golder pastetec corporate profile[1]

CORPORATE PROFILE

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Golder PasteTec™ offices are located in Canada and the United Kingdom in the following locations:

Sudbury Ontario, Canada 1010 Lorne Street T 705-524-5533

MiSSiSSaugaOntario, Canada 6700 Century Avenue T 905-567-4444

FalMouthCornwall, United Kingdom 5 & 8 Tidemill House, Discovery Quay T 44-1326-211470

As well, we have Golder PasteTec™ teams who operate in:

ProvidenciaSantiago, Chile Av. 11 de Septiembre 2353, Piso 2 T 56-2-594-2000

MiraFloreSLima, Peru Av. La Paz 945 T 51-1-610-1700

belo horizonteBrazil Av. Barao Homem de Melo, 4484-2 andar T 55-31-2121-9800

From these locations, our Golder PasteTec™ staff organize and conduct projects throughout the world.

1.0 COMPANY PROFILE > 02

2.0 PASTE PLANTS THROUGHOUT THE WORLD > 04

3.0 CORE VALUES > 05

4.0 OUR PEOPLE > 06 4.1 SENIOR MANAGEMENT TEAM > 07

5.0 HEALTH AND SAFETY > 08

6.0 INTRODUCTION TO PASTE TECHNOLOGY > 12 6.1 WHAT IS PASTE? > 13 6.2 TAILINGS > 14 6.3 PASTE APPLICATIONS > 15 6.4 PASTE BACKFILL > 16 6.5 SURFACE DISPOSAL > 17 6.6 FUTURE PASTE TECHNOLOGY OPPORTUNITIES > 18 6.7 OTHER PASTE TECHNOLOGY APPLICATIONS > 19

7.0 SERVICES > 20 7.1 GENERAL CONSULTING SERVICES > 22 7.1.1 BACKFILL MANAGEMENT PLANS > 23 7.1.2 MINE SITE BACKFILL MATERIALS SURVEY > 24 7.1.3 BACKFILL MIx DESIGN > 24 7.1.4 BACKFILL AND SURFACE WASTE DISPOSAL SYSTEM AUDIT

AND OPTIMIzATION > 24 7.1.5 TAILINGS TRANSPIRATION > 25 7.1.6 RHEOLOGY INDEx TESTING > 25 7.1.7 BINDER STRENGTH TESTING > 26 7.1.8 BACKFILL GROUND SUPPORT TESTING > 26 7.1.9 GEOTECHNICAL TESTING > 26 7.1.10 GEOCHEMICAL TESTING > 27 7.1.11 SURFACE PUMP LOOP RHEOLOGY TESTING > 27 7.1.12 UNDERGROUND PRODUCTION SCALE GRAVITY FLOW TESTING > 27 7.2 DESIGN & ENGINEERING (PRELIMINARY & DETAILED) > 28 7.2.1 BACKFILL AND SURFACE DISPOSAL PRODUCTION SYSTEMS > 28 7.2.2 BACKFILL AND SURFACE DISPOSAL DELIVERY SYSTEMS > 28 7.2.3 CAPITAL AND OPERATING COST ESTIMATE > 28 7.3 DETAILED ENGINEERING > 29 7.3.1 PROCESS > 29 7.3.2 GENERAL ARRANGEMENT > 30 7.3.3 CIVIL / STRUCTURAL > 30 7.3.4 MECHANICAL > 30 7.3.5 PIPING > 31 7.3.6 ELECTRICAL/INSTRUMENTATION > 31 7.3.7 PROCUREMENT > 31 7.4 CONSTRUCTION MANAGEMENT, COMMISSIONING & TRAINING > 32 7.4.1 SITE MANAGEMENT > 32 7.4.2 COMMISSIONING AND TRAINING > 32 7.5 ADDITIONAL GOLDER PASTETEC™ SERVICES > 33 7.5.1 PASTE ROCK > 33 7.5.2 BACKFILL CONTRACTING & OPERATIONS / MOBILE PASTE PLANTS > 34 7.5.3 TAILINGS DEWATERING / WASTEWATER MANAGEMENT > 34

8.0 GOLDER PASTETEC™ PROjECT METHODOLOGY > 36

9.0 PROjECT ExPERIENCE > 38 9.1 ENGINEERING, PROCUREMENT, CONSTRUCTION MANAGEMENT (EPCM) /

DETAILED ENGINEERING PROjECTS (SURFACE AND UNDERGROUND) > 40 9.1.1 CONCEPTUAL, PRELIMINARY AND BASIC ENGINEERING > 44 9.1.2 FLOW LOOP TESTING > 45 9.2 SURFACE DISPOSAL PROjECT ExPERIENCE > 46 9.3 OIL SANDS PROjECT ExPERIENCE > 49

10.0 GOLDER PASTETEC’S™ FUTURE > 50

CORPORATE PROFILE

Table of conTenTs

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Golder Paste Technology Ltd. (Golder PasteTec™), based in Sudbury, Ontario, Canada was formed in 1996 as a fully owned subsidiary of Golder Associates Ltd., a highly-respected global group of consulting companies specializing in ground engineering and environmental services.

Golder PasteTec™ provides consulting and engineering services specific to placement of thickened tailings or paste as underground backfill or for surface disposal. Our staff are highly-qualified specialists in mine backfill, materials characterization, tailings dewatering, water treatment, and mineral waste handling and transportation.

We offer a full range of services including laboratory testing, conceptual, pre-feasibility and feasibility consulting studies, engineering design and procurement, construction management and operational management and support.

Our team:

• Has been significantly involved in the majority of the paste systems and plants constructed and operated in the world today.

• Has taken paste technology, which began as an underground mining backfill application, and expanded its use to include surface mine tailings disposal as well as important innovative solutions in the power, oil & gas, and land development sectors.

• Has transitioned paste technology use from the mining industry to include industries generating fly ash, coal spoils, oil sands fine waste and other mineral waste materials.

