you real clarity. Whether it’s advice on project feasibility,
property acquisitions/disposals, financing, geotechnical stability,
sustainability or mine closure, we have an extensive breadth of
knowledge and depth of experience to ensure you get the right
advice, where and when you need it most.

mining

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Multi-specialist Global expertise, Solid track record - Clients large & small
services through local experience most countries, most seek our advice
project life cycle Established in 1974, the SRK group commodities Among our multiple clients are most
employs more than 1400 staff in of the world’s major, intermediate
SRK Consulting is an independent, We have successfully completed a wide
over 45 offices on six continents. and junior mining and exploration
international consulting group range of projects, large and small, in
Over 150 internationally recognised companies. We also work with banks,
providing focused advice and solutions most areas of the world and across the
associates complement our team. EPCM and construction firms and
for your mining and exploration full spectrum of mineral commodities.
When appropriate, we partner with public sector entities. We take pride
challenges. SRK's services cover The industry background of many of
other consultants, EPCM companies in our independent opinions based on
the full life cycle of mineral industry our staff ensures that advice is not
and research organisations. We draw honest and appropriate analysis. We
projects. Our team includes leading only technically sound but thoroughly
on our global industry specialists to do not own equity in any projects or
experts in services ranging from practical. Our working relationships
match your project challenges with companies.
exploration through resource with the international banking/
appropriate expertise and experience.
estimation, mining, geotechnics, financing community and regulators
hydrology, tailings, processing and reduce your risks with project financing
valuations to environmental planning, and permitting.
remediation and mine closure.

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Exploration Services
Finding the mines of tomorrow

Approach Successful exploration relies on efficiently managing exploration programs based on effective
application and interpretation of geology, geochemistry and geophysics to generate and test exploration
targets. Our core exploration services include exploration and drill planning, exploration management,
QA/QC assessments and planning, audits on drilling, economic assessments, and project evaluations.

In addition to these core offerings, our specialised services include advanced structural interpretation
skills, the ability to connect the minerals systems to the structural setting, systematic orebody targeting,
and 3D modelling. We specialise in the development of process-driven, conceptual models to identify and
improve the understanding of your mineral targets. Our in-house consultants have expert knowledge of the
processes of ore body formation and distribution within a wide range of geological and tectonic settings.

In many geological terrains around the world, exploration is becoming much more focused on
discovering deeper or “blind” orebodies, as the scope for targeting easily accessible areas is becoming
more limited. In highly mineralised terrains, exploration for these orebodies is a major opportunity.
Delivering exploration success in deep targeting requires a much more reliable understanding of the
geometry of structures in the third dimension. This need is driving development and application of 3D
modelling and 3D visualisation technologies (for example, GoCAD, Geomodeller and Leapfrog software),
ensuring that mineralisation targets are defined by multiple exploration and mining parameters, and are
directly focused on adding value to the project.

These new technologies are essential tools for effective 3D exploration. However, their use is not
yet widespread because of the perceived cost and time required to develop expertise. We use these
and other cutting-edge 3D geological and geophysical modelling methods, and are also undertaking
research and development of our own. This gives us a distinct advantage in providing the best solutions
for your projects.

Services • Exploration project management • Advanced geophysical and geological

• Exploration and drill planning, drill spacing interpretation of remote sensing data
studies, sampling protocol definition • Deposit-scale structural evaluation to define
• Property and project evaluations, assessments geotechnical domains and hydrogeological
and audits controls

• Regional tectonic and metallogenic syntheses • Exploration risk evaluations

to provide context for province selection, • Geophysical modelling/enhancement
property acquisition and project generation, processing/data visualisation
including ranking of exploration targets for • Tailored, onsite structural geology training
specific deposit styles or commodities courses with a focus on practical tools for
• Detailed structural analysis, from basin- to exploration and mine geologists
ore deposit-scale, emphasising 4D (3D+time)
controls on mineralisation

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 Technical review of a coking coal project in Manchuria, NE China, conducted for Celadon Mining

Giralia Resources Vale Inco PT. Merge Energy Sources Thani Dubai Mining Limited
Development
Project: Earaheedy Basin iron Project: Footwall PGE exploration, Project: Medden gold, Republic of
formation targeting, Western Australia. Sudbury Basin, Ontario, Canada. Project: Coal exploration Yemen.
management, Barito Basin, Kalimantan,
Scope: The project area is part of a Scope: Footwall PGE mineralisation Scope: SRK conducted a technical
Indonesia.
major undeveloped Mesoproterozoic in the Sudbury Basin is often hosted in audit of previous exploration and
Fe province in Western Australia. SRK Sudbury breccia zones and copper- Scope: Based on successful due recommended a comprehensive set
was asked to interpret the structural rich chalcopyrite veins. We provided diligence work on the Rantau Nangka of standardised procedures for core
setting, structural history and generate structural assistance and training coal project in southern Kalimantan, logging and sampling and the creation
exploration targets. to Vale Inco personnel on multiple SRK provided JORC- compliant of an electronic database. In addition
projects, building the team’s strengths exploration management for the client. SRK acted as technical consultants
Outcome: We identified the major
in structural geology at the same time ensuring that the exploration met
factors that control Fe-enrichment in Outcome: SRK refined coal exploration
as helping to define potential PGE international best practice standards.
the Basin. These factors were mapped targets within the large tenement area
deposits and new targets.
by combining the interpretation of primarily based on structural analysis Outcome: SRK produced a Resource
geophysical data, geological mapping, Outcome: Using Vale Inco personnel’s of magnificent highwall exposures in a Statement based on all exploration
drilling results. After assessing knowledge of Ni - Cu - PGE systems and surrounding coal mine. Moreover, SRK to date, investigated a number of
topographic and structural controls, our knowledge of structural controls inspected the local coal laboratory, and production scenarios and presented a
and direct magnetic anomalism, a the client was able to define new updated Standard Operating Procedures business case study on this deposit.
number of exploration targets, of both resources on multiple projects. for the Rantau Nangka coal project We will also be involved in an ongoing
hypogene and supergene enrichment based on site observations and findings. resource delineation drilling program.
styles, were located.

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Resource Modelling and Estimation
Unlocking greater value with experience and innovation

Approach Our geologists have extensive experience in exploration, database management, resource estimation,
grade control and conditional simulation. We can take your project from grassroots exploration
through the feasibility study stage and into production.

Our approach to resource estimation combines our strengths in structural geology and ore deposit
geology, our understanding of geostatistical theory and our extensive resource estimation and mining
operational experience. While each resource estimate is tailored to each specific project, our general
procedures typically include:

• An assessment of the quantity and quality of the data available including database
management and verification
• The creation of 2D and/or 3D geological and mineralisation models for the deposit
• Statistical and geostatistical analyses of the data and the determination of the most
appropriate grade and density interpolation methods
• Classification and reporting according to accepted internationally recognised codes

We have a large skills base and extensive experience in the use of all the major geological modelling
and geostatistical packages. Notably, the original Gemcom software was developed within SRK
while more recently the Leapfrog software has been developed under a joint venture agreement with
Applied Research Associates of New Zealand. This gives SRK the flexibility to continue the use of the
software that you are currently using or select the most appropriate software for new projects.

We have experience in developing and reviewing geological models and resource estimates for all
commodities and deposit types. We also have a large base of competent/qualified persons as defined
by the various internationally accepted resource reporting codes.

Services • Evaluations of exploration properties Sino Gold

• Reviews of exploration sampling results and QAQC Project: Jinfeng, China.

procedures Scope: Resource estimation for a
• Optimisation of drillhole targeting for resource structurally controlled gold project
definition requiring selective mining via open-pit
and underground methods.
• Exploration and database management
Outcome: Uniform conditioning was
• Creation of 2D and 3D geological, structural and applied to the open-pit material,
mineralisation models allowing an estimation of the
distribution of mineable economic
• Statistical and geostatistical analyses
grade material within the larger
• Resource estimation, classification and reporting resource blocks. A conditional
for all stages of projects from scoping studies simulation approach was utilised for the
underground mining, stope size blocks
through to feasibility studies and operating mines
were directly estimated and the levels
• Due diligence reviews of geological interpretations of risk in each evaluated.
and resource estimates
• Metal accounting and production reconciliations

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 Integrated Buckingham geological model in Minex

Various Hampton Mining Rainy River Resources African Minerals

Project: Resource estimation for nickel Project: Medium-sized copper Project: Rainy River gold project, Project: Tonkolili, Sierra Leone.
laterites. porphyries and copper-gold veins, Chile Ontario, Canada.
Scope: Review the extensive data
and southern Peru.
Scope: Nickel laterites, in particular the Scope: Produce a resource update to collected during a two-year drilling
saprolites, present difficult challenges Scope: Early to advanced stage copper address deficiencies in an program, assist in the detailed logging
for resource estimation. The geometry projects at resource definition drilling earlier study. of the overlying hematite cover and
is complex due to the presence of stage, to mining scoping study to early underlying magnetite itabirite, produce
Outcome: Detailed structural analyses
low-grade or waste boulders and the pre-feasibility. 3D geological models, and prepare the
led to the construction of unique 3D
bedrock contact is highly irregular at a project’s first resource estimate (which
Outcome: Provided the client with geological/geostatistical domains which
scale which is much smaller than the has since been updated).
tailored integrated services, beginning were further refined using Leapfrog
typical drilling grid.
with early exploration resource software. Resources were reported at Outcome: The most recent
Outcome: SRK introduced an innovative definition, and including geotechnical, multiple cut-offs to reflect `reasonable resource estimate produced by SRK
estimation method based on uniform environmental and mining aspects of prospects of economic extraction’. The exceeds 5Bt at a mean grade of 30%
conditioning, extended to several ongoing engineering and feasibility resulting resource estimate will allow total iron, making it one of the largest
variables, aimed at reproducing the real studies. the client to make technically-sound magnetite iron ore projects in the world.
degree of mining selectivity likely to be strategic decisions on the future of the
achieved in practice. resource.

