ags project update public meeting st. lawrence lindsay...
TRANSCRIPT
AGS Project UpdatePublic Meeting St. Lawrence
Lindsay GorrillApril 19, 2016
Tonight’s Agenda
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• Overview of the AGS Project.
• Break for coffee/tea.
• CFI staff will be at the posters.
• Guests invited to have discussion with staff at posters.
History of Mining in St. Lawrence
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• As you know St. Lawrence has a long mining history.• 1933 to 1978: continuous mining operations.• 1986 to 1992: mining resumed• 1994 to present: ongoing reserve delineation,
preliminary engineering, pre-feasibility and feasibility analysis.
• Numerous attempts to re-start the mine have failed due to market conditions and high capital costs.
AGS Discovery
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2013• AGS fluorspar vein (formerly known as Grebes
Nest) discovered through new diamond drilling and identified over 7 million tonnes of fluorspar resources in the Inferred Category.
• AGS is named after the late Arthur Gordon Stollery, founding and major shareholder of Burin Minerals that became Canada Fluorspar.
2014 • More exploration drilling occurred and mineral
resources at the AGS property was increased to over 9 million tonnes with a significant portion of the resources in the Indicated Category.
Major Fluorspar Veins
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• CFI 100% owned by Golden Gate Capital.• GGC is a reputable private equity firm based in San
Francisco.• The main components of the Project include:
• Surface and underground mine development of the AGS Vein.
• Mill facility, with a production capacity of up to 200,000 tonnes per year of acid-grade fluorspar concentrate.
• Tailings Management Facility to store 2.8 million tonnes of tailings over the life of the Project.
• Infrastructure to support the mine and mill.• $250 million capital costs, minimum 10 years production.• With the discovery of other fluorspar ore bodies in the vicinity
of AGS, the life of the mine could be significantly extended.
Project Description
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Overall General Arrangement
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Site General Arrangement
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• Mill Building• Ore storage Building• Transfer Tower• Electrical Building• Concentrate Storage Building• Admin. & Engineering Building• Storage Buildings• Security Building• Flocculent Treatment Building• Laboratory Building• Dryhouse• Maintenance Buildings
Buildings at Site
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Mine General Arrangement
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3D Model View of Mill Area
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Project Schedule
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Safety • Safety culture is a strong focus.• CFI is developing plans to eliminate or minimize the risks of
human injury or damage to property throughout the life the project; this applies to all components and structures.
• A project specific health and safety manual is being created that will set the expectations for all contractors performing work on the project.
Milestone• CFI employees have worked 57,807 person hours without
recording a medical aid or lost time injury.
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Environment • Safety and environmental stewardship are priorities
for CFI.• Several environmental management plans are
being developed prior to start of construction.• Environmental Management Plans developed and
being implemented:• Environmental Protection Plan• Waste Management Plan• Environmental Effects Monitoring Plan• Water Management Plan• Rehabilitation and Closure Plan
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• Regulatory approval with conditions received Nov 2015.• CFI subsequently submitted revised information to provincial
government.• Certificate of Approval for Construction received in April from
Department of Environment and Conservation.• Bankable feasibility study completed in March.• CFI currently making plans to secure financing for Project.• Long lead items have been ordered:
• Mill building• Dense Medium Separator.
• Limited site work expected to begin in April.• Once financing is in place, Project will move to construction
phase where majority of contracts will be awarded and employment opportunities will be available.
Project Status
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Fluorspar Market
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Fluorspar Market• Fluorspar market is internationally competitive.• CFI is competing for customers with established mines in
Mexico, South Africa, Vietnam and China.• St. Lawrence will be the only operating fluorspar mine in
Canada and the US.• Location of AGS Project in St. Lawrence is advantageous
– near North American & European markets• While the long term outlook for Fluorspar appears
positive, market prices have dropped putting significant economic pressure on the AGS Project.
• Fluorspar is a product that supports the ‘green’ initiative.
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Fluorspar MarketThe Fluorspar Value Chain > $112 billion*, listed as strategic mineral –USA, China and EU • Aluminum
• Steel• Aerospace
• Electronic & Communication • Computer Applications• Flame Retardant Apparel• Housewares• Specialty Coatings
• Fire Extinguishing • Refrigerants• Air Conditioning• High Performance Materials• Lithium Batteries
• Nuclear Power• Solar Panels
Fluoropolymers & Fluorochemicals provide a stable & growing source of Fluorspar demand•-‐ Source -‐ SRI Consulting
Fluorochemicals
Fluoropolymers
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Tailings Management Facility
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Tailings Management Facility (TMF)• CFI is committed to a project that has the least negative impact
on the environment & surrounding communities.• Tailings are produced as a by product of milling; sand-like texture.• The original environmental assessment application sought the
use of Shoal Cove Pond (SCP) as the preferred TMF.• SCP is an existing tailings pond which commenced use in 1933.• Reactivation of this existing tailings pond would have resulted in
upgrading the facility to current standards.• Fish are present, however, SCP is not used as a recreational
fishery.• November 2015: all areas of the Project were approved, with the
exception of the use of SCP as the TMF.• CFI is appealing this decision through DOEC.