We have grown to over 100 engineers, technicians, designers and construction managers located in Canada, Europe and South America and have been the preferred consultant for the study, design and construction management of over 15 paste systems for underground backfill, including:

> Green’s Creek – Alaska> Cannington – Australia> Red Lake – Canada> Caraiba – Brazil> Neves Corvo – Portugal> Campbell – Canada > Henty – Tazmania> Macassa – Canada> zinkgruvan – Sweden> Great River Energy – United States> Laronde – Canada> Bulyanhulu – Tanzania> Kidd Creek – Canada> Cayeli – Turkey> San Rafael – Peru> Big Gossan – Indonesia> Colstrip – United States> Cerro Lindo – Peru> Diavik – Canada

Golder PasteTec™ specialists work in partnership with the mine services teams of Golder Associates (including mine waste management, ore evalu a-tion, mining environmental and rock mechanics) to ensure that a full range of experienced personnel are available around the world to resolve practically any engineering issue that our mining clients may encounter.

Globally, Golder is now one of the largest privately-held engineering and environmental science consulting group of companies in the world. Our global group of companies currently has over 160 offices worldwide and we have worked on projects in more than 140 countries receiving numerous awards for the development of reliable, cost-effective solutions.

COMPANY PROFILE

1.0

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Clients are the heart of our business. In every aspect of our client relationship, the specialists at Golder PasteTec™ are committed to providing technically superior, innovative and practical solutions that meet the needs of our clients.

The focus of every Golder PasteTec™ employee is:

• Dedication to client goals on a corporate and personal level

• Application of innovative approaches that are results-oriented to support client objectives

• Pursuit of outstanding quality in every task the company undertakes

• Commitment to integrity and high ethical standards in all client relationships

• Performing the job in a safe manner

The mission of Golder PasteTec™ is to be:

“A trusted global partner who provides innovative engineering design and project delivery solutions

with expertise focused on dewatering & treatment, material characterization, handling and transport

of mineral waste.”

• Golder PasteTec™ Offices• Golder PasteTec™ Underground and Surface Disposal Paste Projects

PASTE PLANTS THROUGHOUT THE WORLD

CORE VALUES

2.0 3.0

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Nick SladeRegion Manager – EuropeLocated in Cornwall, United Kingdom T 44-1326-211470 email: [email protected]

Joao ScolaManager – South AmericaLocated in Santiago, Chile T 56-2-594-2000 email: [email protected]

emmanuel PornillosManager – South AmericaLocated in Lima, Peru T 51-1-610-1700 email: [email protected]

Nural KuyucakGlobal Practice Leader – Process EngineeringLocated In Ottawa, Canada, T 613-592-9600 email: [email protected]

Bruno mandlGlobal Practice Leader – MiningLocated In Sudbury, Canada T 705-524-5533 email: [email protected]

Golder PasteTec’s™ senior management team consists of the leaders from our Canadian, European and South American operations.

The senior management team works as a cohesive unit to formulate and implement Golder PasteTec’s™ global strategies.

Our senior management team includes:

Jim anderson President Located in Sudbury & Mississauga, Canada T 905-567-4444 email: [email protected]

Sue LongoRegion Manager – North America Located in Sudbury, Canada T 705-524-5533 email: [email protected]

Chris LeeTechnical DirectorLocated in Sudbury, Canada T 705-524-5533 email: [email protected]

rob BrownGlobal Practice Leader- Construction & Operations Services Located In Mississauga, Canada T 905-567-4444 email: [email protected]

Frank PalkovitsGlobal Practice Leader – Consulting ServicesLocated In Sudbury, Canada T 705-524-5533 email: [email protected]

> Mining Engineers> Construction Managers> Structural Engineers> Process Engineers> Mechanical Engineers> Electrical & Instrumentation Engineers> Laboratory Specialists> CAD Designers> Project Managers

Golder PasteTec™ staff work hand-in hand with the over 6,500 employees of Golder Associates. Our network of offices, staffed by local professionals and supported by our world-wide teams, are a key distinctive feature of Golder PasteTec™.

Our broad, in-depth base of knowledge and expertise allows Golder PasteTec™ professionals to develop innovative solutions to complex technical problems.

4.1SENIOR MANAGEMENT TEAM

OUR PEOPLE

4.0

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In addition to compliance with legislated requirements, Golder PasteTec™ has developed a formal occupational health and safety (OH&S) program that includes a 12-element OH&S manual and appropriate standard work procedures. Our program is intended to protect the health and safety of our project staff, other workers, and the general public, and is intended to mitigate risk for our clients. • A structured health and safety

management system

• Region-specific health and safety manuals

• Detailed health and safety procedures for all work activities, including but not limited to: hazard identification checklists, Best Practice guides for the hazardous materials surveys, emergency response plans, safe work procedures, first aid procedures, and others

• A structured incident response and reporting system

We value the health and safety of our employees and are committed to providing the time and resources necessary to enable our employees to perform their work in a safe and healthy manner. To that end, we maintain a compre-hensive health and safety program, including but not limited to the following:

HEALTH AND SAFETY

5.0

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As standard practice, Golder PasteTec’s™ project managers are responsible for preparing a project-specific Health and Safety Plan at the outset of every project, which is reviewed by our regional Health and Safety Coordinator prior to issuance to project personnel. The plan will include an identification of the key hazards, the need for personal protective equipment, emergency procedures and contacts, etc. These plans are carried by our field personnel at all times while conducting project site work. Golder PasteTec™ personnel are also provided with the personal protective equipment required for project work, in accordance with regulatory health and safety standards.

In addition, during the execution of field programs, work sites are subject to both planned and unplanned inspections by health and safety representatives, the outcome of which is subject to senior management review and immediate action (if unsafe work conditions are determined).

The health and safety of our people is paramount. No business objective is so important that it will be pursued at the sacrifice of the well being of our employees.

Golder PasteTec™ will provide the resources necessary to promote a safe and healthy work environment in compliance with our established health and safety management system. Our leaders are committed to this vision.