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Open Pit Mining
Digging deeper for value

Approach SRK professionals have strong operational and technical backgrounds and have gained substantial
experience in mines across multiple commodities, methods, continents and countries. This ensures
that our solutions and advice are not only practical and workable, but take account of appropriate
geotechnical, hydrogeological, economic and environmental considerations.

SRK's services cover scoping, pre- feasibility and feasibility studies and economic evaluations,
detailed mine design and layouts, production scheduling and equipment selection, operating cost
estimation and capital expenditure estimation. We also have key people pro- actively reviewing
improved mining methods outside traditional approaches.

We have in-house skills with all major software design, optimisation and scheduling packages.
We have expert users for a range of software packages including Whittle, Gemcom, Vulcan,
MineSight, Datamine, Surpac, Talpac, Xpac and Minemax.

We have developed an innovative and rigorous mine planning methodology that takes a mineral
resource through to a comprehensive technical report inclusive of the life-of-mine plan and techno-
economic model. The methodology first focuses on pit optimisation to determine the cut-off strategy,
economic mining depth, size and scale of operation. We are dedicated to identifying the best option
for project development and producing client-focused solutions to technical challenges.

With the growing need to bring projects into production more quickly and on budget, we can
accelerate the process for mining companies by supplying consultants to supplement the client’s
own technical resources to achieve the desired outcomes within the project timeframe. Our
personnel ensure appropriate decisions to guide project development are made at the earliest
opportunity, and are committed to reviewing what aspects of project advancement can be done in
parallel to minimise the risk of rework.

Services • The full range of studies from scoping European bulk commodity
to feasibility producer

• Mine planning reviews and technical audits Project: Located in Finland.

• Development and implementation of optimal Scope: Feasibility studies assessing

mining strategies the viability of in - pit crushing and
conveying (IPCC) for a long life - of -
• Operational assistance, reviews and mine operation.
improvements
Outcome: A conceptual study
• Financial evaluations considered the benefits and risks;
operating and capital costs were
• Risk analysis
estimated and reported. This
• Project reviews determined the IPC locations and
conveying options potentially adding
• Due diligence significant project value. Further
• Competent person reports studies considered modifications to the
mine plan to provide an updated mine
• Independent expert reports production schedule, and staged and
• Stock market listing reports final mine designs to update both cost
and revenue streams.

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 Norilsk’s Thunderbox Pit (previously LionOre), Western Australia

Norsemont Mining Inc Areva Projeto Pedra de Ferro (PdF) Luna Gold Corporation

Project: Constancia, Peru. Project: Trekkopje, desert region of Project: Caetité, Bahia State, Brazil. Project: Aurizona, Maranhão State,
Western Namibia. Northern Brazil.
Scope: Scoping study which Scope: Feasibility study of an iron
involved mineral resource evaluation, Scope: Definitive feasibility study for ore deposit done in conjunction with Scope: Feasibility study (compliant
geotechnical, open pit mining, an open pit uranium mine and heap BAMIN, Construções e Comércio with Canadian NI 43 -101 for an open
plant, tailings, environmental and leaching operations (36Mtpa ore). Camargo Corrêa S.A. and SRK, with pit gold mine and milling operations
infrastructure. contributions by other consultants. (1.5Mtpa ore).
Outcome: Mine planning included
Outcome: Two production rates, 30 analysis for two potential ore types Outcome: SRK assisted BAMIN Outcome: Mine planning optimisation
and 55ktpd, were evaluated for copper with variable processing costs and a on the pre-feasibility study (PFS), studies examined different operating
and molybdenum processing. The deleterious material penalty formula. including open pit optimisation, costs and processing assumptions,
study included open pit optimisation Project optimisation focused on analysing many pit planning scenarios and the optimum mine production
and pit design, mining equipment strategic development of the open and selection of a base case. After the schedule to extract mine reserves was
selection, waste dump location pit resources involving analysis of delivery of the PFS, BAMIN requested developed. The ultimate pit design
analysis, operating and capital cost production rates, material handling SRK develop the geology and incorporated more than 10 design
estimation, metallurgical parameters options, permanent pad/on-off pad mining components of the definitive phases. The report was compiled
review, process and plant layout alternatives, and project layouts. feasibility study. within a period of weeks, filed with
design based on sulphide flotation Project planning assisted the client the regulatory authorities and used by
process, water supply, power supply, to negotiate sale of the junior mining the client to solicit project financing.
access roads, transport alternatives company to a major company in the
and economic evaluation. uranium industry.

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Underground Mining
Ensuring technical viability and economic realism

Approach We have years of first-hand underground mining experience in most countries and across
multiple commodities using all common mining methods. As a global group, we have specialist
underground mining expertise to provide solutions for the unique features of each project.

Based on this extensive experience, we utilise an innovative and rigorous mining method
selection and planning methodology that maximises the economic benefit of the project. The
methodology first focuses on understanding the complete mining context or characteristics of the
deposit. This is the fundamental information required to select the appropriate mining method and
establish a robust mine plan. The design of stoping blocks using the appropriate cut - off grades
and minimum mining widths is followed by optimised production and development scheduling. All
mine design and schedule opportunities are left open until an optimised plan is defined.

We recognise the constant need to match changing commodity prices and capital costs with
appropriate responses from mining operations: reduction in operating and/or capital costs when
prices fall, and increasing capacity when prices rise. We also understand the socio-economic
implications of mining operations and address these in our strategic planning.

We are focused on producing mine designs and schedules that make the most effective use of
mine capital, in both short and longer term time frames. We can assist companies optimise the
transition from open pit to underground mining by offering a thorough analysis of the appropriate
cross -over depth as well as presenting highly mechanised and often automated solutions.

Whether optimising an existing operation or deciding how to extract a new deposit, SRK can help
ensure appropriate solutions are understood and implemented.

Services • Mining context definition • Drill and blast design

• Mining methods selection • Strategic planning: cut- off grade and
• Complete mine design production rate analysis

• Development and production scheduling • Fragmentation analysis and draw control for
including sequence optimisation caving operations

• Geotechnical characterisation • Backfill system design

• Ground support system design • Risk analysis and management

• Equipment selection • Due diligence

• Engineering studies (from scoping to • Ventilation system design

feasibility studies) • Operational review and assistance

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Since 1999 SRK has worked with BHP Billiton’s team at the Ekati™ Diamond Mine in Canada to select and design appropriate underground mining
methods for individual kimberlite pipes

Codelco Chile Ivanhoe Mines Ltd Minera Hierro Paposo Northgate Minerals Corp

Project: División El Teniente, Chile. Project: Oyu Tolgoi, Mongolia. Project: Iron ore deposit, Chile. Project: Young-Davidson, northern
Ontario, Canada.
Scope: Carry out a peer review Scope: Open pit and underground Scope: Complete a scoping study
to check compliance with Codelco’s studies and ongoing technical which considered open pit (at Scope: Preparation of a conceptual
standards for a pre-feasibility study, in assistance for development of the Oyu 100 ktpd) and underground (at 20, 25 underground mine design and
order to advance to a feasibility study Tolgoi deposit. and 30 ktpd) options for ore extraction. economic assessment. The client was
phase for the new mine level project. High-level consultant for hydrology assessing the possible reopening of a
Outcome: SRK was involved from
and hydrogeology issues, process historic gold mine that had two shafts
Outcome: Analysed the location of the early stages of the project in
and plant design, ore transportation, and extensive underground workings,
the new undercut level for the panel various aspects of the mining studies.
environmental, and port facilities and involved high tonnage bulk mining
caving exploitation at 140ktpd with the Utilising extensive knowledge of mass
review. employing open stoping.
possibility to expand to 180ktpd. mining technology, SRK assisted the
client to make the critical decision Outcome: Technical and economic Outcome: Completed conceptual
in terms of mining approach and evaluation was carried out to define mine design and indicative economic
selection of design parameters. SRK the best mining extraction method. assessment, which justified additional
also helped to evaluate trade-off Underground option was selected due work to advance the project. After
studies between mining methods and to limited time for ore production. Dry further studies and investigation,
has been retained to provide technical magnetic concentration was selected Northgate has completed a pre-
support for one of the largest block for the ore process. Further work feasibility study and has started a full
caving projects currently being recommended for the next stages. feasibility.
considered.

