1. Smooth Rock Falls Mining
Prefeasibility Study
Battenberg Consultancy
1
2. Executive Summary
2
Life of mine 7Years 3 Months
Mined tonnes ore 4089281
Average grade 4.37
Ounces produced 574539
Net PresentValue (DCR 5%) 178
Net PresentValue inc.Tax (DCR
5%)
117
3. Scope
Located in North-Eastern Ontario
Low Sulphide Gold Deposit
Well established mining area
Commissioned by CSM Resources
to produce a PEA
Designed around existing
underground infrastructure3
4. Property Description and Location
1017.5km2 area
49.125N, 81.75W
Extremely close to the
Trans-Canada
Highway/Ontario 11
Access to the site is
currently a small dirt road
Cochrane Airport is 87.5km
to the east
Timmins city is 128km to
the south
Moderate-low relief
4
5. Existing Infrastructure and Power
Two existing shafts
Development Level at 365m
Fully refurbished haulage
shaft
Haulage capacity of 1600 t/d
Over 60% of Ontario’s energy
is generated from Nuclear
Power
115kV power line is situated
close to the site
Diesel generators will
continue to be utilised
5
6. History
CSM Resources are the second owners of the claim, and thus will have to pay a 2.5%
royalty
Mining in theTimmins district has been a prevalent industry since the early C20th
60.8 million oz’s of gold have been produced in the Timmins district to date
32 Gold producing mines in the Timmins District
6
7. Geology
Regional Geology
The site is located on
part of the Canadian
Shield
Superior Province
Southern Province
Grenville Province
7
8. Property Geology
Glacial till is the main surficial deposit, with bedrock also compromising a
significant amount. The three main types of glacial till are:
Lower Till
Barlow-Ojibway Formation
Cochrane Formation
8
9. Deposit Geology
Dominated by Greenschists
Quartz and Sericite are common wall rock minerals
Deposits generally contain around 2/3% sulphide
minerals
Acid Mine Drainage needs to be considered
9
10. Mineral Resource Estimates
Category Tonnes Capped Grade (g/t Au) Capped Oz (Au)
Measured 1,499,000 3.89 187,300
Indicated 2,661,000 5.56 475,500
Measured & Indicated 4,160,000 4.96 662,800
Inferred 239,000 2.61 20,100
Based on historic diamond drilling , the following table represents the
Mineral Resource estimate.
10
12. 12
What we knew
Initial data consisted of rock types, rock strengths and joint information
What we found
Hanging wall weakest rock type
Stress environment of the deposit
Generally this case is assumed to be a dry excavation therefore groundwater
effects are negligible in
What it means
Stopes designed to be stable
Limited support needed on critical surfaces
13. Rock Mass and Stress Situation
13
In-situ stress profile
established.
Induced stress due to the
openings established using
Examine2D.
Stress distributions around the
excavation and state at the
center on opening.
Induced stress contours
of excavation orientation
looking E-W
Induced stress
contours of excavation
orientation looking N-S
14. Joint Sets
14
Core log data.
Stereographic analysis
displayed the joint
situation at smooth rock
falls deposit.
Major discontinuity
orientations and joint
sets determined.
Stereographic analysis for smooth rock underground
mapping data
15. Stope Design Approach
15
Four Components:
Initial stope dimensions assumed
Stability number equation factors derived
N’=Q’×A×B×C
N’ used on stability graph to obtain Hydraulic radius of proposed stope
Hydraulic radius and stability numbers modified in line with stope stability
requirements
17. Ground Support
17
Very conservative estimates of
support requirements due to
uncertainties and time dependent
behavior of rock mas.
Preliminary analysis showed
support requirements are mostly
unsupported with spot bolting
required in a few areas
Intersections require systematic
bolting and some unreinforced
shortcrete in critical intersections
Underground crusher chamber
requires fibre reinforced concrete
and bolting
Estimated support categories based on the tunneling
index Q (Hoek 1995)
20. Recommendations
20
Further geotechnical data collection is required to ensure that
the rock types and geotechnical domains are tackled.
Stope dimensions of 10 m x 20 m high with respect to
changing strike lengths as mining depth in the ore body
increases are suggested.
Stope dimensions must not exceed the maximum size until
detailed geotechnical data is available to support the rock mass
quality and economic analysis.
A ground control program should be implemented at the mine
in the early stages of development in order to support and
address mine design and safety issues.
22. Comparison of mining methods
22
Cost type Cost per
unit
Obtained from Affected quantities Cost difference between
Transverse and in ore
development ($)
Development 1410 $/m Cost of a 6.1m x 4.6m
excavation in 2011 adjusted for a
4m x 4m excavation and 5%
inflation.