Golder PasteTec’s™ health and safety management system is based on a “continuous improvement” model. The system focuses on:

• Safely planning the work through hazard recognition and risk assessment

• Developing controls and safety procedures

• Providing the necessary health and safety resources

• Training our staff

• Communicating the health and safety responsibilities of all personnel

• Ensuring that safety controls are being implemented and are effective

• Conducting regular site inspections, audits and investigations

• Obtaining feedback from our staff and our clients to ensure that required corrective actions are implemented

Each of our employees is expected to conduct themselves responsibly and to maintain a

work environment that is safe for themselves, their colleagues, our clients and contractors.

WORK SAFE – HOME SAFE

5.0 HEALTH AND SAFETY (CoNT’D)

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In the past decade, paste technology has progressed from a research-based concept to a widely accepted and extensively practiced engineering solution for managing mineral waste.

It is now generally recognized that significant engineering, scheduling, production and environmental benefits are gained from the use of paste technology in underground backfill and surface disposal applications.

Paste is a non-segregating engineered mixture of solids and water.

More specifically, paste:

• Is an engineered mixture of solids and water

• Possesses a yield stress

• Produces a measurable slump (as per the American Society for Testing and Materials ((ASTM test # C143))

• Has a maximum slump of 250mm (10 inches)

• Can be moved through a pipeline by gravity, positive displacement pump, centrifugal pump

• Has no critical flow velocity

• Consistently demonstrates the ability to have minimal material segregation and minimal water bleed at any stage of transport or placement

Paste is a non-segregating engineered mixture of solids and water.

WHAT IS PASTE?

6.1

INTRODUCTION TO PASTE TECHNOLOGY

6.0

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Extensive research conducted in Canadian mines in the early 1990’s resulted in steady advances in the preparation and transportation of paste. Since that time, the acceptance of paste backfill plants, especially in bulk mining, has become widespread.

The first paste plant built solely for the disposal of mineral tailings was constructed in 1999 and, since then, over 30 paste installations have begun operating or are in various stages of design or construction throughout the world.

Today, there are two main applications for paste technology:

• Underground backfill (utilized primarily in the mining industry but is also applicable in other industries, such as land development, where void filling is important)

• Surface disposal of mineral waste materials (typically mine tailings) or other industrial residues (including surface disposal of industrial mineral sludges)

Paste technology, while prevalent today, can trace its roots back over thirty years. It was first introduced for use in:

> Europe – 1978> United States – 1980> South Africa – 1984> Canada – 1984

The common minerals and elements found in tailings include:

• arsenic (found in association with gold ores)

• Barite

• Calcite

• Fluorite

• radioactive materials (naturally present in many ores)

• mercury

• Sulfur (forms many sulfide compounds / pyrites)

• Cadmium

• Hydrocarbons (oils and greases introduced by mining and processing equipment)

The common additives found in tailings include:

• Cyanide – as both Sodium Cyanide (NaCN) and Hydrogen Cyanide (HCN) (Leaching agent in extremely dilute quantities which readily volatize upon exposure to sunlight)

• SeX – Sodium Ethyl xanthate Flotation agent

• PaX – Potassium Amyl xanthate. Flotation agent

• mIBC – Methyl Isobutyl Carbinol Frothing agent

• Sulfamic acid – Cleaning / descaling agent

• Sulfuric acid – Used in large quantities in the PAL process (Pressure Acid Leaching)

• activated Carbon – Used in CIP (Carbon In Pulp) and CIL (Carbon In Leach) processes

• Calcium – Different compounds – introduced as lime to aid in pH control

Tailings (also known as slimes, tailings pile, tails, leach residue, or slickens) are the materials left over after the process of separating the valuable fraction from the worthless fraction of an ore.

In coal and oil sands mining the word ‘tailings’ refers specifically to fine waste suspended in water.

The composition of tailings is directly dependent on the composition of the ore and the process of mineral extraction used on the ore.

Certain types of extraction process, such as heap leaching, may result in quantities of the chemicals used to perform the leaching remaining in the material once leaching has been completed. As well, older forms of mineral extraction resulted in large heaps of fine tailings being left dotted around the landscape. These tailings dumps may continue to leach residual chemicals into the environment.

Typically, the bulk quantity of a tailings product will be barren rock, crushed and ground to a fine size ranging from coarse sands down to a talcum powder consistency.

Tailings may contain trace quantities of metals found in the host ore, and they may contain minute amounts of added compounds used in the extraction process.

The negative image of mine tailings grows in spite of a sound record of environmental stewardship with mine tailings in the past twenty years.

The first paste plant built solely for the disposal of mineral tailings was constructed in 1999 and, since then, over 30 paste installations have begun operating or are in various stages of design or construction throughout the world.

PASTE APPLICATIONS

6.3TAILINGS6.2

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Backfill materials are used to fill voids in the mine which have been created by the mining excavation process. The materials normally used for backfill can either be traditional hydraulic fill materials such as tailings, sand, rock or cement or they can be a technologically progressive fill material such as paste which uses the same base materials but in a different way.

With a reduced need for barricades, drainage systems or cleanup of water slimes, and a quick setting consistency and minimal segregation, the application of a paste backfill could result in increased mining productivity and reduced operating costs as compared to traditional hydraulic fill methods.

The design of any paste backfill plant is driven by such factors as tailings material property, compressive strength required of the backfill, location of the plant with respect to targeted stopes, available static heads and horizontal distances between the plant and current and future mine workings.

The potential advantages of paste backfill over hydraulic fill include reduced binder consumption, better slimes handling, faster stope piling and curing cycle time, as well as a reduced surface disposal footprint.

Paste backfill applications have been used very successfully in the mining industry as a method of ground control and are a proven method of recovering pillars and increasing reserves. They generally require less cement than hydraulic fill to achieve the target strength, which is usually the primary contributor to the operating cost of placing backfill.