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• Established as tailings pond in 1933
Shoal Cove Pond Tailings Pond
Shoal Cove tailings pond, 1949
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• NL Department of Environment and Conservation directed CFI to develop alternative means of proceeding with the deposit and storage of tailings.
• CFI has identified an alternative TMF – AGS East and received regulatory approval in March 2016.
• AGS East will safely store tailings for 10 years.• For future mining operations, Shoal Cove Pond is required for
tailings deposition.• CFI is working hard secure permission to utilize SCP for future
use.
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Tailings Management Facility (TMF)
AGS East
• The Tailings Management Facility for the AGS Project will be located immediately north of the mill site.
• Tailings will be deposited into the Tailings Impoundment using a perimeter discharge pipeline.
• Excess Water will be transferred from the Tailings Impoundment to the Polishing Pond.
• Water in the Polishing Pond will either be reclaimed for process or discharged.
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Fluorspar Concentrate Transportation
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Transportation Update
• The original AGS Project Description included the construction of a marine terminal in the outer St. Lawrence Harbour for the loading of fluorspar concentrate.
• The construction of a new marine terminal has been determined to be too costly for the Project at this time.
• CFI was forced to investigate other technical & economically viable transportation options to move fluorspar concentrate.
• Studies indicate that having the concentrate shipped from an existing marine facility for the first few years of operation greatly improves the economic viability of the Project.
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Transportation Update• CFI has determined that shipping concentrate from Cow Head is
the most economic transportation for the first few years of production; otherwise the Project would be uneconomic.
• Trucking 45km to Mortier Bay would result in 7 -10 additional trucking related jobs (drivers & load operators) for qualified residents of St. Lawrence, second priority for residents of Burin Peninsula.
• Safety features:• Trucks will be covered to prevent loss of material in transit• Fluorspar concentrate is not regulated under Transportation
of Dangerous Goods (TDG).• Transportation schedule will be designed to avoid school time
and heavier traffic times.• Vessels would load concentrate from Cow Head and proceed to
market.
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Transportation Update
• Our plan is to build a marine terminal. • The Town will assist CFI in acquiring federal
government funding for the construction of a marine terminal shortly after mine operations begin.
• We commit to working diligently with the Town of St. Lawrence to secure the federal funding to build the marine terminal.
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Economic Benefits
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Economic Benefits• AGS Project will have a very positive, significant
impact on St. Lawrence and the Burin Peninsula.• Benefits include:
• 350 - 400 construction jobs for 2 years• 200 full time jobs for 10 years +• 525 additional indirect jobs
• Life of mine is expected to be significantly longer than 10 years.
• Direct salaries of approximately $10 million per year• Gender Equity and Diversity Program being
developed.
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Project Employment – Sample Construction Phase
Pipefitters Electricians Welders
Heavy Equipment Operators
QA/QC Personnel
Project Schedulers
Millwrights Mechanics Insulators
Sheet Metal Workers
Concrete Finishers
Crane Operators
Construction Labourers Carpenters Truck Drivers
Industrial Painters Scaffolders Drillers
Ironworkers
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Project Employment – Sample Operations PhaseGeneralLabourers
Blaster Maintenance planners
Human Resources
Heavy Duty Mechanics
ProcessPlant Operators
Accountants Purchasers
Millwrights LabTechnicians
Admin Support
Others
Electricians HSEpersonnel
Heavy Equipment operators
Haul Truck Drivers
MineEngineers
Geologists
Drillers Surveyors Miners
Warehousepersonnel
Operations Supervisors
Truck Drivers
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Recruitment• Hiring preferences will be aimed at qualified residents within
the local area, the Burin Peninsula and then Newfoundland and Labrador.
• CFI positions are posted on website: www.canadafluorspar.com.
• CFI will expect the same from our contractors, once major contracts are awarded.
• Formed a partnership with Keyin College• Secured St. Lawrence campus to train students for
mining and milling jobs.• Training programs being developed
• Haul Truck drivers in association with training partner KeyinCollege.
• Plant Operators – simulator training• Implementing an apprenticeship program.
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Recruitment• CFI is currently recruiting the following:
– Accountant– Security Officers– HSE Manager– HSE Co-ordinator– Environmental Technician
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Community Relations• CFI is committed to being an exceptional corporate
citizen, embracing community spirit by supporting community initiatives – Solid and respectful working relationship with the Town of St.
Lawrence.
• Committed to communicate important Project information– CFI website launched: www.canadafluorspar.com– Check regularly for Project updates and job postings
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Commitment to Community• CFI is establishing a fund to support
initiatives in St. Lawrence – Initial investment of $100,000 already made:
• Renovation to Rec Centre • Commemoration of 75th Anniversary of Truxtun and Pollux
planned for February 2017• State-of-the-art soccer score clock to St. Lawrence Soccer
Association• St. Lawrence Academy Safe Grad night.
• Fund for construction and operations phases being developed and will be announced publicly.
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Conclusion• Thank you for coming tonight.• CFI is committed to delivering the AGS Project in a
safe and environmentally responsible manner.• Economic benefits to St. Lawrence and the Burin
Peninsula are a priority to us.• AGS Project is moving along. Expect financing to be
in place in 2016.• Committed to being open; Project information
available on website.
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Thank You.
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