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Feasibility Studies
Eliminating fatal flaws; finalising and detailing options

Approach Our goal is to give you the highest confidence in the underlying value of your project, by providing
appropriate analyses and interpretations to support your key project decisions and development
strategies. We know what works, and which issues constitute opportunities and risks. Our focus is
on getting specific project concepts correct at the front end, where it matters.

Most of our team of experienced mining personnel have spent many years on operating mines
prior to consulting. This experience helps us offer practical expertise in a wide range of technical
services from geology and resources, to tailings and heap leach engineering, through permitting
and mine closure. This blend of know- how, together with the innovative application of advanced
mining technologies, has led to the wide acceptance of our engineering studies by the mining,
banking and investment community internationally.

Our teams are assembled to meet the unique needs of each project. We typically partner with
an EPCM company which provides process and infrastructure skills. Our strong relationships
with several of these companies enable us to form the partnership best suited to your project’s
challenges. SRK's services consist of the preparation of scoping studies, pre-feasibility and
feasibility studies for both underground and open pit projects.

Being part of the SRK worldwide group means we have access to many global specialists. We can
supplement and complement local expertise with the geological, geotechnical, hydrogeological,
mining, metallurgical, mine closure and environmental and social skills of consultants required to
match the specific challenges of your project.

Services • Scoping, pre-feasibility and feasibility studies Sinosteel Midwest

Corporation (SMC)
• Legal tenure assessment
Project: Weld Range, Western
• Mining method analysis and selection
Australia.
• Production capability assessment
Scope: Detailed pre-feasibility study
• Production and development scheduling (PFS) and bankable feasibility study
(BFS).
• Capital and operating cost estimation
Outcome: SRK’s contribution
• Equipment selection
to both studies included project
• Logistics capability assessments management, geology, resource
estimation, geotechnical engineering,
• Engineering and infrastructure design
geochemistry, groundwater, mine
• Estimation of manpower and management planning, mine closure and risk
requirements assessment. The mine planning
aspects of the studies included
• Implementation schedule pre-strip, production ramp-up, mining
• Financial analysis modelling and valuation fleet selection, blending and dilution
and ore loss aspects. Several option
studies evaluating adjacent deposits
were planned.

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Underground design for a copper mine in Mexico

Minera Tayahua A-Cap Resources Confidential Client Katanga Mining Limited

Project: Scoping study, Mexico. Project: Letlhakane uranium project, Project: Gold project, eastern Project: Kolwezi, Democratic
Botswana. Senegal. Republic of Congo.
Scope: Completion of a feasibility
study covering aspects such as Scope: Scoping study of the Scope: Pre-feasibility study (PFS) of a Scope: To complete a feasibility
mining, geology, estimation of Letlhakane project located in east- multiple deposit gold project involving study and independent technical
resources and geotechnical model, central Botswana. a team of SRK and subconsultants. report (ITR) on the material assets,
as well as environmental issues and Conduct the studies and oversee all which included four open pit and one
Outcome: The scope of work for the
hydrogeology in order to select the technical aspects of the project from underground copper/cobalt mine, two
study included mining optimisation,
mining method and underground exploration targeting through to mine existing processing plants and the
evaluating the mineralogy and
operation design (10,000tpd). closure. development of a new SX/EW refinery
metallurgy, evaluation of water supply
and plant.
Outcome: Selected an underground potential, the project environmental Outcome: Conducted a PFS within
mine design with a high productivity requirement, and then selecting a a very restrictive timeline. Managed Outcome: Both studies were
and extraction rate at a preliminary process option. Capital and operating data collection to get the most published in April 2009.
level for the demonstrated and cost estimates were developed for data possible from each part of the
potential geological resources of four scenarios. exploration program and kept multiple
the skarn-type deposit. The project’s elements of the project progressing
business potential was identified, at the same time. The solutions met
giving the client a strong technical the needs of the client and local
base on which to base future community.
decisions.

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Rock Engineering and Slope Stability
Ensuring a safe environment and profitable mining

Approach We have the knowledge and experience to work on a range of studies from scoping to feasibility
and operational improvement across all major resource types, for open pit and underground
operations, and for operational support. Our consultants, many with industry backgrounds, have
worked on deposits on all continents bringing a broad international perspective and experience to
your projects.

Our team of professionals includes individuals with highly developed numerical modelling
capabilities. We offer a mix of analytical and empirical analysis complemented by sound
operational experience to give solutions that are innovative and practical and design parameters
that are optimised for the conditions and mining strategy. We focus on the application and
interpretation of the analytical results by reducing the data to create geotechnical domain models,
representing sectors of the project that are expected to have similar geotechnical characteristics.
Our deliverables are useful geotechnical models and design parameters to ensure that you get
practical, focused results that add value to your projects.

We work hard to stay at the forefront of industry and technological developments: our experts
have participated on the Large Open Pit Study group coordinated by CSIRO, the Weak Rock Support
group coordinated by ITASCA and the industry sponsored Mass Mining Technology Study (formerly
International Caving Study). We use techniques such as Sirovision or 3DM Analyst and we are
developing data collection improvements for rock mass classification.

We are able to provide experts in the key areas to assist you to deliver successful projects and
are happy to work closely with your teams to strengthen in-house capacity by transferring our
understanding and skills.

Services • Training of client personnel Rio Tinto

• Geotechnical field investigation, mapping, logging, and Project: Simandou iron ore project,
databasing Guinea.

• Structural interpretation and analysis Scope: Geotechnical feasibility

studies, characterisation of itabirite
• Rock mass characterisation and domain modelling and waste, pit slope and waste dumps
• Mining method selection and excavation sequencing design, and operational criteria.

optimisation Outcome: Completed geotechnical,

• Assessment of impact if groundwater on open pit and logging and material testing programs
over a 14km strike of the proposed
underground design
mine. Site supervision and logging
• Mine infrastructure and capital development teams collected data for over one year.
excavation design Deeply weathered footwall influenced
stripping costs and waste volumes.
• Pit slope and underground stability analysis, 2D and 3D A robust geotechnical model, defined
modelling and design slope angles and a mining strategy
to reduce the geotechnical risk were
• Dilution, fragmentation and caving analysis
developed. The recommendations had
• Design of underground and slope support systems the potential to substantially reduce
stripping costs.
• Design, implementation and management of monitoring
systems 16
Well engineered slopes: Essential in major open pits

Alamos Gold Inc De Beers Canada Compania Minera Antamina Hindustan Zinc Limited
S.A.
Project: Mulatos Mine, Sonora Project: Victor Mine, Ontario, Project: Rajpura Dariba lead-zinc
Mexico. Canada. Project: Antamina Mine, Ancash, Peru. Mine, India.

Scope: Design level pit slope Scope: Geotechnical, structural and Scope: Conducted structural review of Scope: Underground rock mechanics
evaluations for four open pits at hydrogeological investigation and the polymetallic skarn deposit to define studies and numerical modelling
Mulatos. open pit slope design and technical key structures that may influence for development of mining method
assistance to the mine. rock stability. Included detailed field and sequencing for stoping in an
Outcome: SRK conducted a
mapping within the open pit, review of area which was prone to premature
probability-based evaluation that Outcome: SRK was part of a
exploration and production drillcore, hangingwall collapse due to the
allowed pit slopes to be modelled multidisciplinary technical team
3D modelling, and structural geology presence of a shear zone.
using probability distribution functions which assisted De Beers Canada
training for Antamina staff.
of rock strength test results. This to formulate and develop a mining Outcome: SRK identified longitudinal
Monte Carlo analysis approach approach from the advanced Outcome: Identification of 59 fault sub-level open stoping with cemented
prevented overly conservative pit exploration stage to feasibility study structures forming seven different fault backfill for the poor ground areas.
slope angle recommendations by for the first diamond mine in Eastern generations with associated kinematics Stable stope dimensions, stope
avoiding using simple average, or low- Canada. SRK’s specific responsibility and cross-cutting relationships. support, backfill requirements
end, rock strength values. The Estrella covered geotechnical investigation Created the mine’s first structural 3D and a sequence of mining that
pit is currently being excavated, of soils and rocks and ongoing model, which was integrated with minimised exposure of the poor rock
and performance indicates that geotechnical support to the mining ongoing slope stability engineering and hangingwall shear was developed.
the pit slope angle was effectively operation to assist De Beers achieve used to form a structural framework for The recommended mining method was
maximised. its goal of a safe and profitable prospective exploration areas. trialled with good stability results and
operation in James Bay Lowlands. reasonable productivity.
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Tailings and Mine Waste Engineering
Ensuring practical operations; successful closure

Approach We have been extensively involved in the permitting, design, operation and closure of mine
tailings, mine waste and associated water disposal/management facilities since 1974. Our
expertise includes a wide range of tailings and mine waste products and hands- on knowledge of
proven management techniques under a broad range of climatic conditions. We also have in-depth
experience in understanding the long- term evolution of solids and porewaters in tailings storage
facilities, allowing robust assessment of the adequacy of management and closure plans.