As an underground construction material in the mining industry, a well engineered paste backfill can provide:

• A floor to mine on

• A wall to mine next to

• Head cover to mine under

• Primary ground support

• A major mine waste disposal method

The benefits of utilizing paste technology in a backfill application include:

• Lower cement content

• Lower requirement for drill holes

• Utilization of surplus / waste materials readily available on site

• Complete filling of a void to the back of the opening

• Engineered achieved strengths in the paste mix design

• Flexibility in formula design for different applications

• Reduced stope cycle time

• Reduced mine dewatering costs

• Reduction of in-rush risk in the mine

The advantages of this placement method are:

• Smaller tailings / waste impoundment

• Less environmental impact and less clean-up

• Reduced risk of dam failure and the enormous financial compensation and repair work typically required (anything from $20 million to > $40 million, based on well publicized dam failures around the world)

• When combined with concurrent reclamation, acid generation can be minimised

• Reduced water management problems

• Little susceptibility to extremes in weather, such as large amounts of precipitation that can cause traditional impoundments to overflow into the local watershed

• No critical velocity in the pipeline transport of paste or risk of settling and plugging the line

In effect, the placement of the waste material as a paste involves ‘engineering’ the waste itself rather than engineering the containment facility. This shift in thinking has been prompted by changing environmental expectations that will likely continue to increase worldwide.

The disposal of mine tailings and other waste materials has historically constituted a large portion of the operating costs and potential liability risk of a mining or other processing facility. As environmental regulations in most countries become more stringent, these costs and the difficulties involved in obtaining permits have increased dramatically.

Historically, the most common method of dispo-sing of waste/tailings has been accomplished by placement in an impoundment area in a low density slurry form.

This method does still have its place in some operations; however, the cost savings that can be achieved by placing the material in a semidry state can be substantial.

Furthermore, the final reclamation costs of waste disposal sites can be enormous and the liability for this final clean-up can be significant. An effi-cient deposition and reclamation strategy has become absolutely critical to the profitability of a mining/processing facility.

Due to the shift in environmental responsibility and the subsequent increase in costs for traditional waste placement methods, alternative placement strategies are emerging that are more cost effective for meeting the environmental and regulatory requirements.

One of these alternative methods is the place-ment of the waste material in a semi-dry state as either a non-segregating thickened or paste product or a filter cake.

The potential advantages of paste backfill over hydraulic

fill include reduced binder consumption, better slimes

handling, faster stope filling and curing cycle time.

The placement of the waste material as a paste involves ‘engineering’ the waste itself rather than engineering the containment facility. This shift in thinking has been prompted by changing environmental expectations that will likely continue to increase worldwide.

SURFACE DISPOSAL

6.5PASTE BACKFILL

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Additional paste technology applications include:

• Paste technology and the development of the co-disposal of mine site waste rock (Paste rock)

• Paste technology in the development of improved methods of controlling the generation of acid from mine waste sites

• Paste technology and abandoned mine site remediation/brown field land development using local waste materials

• Paste technology in the development of waste material co-mixed for use as deposition site liners to replace geotextiles and/or clays

• Paste technology in the development of waste material co-mixes for use as waste site barrier layer / capping

• Paste technology in the development of improved methods of handling and disposal of contaminated dredged materials in populated industrial sites

• Paste technology and the co-disposal for power plant waste materials

In recent years, organizations that utilize mineral commodities such as aluminum, trona, coal and other industrial minerals in their operations have begun to utilize paste technology to engineer mineral waste management solutions.

There are many drivers causing this shift including:

• Economic concerns (Net Present Value capital, operating, closure, post-closure land use costs)

• Risk and liability issues

• Land use and land availability constraints

• Recognition of social impacts

• Surface and ground water resource management challenges

• Cost shift in environmental requirements

• Recognition of significant environmental and public safety benefits

Paste technology provides a lower risk, cost effective solution within prevailing public safety and environmental compliance standards and allows an organization to develop strategies that reduce financial and environmental liabilities.

Paste technology provides a lower risk, cost effective solution within prevailing

public safety and environmental compliance standards and allows an organization to

develop strategies that reduce financial and environmental liabilities.

OTHER PASTE TECHNOLOGY APPLICATIONS

6.7FUTURE PASTE TECHNOLOGY OPPORTUNITIES

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Many organizations, including mining companies, encounter a number of complex environmental, technical, financial and social issues regarding their waste streams.

Golder PasteTec’s™ knowledge and capabilities can resolve these issues and assist organizations to operate successfully in today’s highly regulated business environment. We offer a full range of services from mine review

and waste audits, through laboratory testing and preliminary engineering to full detailed engineering, construction management and plant commissioning and training.

Our staff possess specialized and comprehensive knowledge of the properties of mined materials and their static and dynamic behavior. They use this understanding to provide optimum paste technology solutions that are designed with specific dewatering and transport engineering methods for each material.

Construction & Operations Services – Golder PasteTec™ provides construction management, construction bid analysis, QA/QC and construction monitoring, commissioning, plant operator training, operation manual design, backfill and surface disposal system and commissioning and troubleshooting.

These groups work in conjunction with each other throughout all stages of the project life cycle.

Our team is organized into the following service groups:

Consulting Services – Golder PasteTec™ provides conceptual, pre-feasibility and feasibility level studies, optimization studies, capital and operating cost estimating, and backfill and surface waste disposal system audits. As well, we provide laboratory testing services including rheology index testing, binder strength testing, geotechnical testing, geochemical testing, underground production scale gravity flow loop testing, flow loop testing and backfill ground support testing.

Design & engineering Services – Golder PasteTec™ provides engineering services in all major disciplines (mining, instrumentation, process, civil, mechanical, electrical and struc-tural) including process flowsheet development, conceptual preliminary design, detailed engi-neering, equipment procurement assistance and vendor bid analysis.

SERVICES7.0

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The engineering designs are then optimized so that no fatal flaws are associated with the engi-neering project. These studies are completed according to international standards and are often used to obtain project financing.