190m footwall drive
10 x 10m crosscuts
+536000
Stope
production
including backfill
39.40 $/t Eagle Mine stope and backfill
costs adjusted for inflation.
Sill pillar tonnage +834000
Processing cost 29.40 $/t Interpolating between given
values.
Sill pillar tonnage +622000
Development in ore
• 3.5m thick sill pillar required
• Total gold value of $5.5m
locked up
• Reduced need for backfill
Transverse bench
and fill
• Skin to skin mining
• Stopes must be
completely
backfilled
Longitudinal
Stoping
• Ore body too
thick
$5490000 − $536000 − $834000 − $622000 = $3.5 𝑀𝑖𝑙𝑙𝑖𝑜𝑛
24. Mine Design
Level Access
Foot-wall Drive
Decline
Cross Cuts
Level Access
Transverse Bench and Fill stoping design based on the geotechnical constraints
Foot-wall drive hugs the ore body
Ramp and decline developed off the existing level
Stopes designed on their economic return
24
30. Mine Production
Total LOM tonnes are 4.09 million
Production peaks in year 2 at 785439Tonnes
Average LOM grade of 4.37 g/t
Grade peaks in year 3 at 5.17 g/t0
100000
200000
300000
400000
500000
600000
700000
800000
900000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Tonnes
Year
0
20000
40000
60000
80000
100000
120000
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Ounces
Year
30
31. Ventilation
• 200m3/s of air is required by the proposed design and equipment quantities
• Booster fans will be required in certain districts, with a power circa 20kW
• Auxiliary fans will provide the headings with clean fresh air
• Air way will act as a second means of egress
31
33. Mine Heating
Ventilation on Demand
A mine heating system will be utilised to provide the mine with 22 MBTU to the mine. It
will be applied as followed;
2 months per year at 100% of heating capacity.
2 months per year at 50% of heating capacity.
2 months per year at 25% of heating capacity.
VOD will be used as different sections of the mine don’t need to be accessed.
When development of the upper section of the ore body has been fully mined, then it can
be fully closed off.
Can save an approximated 10-15% on the operational ventilation costs.
33
34. Backfill
Paste Fill Unconsolidated rock fill
34
Primary stopes and level 9
65 microns particle size
85% tails
High strength - 5.5% binder
Regular strength – 4%
binder
Total volume – 684000m^3
Estimated cost per tonne
$10
Secondary stopes
Reduced need to hoist
waste
Trucked and dumped into
place
Total volume –
600000m^3
Estimated cost per tonne
0.05$/t
43. How the Mine is Impacted by Climate
Change
43
Mitigation
Energy conservation
Improved fuel efficiency &
Green transport
Reducing CO2 emissions
Adaptation
Flood controls
Altering design to adapt to
changing climate trends
Increasing FoS of design to
reduce risk
44. Current Climate of Project Site
44
Continental Climate
Relatively dry Climate
Very hot Summer
Very coldWinters
49. Key Areas of Concern
49
Temperature Increase
Increased evaporation
Demand for heating/cooling of ventilation
Dust pollution
Rainfall
Flood Risk
Precipitation
Water Supply
Increase surface water
Extreme Weather Events
Flash floods
Forest Fires
50. Effects of Climate Change on Mining the Timmins region of Ontario
Event Hazards and Risks Controls
1 Temperature change 1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
Reduced precipitation.
Increased evaporation.
Increased demand on ventilation.
Heating and cooling of ventilation.
Lower lake levels.
Water quality.
Dust.
Freezing of ground and water
1.1.1
1.1.2
1.2.3
1.3.1
1.3.2
1.4.1
1.4.2
1.5.1
1.5.2
1.6.1
1.6.2
1.7.1
1.8.1
Look at alternative sources of water supply.
Increase depth of boreholes.
Cover water storage facilities.
Install versatile fans that can increase demand.
Install booster fans in areas with low ventilation.
Heating has been installed in the mine ventilation
already so can be used when required.
Models indicate that only an increase in
temperature will be seen, therefore no cooling will
be required.
If boreholes cannot supply full amount of the
water and local lakes are used these need to be
assessed to determine the effect on local wildlife,
and the local community supply of water.
Pumping may be required from a greater
distance.
Not used as drinking water.
Water goes through gravel treatment before use
in the mill or sent underground.
Water is used to supress dust from becoming
airborne underground.
Water supply affected, pumping from greater
distance may be required.
2 Rainfall 2.1
2.1a
2.1b
2.1c
2.2
Damage of water supply, effecting:
Quality of water.
Amount of water.
Conflict with locals.
Flooding on surface.
2.1a.1
2.1a.2
2.1b.1
2.1c.1
2.1c.2
2.2.1
2.2.2
2.2.3
2.2.4
Not used as drinking water.