To achieve real cost benefits for tailings disposal, it is necessary to integrate the design of
the process plant with the tailings disposal system, while giving consideration to all design
aspects from site selection to impoundment closure. Our philosophy towards tailings and water
management is heavily based on our worldwide operational experience. We aim to provide
solutions that appropriately cater to each project’s needs, providing stable facilities that can be
practically operated and successfully closed.

Recognising the growing need for the provision of mine waste management systems with
increased water efficiency, we have invested in expanding our tailings and waste management
capability. Also, with the greater emphasis on water conservation and social conscience in the
mining industry, we have improved our knowledge of thickened tailings technology. This emerging
technology is attractive to mines operating under strict water restrictions or those that have
limited water resources available, enabling them to attain a competitive advantage in terms of
water use. It also reduces the potential for contamination of soil and water sources, allowing
these scarce resources to be available to other users.

Services • Short- and long- term strategic planning for • Design to accommodate low strength, low
tailings and water management density materials
• Risk and hazard assessment • Paste and thickened tailings schemes
• Failure evaluations • Pilot scale test work and material
• Feasibility studies and financial evaluations characterisation

• Emergency response plans • Design of tailings facilities (conceptual

through to detailed)
• Site evaluation and selection
• Assistance with government permit
• Water balance development and utilisation
acquisition and compliance
• Emissions testing and evaluation
• Assistance with construction management
• Geotechnical, hydrogeological, rheological and quality assurance
and geochemical characterisation
• Assistance with operational monitoring and
• Geotechnical, hydrologic and rheological management
evaluation and design (conceptual through to
• Decommissioning, closure and landform
detailed)
restoration
• Life cycle trade-off studies

18
Construction of flotation tailings storage embankment at Jinfeng, China

Antofagasta Minerals Ferrexpo Poltava GOK Ma’aden Anglo Platinum

(Poltava Mining)
Project: Esperanza, Chile. Project: Al Jalamid, Saudi Arabia. Project: Mogalakwena Mine, South
Project: Yeristovskoe Mine, Ukraine. Africa.
Scope: Conceptual design for tailings Scope: Detail design of the thickened
disposal, including evaluation of Scope: Design of two waste dumps tailings phosphate disposal facility Scope: Establishment, commissioning
conventional cyclone and thickened to store large quantities of soft and pit diversion structure. and operation of a pilot scale
tailings disposal (TTD). overburden and waste rock materials. thickener and evaporation paddocks.
Outcome: The scope of services
Optimisation of storage capacity to Characterise the tailings paste
Outcome: The TTD option was included the detailed design of
match the geotechnical constraints material in terms of rheology and
recommended and pilot testing was earthworks and water diversion
and earth moving strategy. geotechnical properties and calculate
undertaken to establish the likely structures, construction drawings,
water consumption of the tailings
beach angles, seismic properties and Outcome: SRK’s work involved development of technical
material at different slurry densities.
seepage rates from the TTD. Trade- off multidisciplinary cooperation with specifications and schedules of
studies were undertaken to further the mine planners, hydrologists, local quantities, the development of an Outcome: The pilot plant was
evaluate the impacts and costs of institutes and potential earthmoving operations manual, an operational constructed on site along with the
dewatering to a dry product. A BFS specialists. A risk - based approach risk assessment and statement of evaporation paddocks. On-site testing
and detail design for permit submittal to dump design was deemed to be environmental impacts. The project is included thickener optimisation
to the Chilean authorities were appropriate and allow optimisation to be constructed in 2009. and rheology testing along with
completed. The permit was issued of the slope angles to meet local evaporative drying tests. Off-site
in 2008 and the facility is due for authorities’ regulations and practical testing included determination
construction in early 2010. considerations for storage of soft of thickener sizing and operating
overburden waste. parameters along with geotechnical
testing.
19
Heap Leach Engineering
Reducing risks; increasing production

Approach Our approach to heap leach engineering follows the traditional custom of initially defining project
criteria, and then focusing on the most efficient manner to develop conceptual and ultimately
detailed engineering design drawings, specifications and quality assurance programs that meet
the project criteria. Project criteria typically include:

• Regulatory criteria including prescriptive requirements for protection of site environmental

resources such as surface water, groundwater, air quality, flora, fauna and soils
• Corporate criteria including risk management, health, safety, environmental and
community criteria, operational scheduling deadlines, and cash flow constraints
• Engineering design criteria for conceptual through detailed design based on state - of - the-art
engineering practice incorporating all relevant regulatory and corporate criteria for all
phases of the heap leach life cycle, including construction, operational, decommissioning
and closure phases

Experience in both base and precious metal leaching projects has shown that the successful
accomplishment of our design mission requires both a sound understanding of regulatory and
permitting issues, and proficiency in a wide range of technical disciplines including but not
limited to civil and geotechnical engineering, hydrology and hydrogeology, regulatory permitting,
metallurgical engineering and geochemistry.

In striving to maximise leached product recovery, we have developed and implemented innovative
solutions including utilisation of artificially created negative pore pressures in heap ore to
optimise leachate flowpath and product metallurgical recovery. In addition, and based on our
experience with heap and process pond closure design and implementation, we have developed an
approach to closure design that focuses on appropriately reducing (if not eliminating), post-closure
effluent flows and associated water management risks and treatment costs.

Services • Site selection Areva

• Geotechnical investigation Project: Somair Mine, Niger.

• Conceptual through final level design Scope: Leach pad engineering for the
and studies feasibility and detail design of a 17Mt
dedicated uranium leach pad and
• Detailed engineering associated ponds at the Somaïr mine.
• Construction quality assurance
Outcome: Interfaced with Technip
• Operational monitoring and management on the stacker and process solution
application systems, and designed the
• Permitting and regulatory compliance containment and solution collection
• Decommissioning and closure system, performed stability analysis,
designed the solution conveyance and
• Risk and hazard assessment solution pond system, and prepared
a detailed schedule of quantities,
drawings and specifications.
Completed the construction QA/QC
oversight of the leach pad earthworks
and geosynthetics.

20
The heap leach facility at Alamos Gold’s Mulatos Mine in the Sierra Madre Occidental mountain range, Sonora, Mexico

Jipangu Aura Minerals Inc Alamos Gold Inc Areva

Project: Standard Gold Mine, Nevada, Project: San Andres Mine, Honduras. Project: Mulatos Mine, Sonora, Project: Trekkopje, Namibia.
USA. Mexico.
Scope: Design of three phases of heap Scope: Feasibility design for a new
Scope: Geotechnical site investigation leach expansion. Scope: Design of a interlift liner 30 million tonne on-off uranium heap
and engineering design for a 25Mt system and stacking plan for a vertical leach pad and associated process
Outcome: SRK designed the Phase
run‑of-mine (ROM) gold heap leach expansion of the 14,000tpd heap leach solution ponds. SRK designed the
IIB, Phase III, and Phase IV heap
facility and associated process facility. An assessment of the slope 2.5Msq.m pad to optimise the
leach pad expansions. The primary
solution ponds. The 25,000tpd stability of the interliner system was grading requirements, designed the
challenge was to create stable heaps
operation is anticipated to produce conducted to assure stability of the containment and solution collection
in excess of 100m in height, with
heap with net ore height of about 300 heap, with the addition of lower shear system, performed geotechnical site
clay- rich foundation material. SRK
feet on ground up to 13% slope angle. strength liner surfaces. investigations, stability analysis and
developed grading plans that met
water balance, and designed the
Outcome: Design optimised heap stability requirements. SRK’s Phase IIB Outcome: Ore recovery has increased
solution conveyance and solution pond
and proposed ore stacking sequence, work included design and construction 30% with the addition of the first
system.
evaluated containment requirements, management of a cement-amended interlift liner and other factors that
and static and seismic stability. soil foundation that has provided have improved recovery. Outcome: SRK is currently developing
Specific, sub -grade and overliner additional stability for the heap. the detailed design, including bid
versus smooth and textured HDPE document support such as developing
liners were analysed. A water balance schedule of quantities, drawings and
was completed, and solution ponds specifications.
and solution management systems
designed.
21
Environmental and Social Services
Facilitating decisions: permitting, risk management and social license

Approach Whether planning a mine, staying on course, suspending operations or closing a facility, mining companies
need to satisfy numerous and often complex regulatory requirements while simultaneously addressing
community expectations. The complexity can be compounded by a need to prove to investors that risks
are handled appropriately. We can assist you in achieving your ultimate goals, whether they are an
environmental permit, an investment decision, a “social license” to operate or a closure certificate.

Our practical experience with a wide range of mining projects assures the identification of environmental
and social issues critical to a venture’s success. To this end, we work with mining companies to overcome
any challenges; with financial institutions to identify and manage risk; and with environmental regulators
to provide relevant assurances and solutions.

Environmental and social studies often require a multi-specialist approach. Technical knowledge combined
with project management expertise ensures the appropriate level of study is undertaken. Our professionals
have the skills and experience to reduce your risks whilst meeting project objectives in a cost and time-
efficient manner.