The key strategic decisions at this stage of the project include whether buildings should be pre-engineered or custom designed, the final selection of instrumentation based on other control systems being utilized, and the tie-in to existing electrical systems.

The basis of Golder PasteTec’s™ design work is our laboratory testing and since the design engineers and the laboratory are located in the same office, Golder PasteTec™ staff are involved with the testing and interpretation of the results of the lab testing. This hands on approach is highly effective for design engineers and allows them to quickly obtain an intuitive feel for how the material will behave during processing.

Golder PasteTec™ can define the concepts required to progress a project through the concept, pre-feasibility and feasibility stages of the project development process.

At the concept stage, many process and material transportation options are considered. Multiple technologies, scales of production, plant site and transportation corridors are optimized using sustainability, including technical, economic and environmental / social, criteria. This typically results in two or three design options.

The design options are carried forward and refined during the pre-feasibility and feasibility stages of the project. At the completion of the feasibility study, a preferred mineral waste management strategy will have been selected, the engineering design will have been refined and will have been costed.

Golder PasteTec™ can provide backfill management plans that will detail the planning, design, operations, monitoring, measuring and review processes for the following tasks:

• Organizational structure, responsibility and accountability

• Development of a risk register – hazard identification, controls and risk assessment

• Emergency response

• Quality control

• Monitoring, measuring, review and reconciliation

• Maintenance and inspection planning

• Mix design criteria

• Bulkhead design and construction quality control

• Testing requirements in the plant, underground and in a laboratory

• Mine and plant operational practices

• Integration into tactical and strategic mine design, planning, scheduling, mining and mill operations

Backfill, in its various forms including paste, slurry and rock, involves the placement of large volumes of material that needs to be controlled within a stope boundary.

The design and implementation of a backfill management plan is essential in order to identify and manage the major hazards associated with the placement of backfill into stopes in underground mines.

The potential for high pressure and major inrush are key hazards that need to be addressed within the range of systems and controls outlined in an effective management plan.

Golder Paste Technology Ltd. (Golder PasteTec™) has the capability and experience to be able to assist with the development, review and auditing of backfill management plans in underground mines. As well, our extensive experience and knowledge allows us to provide various levels of consulting assistance to operators thus ensuring a safe and efficient backfill operation.

BaCKFILL maNaGemeNt

PLaNS

IMPROVE

PLAN

MEASURE

OPERATE

Golder PasteTec™ can define the concepts required to progress a project through the concept, pre-feasibility and feasibility stages of the project development process.

GENERAL CONSULTING SERVICES

7.1BACKFILL MANAGEMENT PLANS

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material availability and/or waste management economics. The objective is to design a cost effec-tive backfill mix that will optimize the chosen materials providing reliable underground dis-tribution, minimal binder consumption and sufficient ground control.

etc. Mine geometry, mining methods, mill layout and related materials location including tailings pond, alluvial deposits and waste rock dump will all be reviewed. Suitable quantities of the different waste materials can be collected for later laboratory evaluation.

Golder PasteTec™ can perform system analysis and design complete transportation systems for tailings transportation which will include analysis of and sourcing of equipment (including belt conveyors, stackers, hoppers, feeders, transfer towers, piping systems and pumps), conduct flow loop testing, analytical pressure modelling, life cycle costing and contingency planning dealing with secondary spill containment.

The selection of the transportation method is an integrated decision involving:

• The capital and operating cost of the system

• The demands placed on the system – volume, rate, head, distance

• The pumping system required – conventional centrifugal pumping or positive displacement pumping

• The environmental limitations of the Tailings Storage Facility (TSF)

backfill quality and subsequently reduce costs. This can often be completed with minimal additional capital expenditure. In some cases, a larger review can incorporate a change in the waste management program, reducing acid mine drainage for example, or minimizing the mine’s liability with respect to its waste management.

Based on the information obtained from a site visit or from information supplied by the mine (waste material size distribution and mineralogical and chemical composition), Golder PasteTec™ will define a backfill mix design. The mix design is dependent on the backfill method (rock, slurry or paste) chosen by the mine or dictated by

To ascertain the availability of backfill materials and to complete the preliminary process evalu-ation, a site visit is usually appropriate to define the waste materials available to the mine site for use as backfill (rock, hydraulic slurry or paste fill). Golder PasteTec™ considers the mine tailings, alluvial sand, gravel, mine waste rock,

The successful transport of paste fill is very dependent on the quality of the paste. It must contain the correct mixture of tailings, cement binder and water components that must be uniformly mixed, free of lumps and at the speci-fied slump. As well, the proper delivery system, using either gravity mode, pumped mode or a combination of both modes of transport, must be employed.

Virtually all tailings leave the extractive process in a slurry with the dry exceptions being gypsum (fertilizer industry – tailings sized crystals) and ash (power stations – fly and bottom ashes).

Defined as a non-segregating slurry, paste moves through a pipeline as a plug flow, exiting the line not as a liquid but as a semi-solid resembling toothpaste. Its characteristics can be engineered to meet a wide range of considerations and circumstances.

Backfill technology is continually improving and existing underground backfill and surface waste disposal systems at a mine site can benefit from a review to evaluate the efficiency based on production, waste management and long-term liability to the mine. Golder PasteTec™ will provide recommendations to improve the

for underground gravity transport/pumping as a hydraulic slurry or paste fill. Similar tests can be conducted to determine the transport properties of a given waste material for surface disposal.

The specific rheology of the backfill materials (tailings, waste rock, etc.) will be characterized using laboratory index tests developed by Golder PasteTec™. The index tests will be used to define the potential backfill materials suitable

BACKFILL MIx DESIGN

BACKFILL AND SURFACE WASTE DISPOSAL SYSTEM AUDIT AND OPTIMIzATION

7.1.3

MINE SITE BACKFILL MATERIALS SURVEY

7.1.2TAILINGS TRANSPORTATION

7.1.5

7.1.4RHEOLOGY INDEx TESTING

7.1.6

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used to evaluate the ground support properties of the material and thus determine, through analytical and numerical analysis, if the fill material can provide the strength required by the given mining situation.