Water goes through gravel treatment before use
in the mill or sent underground.
Water stored in surface water bowsers.
Collecting water supply from boreholes, thus not
effecting local water supply.
Low local population.
Tailings dam has additional pumping capacity.
Size of tailings dam has been designed to always
have available additional capacity in case of
flooding.
Surface mine services will be insured.
Assumed open pit is designed so slopes cope
50
52. EIS Requirements
52
An EIS is necessary in order to proceed with the operation. It
entails:
Scope of the project and purpose
An identification of the potential negative environmental
impacts of the project, with all components at all project
stages
An identification of technical and economically feasible
mitigation measures to reduce or eliminate these impacts
Government/Public Consultation
Aboriginal Concerns
Consideration of the physical, biological and human
environment
53. Stages of an EIS
53
Permits
Consultation with Public and First Nations communities
Existing Environment and Baseline Studies
Socio-economic and cultural resource considerations
Impact Assessment on Existing Environment (Including
Mitigation Procedures)
Alternatives
Closure Plan
54. Impact Assessment Summary and
Mitigation
54
The following areas in which the way the project will
affect the environment are as follows:
Impact onWater supply and water management/water
quality
Impact onTerrestrial and aquatic environment
Impact on Air Quality and Acoustic environment
Potential Acid Mine Drainage
Transportation effects
Greenhouse Gas Emissions
55. Existing Environment
55
A requirement of beginning mine production is
Consultation, which must be held with a full array of
stakeholders, including public, project, and First Nations.
Baseline studies of the following are to be undertaken:
-Atmospheric Environment,Aquatic Environment,Terrestrial
Environment,Wildlife, Species at Risk and Socioeconomic
status
56. Alternatives to Project Implementation
56
Also considered were some ways the project could be
implemented
The potential different modes of implementation
considered were Project Location, Mining method,
Processing plant location, tailings dam location/disposal,
access routes into the mine, electrical transmission
routes, and site closure
57. Mine Closure and Remediation Plan
57
Following the Ontario provincial regulations of 240/00,
we have addressed the following concerns:
- Site Access Restriction
- Closure of Mine openings
- Continuation of physical, chemical and biological
monitoring programs
- Waste management, securing of petroleum products,
chemicals and waste
- Ensuring ongoing stability of rock piles, overburden piles
and tailings storage dam
- Rehabilitation of the site
58. Site Access and Openings Closure
58
Upon completion of post-closure monitoring, access
roads will be deconstructed
North and South shafts will be capped with either
concrete or steel caps
Maintenance of Chainlink fence surrounding tailings dam
will continue until backfilled.
59. Open Pit and Underground Closure
59
Backfill has been chosen as the method of rehabilitation
Backfilling on the surface cannot commence until the
completion of underground mining and rehabilitation
Underground, Backfilling is due to begin as soon as a stope
is fully excavated, so throughout the mine life backfilling will
be part of the mining process
Any disturbed surface locations will be shaped and
resurfaced with topsoil from the stockpile, and re-vegetated
It is anticipated that there will be no ore stockpiles left
Waste rock stockpiles will be graded, sloped and
vegetated for rehabilitation
60. General Site Rehabilitation
60
The aim is to restore the site to its original state before
the project began
All plant equipment not necessary to continue water
treatment will be removed
All vehicles and buildings/surface infrastructure will be
dismantled or sold
Surplus materials such as sheet metal, insulation will be
collected and recycled/sold
Removal and Clean-up of waste present on site
61. Tailings Storage Dam
61
It is anticipated there will be some Tailings left in the dam
after production ceases
Monitoring will continue until results indicate that runoff
and seepage from the tailings storage dam is of sufficient
quality for untreated discharge as according to GCDWQ
standards
Maintenance of geotechnical and water quality
instruments will continue
Once tailings have been rehabilitated the tailings storage
dam will be backfilled
62. Post-Closure Activities
62
Monitoring and maintenance of this equipment will
continue for around 10 years after mine closure,
including:
-Physical stability of underground excavations
-Physical stability of the backfilled Crown Pillar
-Water quality and inflow from various points
Operation of water treatment facility
Upkeep of recycling pumps to collect seepage/runoff near
the tailings dam
Upkeep of buildings and roadways necessary for post-
closure
71. Business risks
71
Summary
• The key business risks for the project are presented by First Nation regulation in
the region.
• Reduced risk due to access to infrastructure and a skilled work force.
• Battenberg Consultancy predict that from a risk stand point the project is an
attractive one for investors.
72. In Conclusion
72
NPV at 7.5%
Pre-Tax: US$152M
Post-Tax: US$98M
IRR
Pre-Tax: 24%
Post-Tax: 20%
The Company recommends that this project be taken
forward to BFS
Consideration of surface mining only.