We can assist you with monitoring programs, audits and reviews to evaluate the effectiveness of existing
management systems, and identify weaknesses and risk areas in terms of potential environmental failures
and community grievances. Audits also provide a forum for the exchange of technical knowledge and
identification of cost reductions.

Our environmental and social data management skills can turn your data into information, enabling you
to make decisions in real time. Combining appropriate technical skills and experience with available
computer technologies enables the processing and integration of large and varied spatial data sets of
environmental, socio-economic, mining, hydrological and geotechnical information. Outputs can be
analysed and compared, allowing for multi-disciplinary decision support and implementation of unique and
cost-effective solutions.

Services • Site characterisation • Resettlement planning and implementation

• Baseline environmental and social studies • Environmental and social monitoring
• Permitting for mining and associated • Audits and reviews
operations • Risk assessment
• Environmental and social impact assessment • GIS mapping and information management
• Environmental and social management
• Environmental liability assessments and
financial assurance
• Stakeholder involvement and consultation

22
 Conducting ecological studies at Suriname, South America

Oriel Resources NV Bhp Billiton Maatschappij Nunavut Government Standard Bank

Suriname Canada
Project: Voskhod chrome project, Project: First Quantum Mineral
Kazakhstan. Project: Bakhuis bauxite project, Project: Government inspector Limited assets in Zambia, Mauritania
Suriname, South America. exploration checklist, Canada. and Democratic Republic of Congo.
Scope: Undertook an environmental
and social assessment process, Scope: Coordinated a multinational Scope: SRK was asked to develop Scope: SRK initially evaluated the
including baseline studies, stakeholder team to assess impacts in a remote a checklist for use by environmental environmental and social performance
engagement, impact modelling rainforest location to IFC performance inspectors (regulators) with high staff of FQML’s assets with respect to
and reporting. Working with our standards. In addition to considering turnover and increased exploration the Equator Principles and IFC
mining and geology colleagues who mining and waste disposal activities, activity in the region. performance standards on behalf of a
conducted the feasibility study, the the study evaluated impacts of ore lender syndicate group. Over the next
Outcome: A succinct checklist for
challenges were to bring international transport to the refinery and dredging three years and in accordance with
inspectors with varying backgrounds
standards to an area where historical of transport watercourses. the loan conditions, SRK provided
and experience to use as a roadmap
and current mining has resulted in regular review and advice to FQML on
Outcome: Innovative approaches for environmental inspections of
significant environmental disturbance, how to achieve compliance within an
were adopted to compile a baseline grassroots exploration programs.
and to capacitate the community to agreed timeframe.
for a pristine and previously unstudied The exploration companies knew
participate in the consultation process.
region and to work with indigenous what they needed to do to maintain Outcome: Assisted FQML in making
Outcome: Integration of local people and their US and Canadian compliance with regulations and were significant progress towards Equator
regulatory and IFC performance advisors, including the establishment assured these requirements would be Principles compliance.
standards: the requirements to satisfy of a communication forum ensuring a consistent across the entire territory.
lenders and obtain regulatory approval successful partnership with client and
and stakeholder support. stakeholders.
23
Environmental Geochemistry and ARD
Predicting, controlling and managing mine drainage chemistry

Approach Managing mine drainage water quality is a critical concern for all mining operations because
discharges must typically meet stringent water quality standards set by local, regional
and national governments. Acidic drainage remains the most significant issue due to high
concentrations of metals, and costs of treatment to achieve acceptable levels. However, in the
past decade or so, awareness of leaching under non- acidic conditions has greatly increased.

Accurate prediction of leaching effects, and design of practical and proven control measures, is
often critical to the feasibility of your projects. These issues are encountered during permitting of
new mines, optimisation of existing operations, development of closure plans and remediation of
abandoned mines.

The cornerstone of our approach is that the release of ARD (acid rock drainage) is controlled by
geological conditions. We therefore work with your geologists to understand how the geology of
your property affects drainage chemistry, and how it can be used to limit potential impacts and
engineering costs.

ARD potential is also affected by local climatic conditions. We have experience in the full range
of global climates including permafrost in the high arctic, temperate regions, and both wet and dry
regions of the tropics.

Our global team of experienced professionals will assist you to develop cost-effective solutions
to mine drainage issues ranging from severe acidity to dealing with unusual trace elements. Our
experience includes addressing drainage chemistry at all stages of the mining cycle.

Services • Waste characterisation Western Canadian Coal

Corporation
• Evaluation of potential for acid rock drainage
Project: Brule coal mine, British
• Field assessments and monitoring
Columbia, Canada.
• Waste rock dump and tailings instrumentation
Scope: Estimation of water quality for
for poregas and porewater monitoring environmental assessment and design
• Water quality modelling for input into waste of a new coal mine.

management planning and effects assessment Outcome: Water quality estimates

• Site-wide contaminant load balances for waste rock and coal processing
wastes were used as part of waste
• Evaluation of waste management measures and water management planning to
result in an open pit mine design that
• Water treatment evaluations
was subject to rigorous government
• Cyanide geochemistry and waste treatment review. The wastes were not expected
to produce acid but selenium leaching
• Integration of geochemical characterisation
was a particular concern. The project
into mine planning received all approvals and permits
• Assessment of mine closure requirements needed to begin operation, and is now
producing coal.
• Workshops and short courses
• Expert witness
24
 Faro pit, Yukon Territory

Quadra Mining Ltd Ministry of Agriculture & BHP Billiton South Deeps JV
Lands (MAL)
Project: Malmbjerg project, Project: Olympic Dam expansion, Project: South Deeps mine waste
Greenland. Project: Britannia Mine, British South Australia. evaluation, South Africa.
Columbia, Canada.
Scope: Geochemical characterisation Scope: SRK developed a conceptual Scope: Environmental and economic
of a porphyry molybdenum Scope: During 1904-74, the mine model of the geochemistry of the tailings evaluation of historic mine waste
deposit including field sampling, produced about 800,000t of copper. storage facility. Field and laboratory piles and tailings via drilling of
characterisation, mineralogy, acid After the mine shut down, 5Mcu.m of investigations furnished data to describe waste piles followed by geochemical
base accounting, total and leachable contaminated mine water continued processes taking place within and characterisation for environmental
metal content, groundwater chemistry, to flow into Howe Sound each year. beneath the facility. Current porewater geochemistry and geometallurgical
kinetic weathering tests and numerical In 2005, MAL commissioned an within the facility is acidic and a focus assessment of residual value of
predictions using the code PHREEQC to HDS water treatment plant (WTP). of the investigation was predicting the waste for gold, uranium and sulphuric
predict seepage and runoff chemistry Surface water diversions were also long-term evolution of the seepage acid (pyrite). Numerical predictions
from waste rock, lean ore stockpiles constructed to reduce the volume of below the facility. The mobility of assessed impact of metal leaching,
and tailings, and subsequent mixing clean water passing through the plant. metals and radionuclides was examined sulphate release and acid generation
with surface water. Critical issues to better understand attenuation on adjacent river.
Outcome: Surface water diversions
included protection of arctic marine mechanisms that exist in the system.
redirect 300,000cu.m of clean Outcome: Waste piles were
and wildlife habitat, potential
water away from the mine workings Outcome: The work supported reprocessed to recover value and
interaction of ML/ARD from waste
annually, reducing the annual preparation of EIS documentation mitigate potential impacts. Non-
rock disposal and long-term passive
operating cost of the WTP. submitted to the South Australian, economic material was covered and
attenuation of ML/ARD release.
Northern Territory and Federal a passive treatment system was
Outcome: Feasibility study finalised governments in May 2009. implemented to alleviate drainage
and included ML/ARD mitigation. 25 impacts.
Mine Reclamation and Closure
Protecting the environment & transitioning properties to new land uses

Approach The combination of our internationally recognised experience in all aspects of mining with our
knowledge of local requirements makes us the partner of choice for many clients embarking on
mine closure projects.

We recognised the increasing importance of mine closure to the industry in the early 1990s. We
made it a central focus and have since worked closely with industry and governments to develop
the current state-of-the-art practices that meet today’s necessary requirements and standards.

Mine closure planning is necessary at all stages of a mining operation. Current best practice
dictates that all mines should be ‘designed for closure’. Closure plans and related financial
securities are also required for permitting in many jurisdictions. Recent changes to standards for
accounting of “asset retirement obligations” have created an additional need for mine closure
planning and cost estimation. We routinely develop appropriate mine closure plans to meet these
and your needs.

Implementation of closure plans begins with the engineering studies, testing and monitoring
that translate plans into construction drawings. Our experience in these stages includes
detailed closure designs for mines throughout the world. Implementation then continues through
procurement and construction. Our knowledge here ranges from assistance with tendering and
construction QA/QC, to delivery of complete design-build packages.

The importance of mine closure to our business has led to a high awareness of closure
requirements by all of our technical specialists. Reclamation and closure planning is routinely
incorporated into feasibility studies, operating plans, due diligence assessments and many other
areas of our work.