Similar test work can be conducted to evaluate efficiently the use of different types of binder, backfill materials and/or backfill methods for a specific mine site. Strength tests can also be conducted to determine the binder concentration required to ensure stable surface waste disposal sites for a certain site geometry.

The test work requires up to 10 m3 of material which is prepared to the relevant pulp density or slump consistency then fed through a pump and circulated through the instrumented flow loop at varying flow rates. The data logged pressure drops per length of pipeline, for a given diameter pipeline at the different flow rates, are analyzed and an average pressure loss per length can be determined for the tested material. The results of the analysis will be used to confirm the labo-ratory characterization of the material obtained from the laboratory rheology index testing and to design the distribution system.

Many paste properties are influenced by the mineralogical and chemical make-up of the tailings. In addition, more specifically for surface disposal, leachate quality and acid generating potential need to be determined.

The geo-mechanical properties of a given mine fill material (rock, hydraulic slurry, or paste fill) can be determined from the triaxial compressive testing of backfill cylinders. Porosity, Young’s modulus, Poisson’s ratio and stiffness of the fill material at different confining pressures will be determined by this test work. These data can be

For surface disposal, Golder PasteTec™ conducts a series of tests to determine the properties of the material once placed on surface. These include tests specifically developed to assess the change in material characteristics of the tailings (such as density, moisture content, sedimentation and permeability) when deposited.

Golder PasteTec™ can provide testing for potential mine backfill materials at the mine site using an existing or simulated production scale underground gravity flow borehole/pipeline system. This testing is conducted to produce more precise pressure loss data with which to design a given underground borehole/pipeline distribution system for hydraulic slurry or paste backfill.

Golder PasteTec™ can conduct binder strength tests for a given backfill method. The materials are tested using a specific binder (Portland cement, fly ash and slag cement). Test cylinders are cast (diameter to accommodate the given fill material particle size, usually 4μ) to develop a uniaxial compressive strength versus binder content relationship. Through the use of the Golder PasteTec™ backfill database and analytical and numerical analysis, the required backfill strengths for a specified backfill performance (i.e. cut & fill mucking floor, self-supporting backfill head cover, free standing wall height, etc.) can be optimized for a given mining geometry.

Surface flow loop testing to determine the rheological properties of a hydraulic slurry or paste material (75 to 85 wt% solids) can be performed by Golder PasteTec™ using one of several test systems available at our laboratory or directly at the mine site.

These tests, which can be performed in a 4”, 6” or 8” diameter pipeline system, can be conducted for underground backfill or surface waste disposal materials. The data collected is essential for the engineering design of the surface disposal pumping/pipeline system or borehole/pipeline underground gravity flow distribution system.

Golder PasteTec™ can provide testing for potential mine backfill materials

at the mine site in an existing or simulated production scale underground gravity flow

borehole/pipeline system.

GEOCHEMICAL TESTING

BINDER STRENGTH TESTING

SURFACE PUMP LOOP RHEOLOGY TESTING

7.1.10

BACKFILL GROUND SUPPORT TESTING

7.1.8

GEOTECHNICAL TESTING

7.1.9UNDERGROUND PRODUCTION SCALE GRAVITY FLOW TESTING

7.1.12

7.1.7

7.1.11

28 29

Golder PasteTec™ provides full Engineering, Procurement, Construction Management (EPCM) services. Golder PasteTec™ has been performing EPCM on paste backfill and surface disposal projects for many years and as a result, has an experienced staff that have performed EPCM for a large number of projects.

Golder PasteTec™ is committed to the continuous improvement of its engineering designs and services. Our detailed engineering staff are involved in the project from the engineering phase through to construction management and commissioning. This methodo logy has been highly successful since lessons learned during construction and commissioning can be incorpo-rated into the design phase of the next project.

Conceptual design and preliminary engineering can provide process flow sheets, general arrange-ment drawings, major equipment lists and the development of ±40% order of magnitude capital and operating cost estimate. The specifics of the designed system are contingent on the outcome of the aforementioned test work. However, should the test work not be completed, Golder PasteTec™ will develop a system for completion of preliminary engi neering based on a list of assumptions neces-sary to address all uncertainties.

Flow sheets will include preliminary solids and water balance, capacities, rates, and overall system configuration. Preliminary general arrange-ment drawings showing equipment layout in the existing or new building and a summary of required services for the plant operation will also be developed.

Golder PasteTec™ can develop a process flow sheet and provide documentation for the surface plant to manufacture a dewatered thickened paste or filtered product for backfill (rock, hydraulic fill or paste fill) or waste disposal. The proposed system will meet the operation rates that are necessary to meet the demands of the mining method and milling rate at the consistency determined by the test work.

An order of magnitude of the capital and operating costs for the above systems can be developed which shows the equipment, construction and commissioning costs. Operating manpower, scheduling and support are estimated to determine the system operating cost. The above capital costs and the operating costs can be combined to determine the life cycle cost.

Golder PasteTec™ can review, layout and conduct preliminary design of an underground borehole / pipeline or raised distribution system for placement of the fill (rock, hydraulic slurry, or paste fill) in the mine. As well, we can review, layout and provide a preliminary preliminary design of a dewatering, pump and pipeline distribution system for surface waste disposal.

Paste is highly sensitive to small changes in material characteristics or equipment performance. Most paste plants are pushing the limit for what is possible with current technology in solids liquid separation and pumping and subtle variations in the process design or control can have far reaching effects on the plant operating cost and performance.

Golder PasteTec™ can provide:

• Flow sheets and mass balances

• Piping & instrumentation drawings and control systems design

The flow sheets will include distribution system pipeline diameter, pipeline material selection, operating pressures, discharge configuration, pre-discharge site preparation and overall system configuration. The development of preliminary general arrangement drawings show overall layout and a summary of required services for the distribution system operation.

Golder PasteTec™ is committed to the continuous improvement of its engineering designs and services.

7.3DETAILED ENGINEERING

DESIGN & ENGINEERING (PRELIMINARY & DETAILED)

BACKFILL AND SURFACE DISPOSAL PRODUCTION SYSTEMS

7.2.1

CAPITAL AND OPERATING COST ESTIMATE

7.2.3

BACKFILL AND SURFACE DISPOSAL DELIVERY SYSTEMS

7.2.2PROCESS7.3.1

30 31

We can provide:

• Equipment layout plans, sections

• Equipment 3D layouts

We can provide:

• Hydraulic modelling

• Piping plans and sections

• Piping Isometrics and bill of materials

• Piping and valving specifications

• Piping support design

• Equipment specifications

• Tank and hopper design

• HVAC system design

Working independently or in conjunction with mine personnel, we will provide the following services that will assist in completing the project on schedule and within budget:

• Cost tracking and reporting

• Schedule tracking and reporting

• Cost and schedule forecasting

• Contract management

• Concrete and rebar design

• Structural steel design for buildings, platforms, stairs and supports

• Equipment specifications

• Cable layouts and schedules

• MCC and transformer specification and layouts

• Motor and instrumentation schematics

• junction boxes and control panel design

• Grounding and lighting

Equipment layout is another key facet of paste system design. Paste is frequently a challenging material to handle since it is sticky and viscous and prone to buildup and plugging. Golder PasteTec™ has extensive experience regarding how paste equipment must be assembled to make the operation and maintenance efficient and operator friendly.

The correct piping design is important to avoid line sanding, plugging, premature wear or hammer of in plant piping and underground/surface disposal paste distribution systems. Golder PasteTec™ performs its piping design using 3D design software to enable better visualization and avoid interferences.

The correct specification of mechanical equipment is key to obtaining a well functioning paste plant. Golder PasteTec™ has established relationships with numerous industry-leading equipment vendors in order to obtain equipment with superior performance. We can provide:

Golder PasteTec™ can work independently or in conjunction with mine personnel to effec-tively manage the following aspects of the procurement process:

• Identify and qualify suppliers and contractors

• Prepare tenders for equipment, materials and labour

• Bid analysis

• Contract preparation

• Delivery scheduling & expediting

• Cost and Schedule Control

Concrete foundations for equipment and structures, steel or concrete buildings, platforms, stairs and supports are required for a paste system. Designs can range from simple building and equipment foundations to more complicated seismic and dynamic stability analysis. Golder PasteTec™ has substantial experience in the design of all the types of structures required for a paste plant including:

Golder PasteTec™ can perform full service electrical engineering for paste systems including:

GENERAL ARRANGEMENT

PIPING

CIVIL/ STRUCTURAL

ELECTRICAL/ INSTRUMENTATION

7.3.2 7.3.5

MECHANICAL7.3.4

PROCUREMENT7.3.7

7.3.3 7.3.6

The correct specification of mechanical equipment is key to obtaining a well functioning paste plant.

32 33

Golder PasteTec™ can provide Construction Management and Commissioning services for the paste systems that it designs. Construction Management can range from simple technical support and QA/QC to full support with all the management, supervision, procurement, scheduling, loss control, field engineering and administration required.

Our group of Construction Managers and Superintendents provide the vital link between our design teams and the plant constructors. We are one of the few firms that can offer surface and underground capabilities and can see the project through from the tailings pump box to the underground stope.

In some cases, we have provided full Construction Management services for our custom-designed paste plants. In other cases, where our client may have had their own team in place, we have supplied Construction Monitoring services to ensure the design intent of our paste engineers was maintained.

We have the field experience to provide site audits, maintenance inspections and troubleshoot other plants that may not be operating as they should be. Our team regularly conducts equipment inspections, HAzOP reviews, cost/schedule control, QA/QC, design and constructability reviews.

Golder PasteRock™ is a new method for the disposal of tailings and waste rock that involves full blending of the two materials to a specified mix design followed by deposition of the material in a single repository.

Conventional mine waste management systems produce both wet and dry waste streams. The wet tailings stream is commonly discharged as slurry that produces a segregated deposit with pro-blematic drainage and seepage conditions, low shear strength and slow consolidation properties.

Impoundment design for slurry tailings is generally controlled by physical issues. The primary design philosophy is capacity, stability, containment and safety. However, numerous failures in tailings impoundments have occurred in recent times and it can be broadly stated that the primary concerns with tailings impoundments remain rooted in physical instability.

In contrast, the dry waste rock stream offers high shear strength with excellent physical stability characteristics and thus the material is routinely disposed of in large waste rock dumps constructed above the natural ground surface. While run-out failures in high, over-steepened dumps may occur, waste rock dumps typically form steep topographies with high stability.

The hydraulic properties of waste rock together with surface hydrology, internal structure and topography result in unsaturated conditions within waste rock dumps. Waste rock dumps constructed with tip faces greater than 4 to 6 m develop an internal structure associated with segregation producing coarse and fine layers with a high permeability rubble layer at the base.

The combination of unsaturated soil conditions together with the interbedded structure creates ideal conditions for weathering of the waste rock through geochemical and biological pathways. Sulphide oxidation and acid generation often begins during the construction of the rock dumps and results in long-term acid drainage and metal leaching, or other problems associated with neutral drainage and salinity.

Reactive tailings need to be protected from oxidation and this is normally achieved through sub-aqueous disposal that inhibits oxygen contact with the tailings. However, conventional sub-aerial disposal of reactive tailings as slurry can result in segregation of the tailings which leads to accelerated oxidation causing acid generation.

Golder PasteRock™ can blend waste rock and tailings to produce an engineered material, termed paste rock, with superior physical and hydraulic properties for the construction of post mining landforms. The new material also has a density much higher than either conventional tailings or waste rock deposits; thereby reducing the total volume of waste and creating opportu-nities to reduce surface area requirements for impoundment design and construction.