Services • Assessment of closure requirements • Soil cover design

• Management of closure planning • Reclamation design
• Assistance with public consultation • Landform engineering
• Development of closure concepts • Water treatment system design
• Waste characterisation and geochemical as- • Water diversion design
sessment • Construction QA and QC
• Hydrologic assessments • Construction contract management
• Seismic assessments • Construction environmental management
• Water quality predictions • Design- build packages
• Environment assessment • Preliminary and detailed cost estimates
• Earthworks stability assessments • Development of cost estimation models
• Earthworks design

26
 Cover construction over tailings, Colomac Mine, Northwest Territories

U.S. Army Corps of BHP Billiton Deloitte & Touche and Yukon Department of Indian &
Engineers and Bureau of Government Northern Affairs
Project: San Manuel mine and plant
Land Management
sites, Arizona, USA. Project: Faro mine complex, Yukon Project: Giant Mine, Northwest
Project: Elder Creek Mine, Nevada, Territory, Canada. Territories, Canada.
Scope: Development and
USA.
implementation of closure plans for Scope: Development of a closure Scope: Processing of arsenopyrite ore
Scope: The USACE identified the the former underground block cave and remediation plan for the mine generated 230,000 tonnes of arsenic
Elder Creek mine in Nevada as a site copper mine, surface and in-situ leach complex. dust that was stored underground
requiring extra funding for additional operations and milling and smelting when the mine was abandoned in
Outcome: The Faro mine was the
assessment prior to reclamation. facility. 1999.
largest operation in the Yukon and its
Outcome: The USACE and BLM Outcome: Developed strategic closure plan required the agreement Outcome: SRK assembled a team
proposed to stabilise and reclaim closure strategies for the 10,000- acre of two governments and three First that was selected as the lead
portions of the waste rock dumps, facility, which included 4,000 acres Nations. We led the assessment of technical advisor. We led the review
spent heap, ponds, and other of tailing impoundments, 400 acres closure options, and helped to find a of options and the development
disturbance. SRK evaluated the of industrial area and 300 acres of plan that was endorsed by all parties. of a final remediation plan for the
potential environmental impacts, mining area. Prepared the various During the multi-year assessment arsenic dust, and were then asked to
prepared the engineering designs, environmental permit applications and process, we also provided engineering develop a closure plan for the entire
and oversaw the construction efforts. obtained the necessary approvals for for ongoing care, maintenance and site. We are currently leading a full
We prioritised the reclamation closure. Completed the engineering remediation projects. scale demonstration of the innovative
efforts to use available funding to design for the final closure plan and ground freezing technology that was
reclaim components that presented monitored implementation. selected for stabilising the arsenic
the greatest risk of degrading the dust.
environment. 27
Risk Management
Managing the risk, reaping the rewards

Approach The term “risk” has many meanings in the mining world. The current draft ISO guideline uses the
broad definition of risk as “the effect of uncertainty on objectives”, and similarly broad definitions
for “risk analysis”, “risk management” and “risk tolerance”. At SRK we are aware of the broader
perspective, but also of the fact that many areas of our practice require expertise with specific risk
management tools.

Our technical specialists apply state-of-the-art risk management tools related to their discipline.
These tools vary widely. For example, our geotechnical engineers might use a reliability analysis to
estimate the likelihood of a slope failure, and our environmental scientists might use an ecological
risk assessment to characterise the significance of effects on the environment.

Our ability to apply complex risk tools is modulated by experience and judgment. Our specialists
are aware of the weaknesses of overly quantitative risk tools, and work with you to find the
simplest approach.

One of our particular strengths is the ability to integrate the methods used by our technical
specialists into analyses of overall risks. Our processes help to take the numbers generated by
technical specialists and relate them to your broader financial, environmental, community, and
health and safety objectives.

Our goal in all cases is to help our clients achieve “risk efficiency”, i.e. a state in which all of
the technical and non-technical issues facing an enterprise have been identified, analysed and
mitigated to acceptable levels.

Services • Fault-tree analysis of engineered systems Ok Tedi Mining Ltd

• Event-tree analysis Project: Fubilan underground mine

pre-feasibility study (PFS), Papua New
• Reliability analysis of earth structures
Guinea.
• Dam safety risk assessments
Scope: Risk management of PFS
• Human health and ecological risk technical and commercial investigation
assessment for the conversion of an open pit
operation to an underground mine.
• Failure mode and effect analysis
Outcome: A risk investigation was
• Failure mode, effect and criticality analysis conducted for each PFS element and
• Technical-economic model risk analysis the 13 sets of results collated into a
draft aggregate risk register for the
• Enterprise risk assessment and management PFS. A risk workshop was held at
• Facilitation of risk assessment workshops the end of the PFS to agree on final
risk evaluations. The risk register
was included in the PFS report;
risk knowledge applied in project
approval process; and risk controls
were identified for the next phase of
development.

28
Freshwater supply dam decommissioned to mitigate failure risks, Faro Mine, Yukon. The project included engineered features (i.e. meanders, pools, riffles)
specifically designed to create fish habitat within and upstream of the dam breach

Codelco Chuquicamata STX Corporation Indian & Northern Affairs Riversdale Mining
Canada
Project: Chuquicamata Mine, Chile. Project: Surat Basin coal asset due Project: Benga Mine, Tete,
diligence, Queensland, Australia. Project: Development of enterprise Mozambique.
Scope: Investigated the possibility
risk system for closed mines.
of increasing pit slope angles as the Scope: SRK, in conjunction with Scope: Risk management of
pit approached its planned closure. PricewaterhouseCoopers performed Scope: Indian & Northern Affairs a bankable feasibility study
The slope steepening was understood technical and commercial due Canada manages dozens of closed (BFS) technical and commercial
to raise the net present value of the diligence on a defined set of Surat mines in the Canadian north. We investigation into the greenfield
mine, but also an increase in the Basin coal assets for a proposed helped the Contaminated Sites establishment of a 5Mtpa open-pit
likelihood of slope failures. purchase. Program develop an enterprise risk mine and associated infrastructure.
assessment process, including risk
Outcome: Completed quantitative Outcome: A risk investigation was Outcome: A draft aggregate risk
matrices, consequence-severity tables
evaluation to define the risks in performed on each technical and register was collated using the results
and action requirements.
terms of safety and economics, commercial element of the due from a risk investigation which was
quantifying risk levels for different diligence study for which SRK had Outcome: The risk assessment completed for each BFS element. The
slope configurations and comparing responsibility. The results were system is now an integral part of resultant risk register is to be included
results against industry norms. The collated into an aggregated risk INAC’s project management process, in the BFS report by the client, and the
study provided management with the register and included in the report. with annually updated risk registers risk knowledge applied in the project
appropriate basis for decisions about being used to prioritise cost control approval process. Identified risk
slope steepening. as well as environmental, social, and controls are to be included in the next
health and safety improvements. phase of project development.

29
Mine Water Management
Minimising contamination, optimising consumption, improving performance

Approach Efficient water management is essential to nearly all mining and mineral processing activities and
must be dutifully considered during each development and operational cycle – from preliminary
approvals, production, de-commissioning and closure – and its practices must adhere to stringent
environmental and socially responsible policies, with due consideration of all stakeholders.

We promote an integrated approach to mine water management, combining specialist expertise in hydrology,
hydraulics, hydrogeology and water quality with geotechnical, environmental and mining skills. Our extensive
experience in wet, arid, hot and cold climates enables us to provide cost-effective, practical solutions for
your project, and identify methods for more efficient utilisation of water in mining and mineral processing.

Finding a balance between meeting regulatory compliance and cost savings involves innovative thinking.
This includes the conjunctive use of surface, groundwater and recycled water; collecting baseline surface
and groundwater data from early in an exploration project, including borehole water levels, surface flows
and water quality data; and integrating each water component with the total mine water system.

SRK recognises that the key to effective mine water management is a sound understanding of the
process and tailings circuits, and integrating this with climatic data, and recycling opportunities to
form an interactive range of water balances, responsive to process, seasonal and climatic variations
pertinent to the mine at any time. This provides the basis for minimising water make-up, the use of the
right water quality for each operation, and incorporation of contaminated streams into less demanding
activities, saving pumping and treatment costs.

We are widely experienced with managing the potential, and occurrence, of acid drainage through
production and closure, and anticipating likely engineering problems. And we are also proficient in
modelling pit dewatering, identifying contamination risks and designing the most suitable water
control system for your project.

Services • Baseline environmental studies • Quantitative contaminant fate modelling

• Hydrological and hydraulic studies linked to • ARD, water quality and geochemistry
flood prediction • Diversion structures, stormwater controls
• Integrated environmental planning and spillways
• Water balance modelling • Water treatment
• Waste characterisation and management • Engineering design and procurement
• Water supply • Contract management and QA/QC
• Mine dewatering • Permitting and licensing
• Seepage control and contamination
assessment

30
 Continuous flow measurement of seepage from rock pile, Questa Mine, New Mexico

Deloitte & Touche Inc Ma’aden Indian and Northern Affairs Molycorp Questa
Canada
Project: Faro Mine, Faro, Yukon Project: Umm Wu’al phosphate mine, Project: Questa Mine, New Mexico,
Territory, Canada. Saudi Arabia. Project: Creek relocation, Giant Mine, USA.
NWT, Canada.
Scope: A fresh water supply dam Scope: Locate and assess Scope: Evaluation and remote
about 20.5m high and 410m long was groundwater resources and design a Scope: Baker Creek was relocated monitoring of underground mine
no longer needed, and presented well field to supply the proposed mine. away from an open pit through areas inflows to characterise sources of
a risk to the downstream receiving with 30% ground ice in clay soils, so inflow; develop a water and chemical
Outcome: A preliminary field
environment. A decision was taken settlement was a concern. The creek load balance; tracer tests to evaluate
investigation and desk study were
to breach the dam. SRK, with support bed design allowed for flooding and flow pathways in the overlying rock;
conducted to select the best well field
from several other consulting firms, led natural movement of bedding material. and develop a management plan for
site and aquifer for further drilling
the design, planning, permitting and operational and storm water inflows.
investigations. Supervision of drilling Outcome: The channel has performed
decommissioning of the dam.
and construction of three boreholes up as designed, with minor settling filled Outcome: Using a digital flow
Outcome: The project was completed to 900m deep in the Tawil Sandstone in by the mobile bed load. Fish surveys monitoring system, SRK identified the
on time and budget. Some minor aquifer was followed by hydraulic three years after completion indicate sources, quantities and chemistries
post construction modifications testing. Detailed conceptual and high returns. DFO (federal fisheries of various source waters, and
were required in relation to material numerical groundwater models were regulator) has brought department distinguished those source waters
placement in winter, but the breach and then used to assess the aquifer’s long- engineers from across Canada to see from surface water captured by a
related works have been performing as term sustainable yield and potential this successful case study. subsidence zone and conveyed to the
designed. impacts on other groundwater users. underground.

31
Metallurgy and Mineral Processing
Unlocking mineral wealth

Approach Our experienced team of metallurgists and process specialists primarily focus on metallurgical
studies, due diligence and project review, and have played key roles in early stage engineering
studies, process operations optimisation and technical support. We typically team with EPCM
companies for the processing aspects of feasibility studies and for detailed engineering, plant
commissioning and performance trials.

Our team’s experience includes most aspects of extractive metallurgy and mineral processing of base
and precious metals; industrial and energy minerals; diamonds and rare earth elements, including
test work, engineering and operations. We have a strong background in the operation of crushing,
grinding, leaching (tank and heap), concentration, pressure and bio-oxidation, SXEW, smelting and
roasting processes.

Our specialists have strong operations backgrounds, having advanced many greenfields projects
from metallurgical sample identification, test work program development, data analysis, process
flowsheet design, trade-offs and engineering studies through detailed engineering, construction,
commissioning and operations support.

We work to provide value-added economic-sensitive recommendations and results to clients, and

have the tools and experience to maximise economic return to your project. With the increased
demand for experienced technical operating personnel, we can fill the role of senior technical
advisors to provide support and mentoring as needed to your operations and personnel.

With continuing changes to regulatory and financial requirements relating to disclosure and
development of mineral projects, our extensive project review and due diligence experience is
vital to meet your project evaluation requirements. Our specialists are also up to date with modern
sustainable technologies.

Services • Development and supervision of bench and Capstone Mining Corp

pilot plant testing programs Project: Cozamin Mine, Mexico.
• Development of robust and economic Scope: Metallurgical review and plant
processing solutions audit of the copper, lead and zinc mine
• Metallurgical plant design to assure the viability of current and
proposed plant capacities and metal
• Process and metallurgical plant trouble recoveries pertaining to the
shooting and optimisation NI 43-101 level technical report, and to
support a new resource estimate.
• Operational reviews and plant/equipment
audits Outcome: Performed required
metallurgical review and
• Technical advice and training prepared relevant sections of the
• Project review technical report. While on- site,
recommendations were made to
• Due diligence operations personnel for process and
operations improvements to assist with
increases in production rate, metal
recoveries and concentrate grades.

32
 One of two grinding mills at the San Cristobal Mine in Bolivia. SRK performed an independent engineering review of the site operations, particularly for
the mining, processing and project turnaround program

Talvivaara Mining Company Confidential Client Confidential Client Aura Minerals Inc

Project: Talvivaara Mine, Finland. Project: Metallurgical study for a Project: Review of a novel process Project: Metallurgical due diligence
copper/gold/magnetite concentrator, to treat a low- grade tin ore in of operating properties.
Scope: Preparation of a mineral
Russia. Kazakhstan.
expert report (MER) for listing on the Scope: Assist the Aura Minerals due
LSE and a technical audit report of the Scope: Preparation of the Scope: The client has developed diligence team in review of several
feasibility study for debt finance. We metallurgical study including a novel process to recover tin from operating projects proposed for
were also acting as the independent evaluation of laboratory and pilot low-grade materials and required an purchase and make recommendations
engineer for the lending banks. scale metallurgical testing performed independent review of the testwork for process improvements.
in Russia, supervision of comminution and process design as part of the
Outcome: The metallurgical review of Outcome: Due diligence review
testwork to prepare a technical report ongoing commercialisation of the
the project was incorporated into the assisted in the assessment of three
outlining the sizing of SAG and ball process.
MER and audit reports. These reports operating gold properties which
mills based on JKTech parameters.
were used for a successful listing Outcome: Preparation of a report, Aura Minerals is in the process of
of Talvivaara on the LSE and for a Outcome: A metallurgical study including a review of available acquiring.
$US300 million debt finance facility. report was prepared for the testwork, the process chemistry, the
concentrator. A grinding circuit was proposed flow sheet and equipment
specified to cater for a wide range of selection, client’s capital and
ore hardness parameters. operating costs together with SRK
recommendations for further work.

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Geotechnics for Infrastructure
Getting projects onto sound footings

Approach Geotechnical challenges that could influence the development of your site can include geological
environment, ground and groundwater conditions, and seismicity. Additional challenges may
originate from your particular equipment and infrastructure, eg. vibrating mill foundations,
machinery with limited tolerance for settlement and other design constraints for structural and
operational purposes.

Our teams of geotechnical specialists combine extensive knowledge and experience with
sophisticated numerical modelling capabilities to develop appropriate, cost - effective solutions
for your project. Our services include detailed site evaluation for development, foundation design,
preparation of designs and contract management. We also investigate and present specialist and
expert opinions for technical or legal disputes. Examples include investigation and geotechnical
design for buildings, roads, pipelines, bridges, plant site foundations, wharf and docking facilities,
dams and other water retaining structures, shallow undermining and mine closure, as well as for
embankments, excavations and tunnels.

For projects in remote parts of the world, our regional experts ensure that local challenges are
understood. These may include collapsible, expansive or dispersive soils and karst conditions. Our
experts in soil-structure interaction can assist you with the design of tunnel linings, foundations
for volume change soils, lateral support of excavations and optimisation of construction
procedures. Our cold climate geotechnical experts provide specialist input to infrastructure and
foundation designs in permafrost conditions. With our widespread geographical footprint, we can
provide the appropriate expertise to resolve the challenges on your particular project.

Services • Geotechnical investigation Anglo American Exploration

Division
• Foundation design
Project: Túnel Sur, Los Bronces Mine,
• Lateral support and retaining wall design
Chile.
• Borrow material investigation
Scope: Technical site supervision
• Dam design and safety inspection involving the control of operational,
geological and topographic advance
• Excavations and embankments
aspects of conceptual to detail
• Erosion control engineering design for a tunnel boring
machine (TBM) for 8km x 4.5m tunnel.
• Geological hazard assessment
Outcome: First stage of the works
• Terrain stability analysis
included excavation with traditional drill
• Tunnel geotechnics and design and blasting method of the surface portal
and the TBM assembly chamber has been
• Monitoring and instrumentation
finalised. Assembly of the TBM machine
• Land reclamation has begun.

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 The beginning – surface layout of lateral support and load bearing piles, Konkola, Zambia

MLP Miramar Hope Bay Limited Konkola Copper Mines/ Lebalelo Water Users
Vedanta – Grinaker-LTA Association
Project: El Mauro tailings dam, Chile. Project: Doris North Mine, Nunavut,
Mining Contractors
Canada. Project: Lebalelo water supply
Scope: Detail engineering for three
Project: Konkola No 4 Shaft, Zambia. scheme for several platinum mines,
tunnels. Scope: Design of mine surface
South Africa.
infrastructure to support a small Scope: Design of shaft collar, winder
Outcome: Developed the detail
high-grade gold mine in the high house foundations and underground Scope: Feasibility study, design
engineering for three tunnels as part
arctic, as well as geotechnical support for shaft stations, ore silos of overall scheme, environmental
of the El Mauro tailings dam project.
fieldwork, including offshore drilling. and crusher chambers. and social study, geotechnical
Tunnels of 2.4, 2.5 and 3.5km long and
This included a permanent barge investigations and site monitoring.
4.5 x 4.9m section were considered. Outcome: A double ring of piles
off-loading facility, 5km of all-weather Includes a low- level weir with
For the tunnels, portals and waste was designed where the inner ring
roads, all-weather airstrip, camp and sluicing flume and low -level pump
dumps, SRK did the complete was used as initial lateral support
mill foundation pads, laydown areas, station; de-silting structure and off-
design, technical specifications, and outer piles used to support the
bridge, 5ML fuel tank farm, explosives channel storage dam of 570,000m³;
bid documents, assessment during headgear (1000t per leg). The unique
storage facilities, and a precedent- high-level pump station and booster
bidding process and site visit during design aspect involved undermining
setting frozen core tailings dam. pump station each with three
construction. Tunnels are constructed the piles at 25m depth using
pump sets; 20 mega-litre concrete
and in operation. Outcome: The barge offloading segmental adits and an underground
reservoir for scheme management and
facility, road and airstrip were “spread footing” to transfer loads to
balancing storage, and five end-user
subsequently constructed according to the rock head.
storage dams; and power substation,
SRK design and are currently in use,
housing and administration.
allowing greater logistical flexibility.
Outcome: The scheme is operating
35 successfully and to be incorporated
into a larger regional system.
Independent Project Review
Finding fatal flaws; confirming forecasts

Approach We can assist you with acquisitions, equity and project financing, and IPOs, and can provide the
intimate knowledge that you need to produce balanced and focused independent reviews and reports.

Each project has its own characteristics and unique risk areas, which requires the attention of
experienced study managers to efficiently allocate and coordinate resources to produce balanced
and focused independent reviews and reports.

As an independently owned company with no equity in any project, our impartial advice is widely
accepted by the international banking and investment community and a wide range of mining clients.
Our experienced consultants are often requested by finance institutions to conduct due diligence audits
of ore reserves, mining assessments and environmental considerations for inclusion into prospectuses
for stock exchange listings as well as for sale and purchase agreements, and valuations. We also act as
expert witnesses on mining related litigation issues.

We have been involved with some of the largest mining transactions in the world, including the
Katanga mining restructuring, the Harmony/Gold Fields takeover bid, the Kumba Exxaro split, the
due diligence of Noranda/Falconbridge assets, the IPOs of Fresnillo PLC and Fujian Zijin Gold, and
the dual listing of Sino Gold on the HKEx.

Because of our size and geographic spread, we can organise and deploy the required multi-
disciplinary teams at multiple sites around the world concurrently and at short notice. This not only
reduces costs for the client, but also enables rapid progress on several fronts which is often crucial
to meet transaction timelines.

We know what it takes for an independent project review to provide assurance, highlight the areas
of risk, and provide clients with the necessary real, defensible project information to meet the
standards of the investment community.

Services • Independent technical reports for public Aluminium Corporation of

disclosure, compliance and IPOs China (Chalco)

• Technical reviews for mining finance projects Project: IPO report for listing on Hong
Kong and New York stock exchanges.
• Privatisation studies The mining projects were located
• Technical reviews for mergers and throughout China.

acquisitions Scope: We were commissioned to

prepare an independent expert report
• Risk assessments
in a format which complied with the
• Technical assessments and valuations listing rules of both stock exchanges.
This involved review of data, site visits
• Due diligence studies
and reporting on a number of mining
• Litigation work as expert witnesses projects in China.

• Technical audits Outcome: Our report was accepted

by the client, their bankers and other
• Competent /qualified person reports
advisers and the stock exchanges.
Chalco was successfully listed on both
HK and NY stock exchanges.

36
SRK has extensive experience with due diligence studies worldwide, including this small underground coal mine in Guizhou, south China

Lihir Gold Limited Sino Gold Mining Limited Fresnillo PLC Konkola Copper Mines Plc

Project: Lihir Gold Mine, Lihir Island, Project: Secondary listing of Sino Gold Project: Initial Public Offering (London Project: Restructure of KCM assets,
Papua New Guinea. Limited on the HKEx. Stock Exchange (LSE) listing). Zambia.

Scope: We were the independent Scope: Sino Gold had an existing Scope: Technical advice and Scope: Technical advisor to attract
engineer for the banking syndicate to primary listing on the Australian preparation of a mineral expert’s another strategic investor after the exit
the Lihir Gold project. This involved Securities Exchange (ASX) and report for the proposed listing of the of Anglo American. Included technical
annual inspections and reports on equested SRK to complete a technical company’s precious metals assets on audit of existing assets, turnaround
the development and progress of the review and independent expert report the LSE, including the Fresnillo and strategy and identification of short-
project. of its mining and exploration projects La Cienega underground mines; La term opportunities to cut costs and
in China. The report needed to comply Herradura open pit mine; and rights to generate cash, selection of new senior
Outcome: We were retained for more
with the requirements of both the ASX the silver production (the Silverstream management team, and development of
than four years by Lihir Gold and the
and HKEx. asset) from the Sabinas underground a new life-of-mine business plan and
bank syndicate. During that time, we
polymetallic mine. Assets were put in techno-economic model used as basis
completed independent technical Outcome: The SRK report was
a new vehicle and name changed to of financial advisor’s valuations.
evaluations of the technical, social accepted by the HKEx and included
Fresnillo PLC.
and environmental strengths and in the listing documents in both Outcome: Memoranda distributed
weaknesses of the gold project. English and Mandarin. Sino Gold was Outcome: Successful listing raised to interested bidders, assistance
successful in completing its secondary $US1.787 billion for 23% of the with sales process through road
listing on HKEx. First dual ASX/HKEx company. First -ever LSE listing of a shows, support of data room process,
listed mining company. Mexican company. consultation and adjudication of bids,
and negotiations with preferred bidder.

37
Research and Development
Advancing our methodologies and services
We actively seek to participate in applied research projects in mining related fields. Examples of
recent involvement include:

• PCSLC – joint development with Gemcom International of mine planning and

scheduling tool for sub-level cave mines.

• LOP – large open pit design research project spearheaded by CSIRO in Australia.

• Weak Rock Support – internationally industry sponsored project spearheaded by the

Itasca Consulting Group, which addresses problems related to underground
development in weak rock masses.

• MMT – Mass Mining Technology, formerly known as International Caving Study, is an

internationally sponsored project addressing the issues associated mainly with cave mining.

• PETT (Paste and thickened tailings) – pilot schemes to assess thickened and depositional
characteristics of thickened and paste tailings.

• MEND (Mine Environment Neutral Drainage) research program – review of design

and construction methods for mine waste covers in cold regions, identifying both current
deficiencies and opportunities to better exploit cold regions phenomena.

• Collaboration and support of research programs at Université Laval (geotechnical

characterisation, ground freezing), Queen's University (arsenic leaching from tailings)
and INRS (heat and gas flow in waste rock piles).

• 3D modelling of geology through development of Leapfrog™ software and integration

with other advanced 3D geological modelling packages.

• Centre of Excellence in Geochemical Engineering – in partnership with Cardiff

University’s School of Engineering. Research will include:

- Extraction of metals and production of sulphuric acid from complex precious and base
metal mine and metallurgical waste. Two patent processes have already resulted from
this program
- Geometallurgy of uranium deposits
- Assessment of ML/ARD through field and laboratory prediction methods and
geochemical testwork
- Mitigation of ML/ARD, particularly through passive treatment schemes.
- Coal bed gasification technology
- A successful eight-year research partnership has produced more than 30 publications.

• SIMRAC, MHSC (Safety In Mines Research Advisory Committee, Mine Health and
Safety Council), South Africa – our research projects include shotcrete monitoring and
design, static and dynamic support testing for underground mines and calculating
rockfall risk and the cost of rockfalls.

• Selenium task force – development of a selenium leaching model for five large coal
mines in the drainage basin of Elk Valley.

38
 SRK Offices

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Country Website Addresses

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Buenos Aires, Mendoza, Salta Lima

Australia: www.asia-pacific.srk.com Russia: www.srk.ru.com

Brisbane, Melbourne, Newcastle, Perth and Sydney Moscow

Brazil: www.latam.srk.com South Africa: www.srk.co.za

Belo Horizonte Cape Town, Durban, East London, Johannesburg, Kimberley, Pietermaritzburg,
Port Elizabeth, Pretoria, Rustenburg
Canada: www.na.srk.com
Saskatoon, Sudbury, Toronto, Vancouver and Yellowknife Sweden/Finland: www.srknordic.com
Skellefteå/Rovaniemi
Chile: www.latam.srk.com
Santiago Turkey: www.srkturkiye.com
Ankara
China: www.asia-pacific.srk.com
Beijing and Nanchang United Kingdom: www.srk.co.uk
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Hong Kong: www.asia-pacific.srk.com
U.S.A.: www.na.srk.com
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Anchorage, Clovis, Denver, Elko, Fort Collins, Reno and Tucson
Kolkata
SRK Exploration Services: www.srkexploration.com
Kazakhstan: www.srk.kz
Cardiff
Almaty
General Enquiries: [email protected]

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Every type of mining project in all environments everywhere in the world.

To learn more about SRK and how we might help you with your next
mining challenge, please visit:

srk .com

© SRK Consulting 2016

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