In addition to the commissioning component, training can include classroom instruction and post commissioning operational training. The various parts of our training program ensure that the operators and supervisors have a clear understanding of the operational as well as the theoretical aspects of the plant and underground distribution system.

• Contractor supervision

• Equipment installation

• Contractor scheduling

• Pre-commissioning

• Reporting

The experienced Golder PasteTec™ team will take a leading, hands-on role in the successful commissioning of the plant and equipment. We will work with the mine personnel during this phase which it will serve as one of the components of the training program. The Operating Manual, which includes complete operating instructions, plant specific safety issues and emergency procedures, will be updated as commissioning progresses to maintain accuracy.

Our on-site Project Managers have extensive experience in both building and operating plants. This allows them to effectively supervise the daily on-site activities including:

Golder PasteRock™ is a new method for the disposal of tailings and waste rock

that involves full blending of the two materials to a specified mix design followed by deposition

of the material in a single repository.

ADDITIONAL GOLDER PASTETEC™ SERVICES7.57.4

CONSTRUCTION MANAGEMENT, COMMISSIONING & TRAINING

SITE MANAGEMENT

PASTE ROCK

COMMISSIONING AND TRAINING

7.4.2

7.4.1

7.5.1

34 35

Our water management and treatment services include:

• Assessment of water quality and treatment requirements

• Treatability studies

• Process development

• Pilot project completion

• Trouble shooting

• Process control and automation

• Conceptual design and detailed design

• Engineering, procurement, construction management (EPCM)

• Plant implementation and commissioning

• Staff training and creation of maintenance and operations (M&O) manuals

If required, turn-key projects and operation of treatment systems can also be provided.

The quality of water is critical when deter-mining the amount available for recycle/reuse. Wastewaters that result from operations at a mining or metallurgical site, including tailings water, drainage, and seepage water, can be alkaline or acid and may contain: salinity (e.g., anions of carbonate, sulphate, chloride, ammonium and nitrate, and cations of sodium, calcium, magnesium), suspended solids and metal ions such as iron, aluminum, manganese, zinc, nickel, copper, lead, arsenic and cyanide. Thiosalts, incomplete sulphide oxidation products that may cause delayed acidity in the receiving water reservoirs, may also be present. The quality of wastewater can vary widely depending on a number of factors such as the nature of the exposed minerals, the type of ore bodies, metallurgical processes used and climate.

The wastewater treatment services provided by Golder PasteTec™ include assessment, development, design and implementation of conventional “Best Available Economically Achievable” (BATEA) technologies as well as the use of emerging advanced technologies.

We are experts in designing and implementing chemical active treatment systems and passive treatment systems which can be used for a variety of flow rates in a variety of climates including extreme cold. Working in partnership with the water treatment services teams of Golder Associates allows us to provide a comprehensive level of service to address and identify potential issues and determine the most practical and cost-effective mitigation option for a given site.

Golder PasteTec™ provides a full spectrum of wastewater management and treatment services to mining and industrial organizations around the world.

Water is essential for mining and hydrometal-lurgical processes. However, the management of the water that results from the dewatering of tailings and disposal / storage of tailings and wasterocks often poses a major techno-logical, environmental, social and economic challenge to the mining and mineral processing industry worldwide

Golder PasteTec™ works with our clients to: reduce water use; prevent/minimize sources that can impact water quality; increase water recovery, reuse and recycle; and meet or surpass the regulated objectives for water discharge. As clean and potable water resources become scarce in the world, especially in Europe, Africa and Australia, water is rapidly becoming consi-dered as a commodity. Thus, the optimization of a dewatering process makes a mining project economically viable as it will reduce the immediate and long-term environmental liabilities. In fact, many government bodies are stressing the impor-tance of improved water use and are making this aspect of mining operations a stipulation of the permitting process.

By recovering the water from tailings and other waste products such as sludge, processing it and recycling it back into the mining and metallurgical processes, many mandated environmental, social and economic sustainable development require-ments are achieved. The effective dewatering of tailings and sludge also reduces the foot print of the disposal/storage area. In addition, water reuse reduces the ever-increasing need for addi-tional fresh water sources and can result in cost savings in a number of water management applications including environmental permitting, energy consumption, cost of equipment and water transportation.

Golder PasteTec™ is an innovation leader in the development and use of mobile paste plants which can provide a lower capital alternative to the construction of a full paste plant facility.

Our engineers and operators develop a custom process for each project and address the unique characteristics of the feed material, the site location and the underground environment.

The mobile paste plants provided by Golder PasteTec™:

• Are fully transportable

• Are quickly assembled and dismantled

• Provide production rates up to 90 m3/hr of paste backfill

• Offer pumped or gravity injected backfill delivery

• Utilize single source or multi-blend paste recipes

• Have a consistent slump, from 5 to 10-inch available

• Can vary cement content depending on recipe

Golder PasteTec™ can supply the equipment, a paste engineer and site superintendent, QA/QC services, all laboratory testing, and mining/process engineering as required. The raw materials typically belong to the client or can be locally sourced.

Golder PasteTec™ provides a full spectrum of wastewater management and treatment services

to mining and industrial organizations around the world.

Golder PasteTec™ is an innovation leader in the development and use of mobile paste plants which can provide a lower capital alternative to the construction of a full paste plant facility.

BACKFILL CONTRACTING & OPERATIONS / MOBILE PASTE PLANTS

TAILINGS DEWATERING / WASTEWATER MANAGEMENT

7.5.2 7.5.3

36 37

Golder PasteTec’s™ project management methodology focuses on following a pre-defined set of work stages that can be adjusted according to the needs of our clients.

Typically, Golder PasteTec’s™ projects will include the following stages:

1. Conceptual / Prefeasibility design – generally supported by testing

2. Testing and Material Characterization • Indextesting,rheology,strength

testing, sedimentation testing, settling characteristics of the tailings

• Flowlooptesting,fieldtrialsandmonitoring of placed paste

3. Feasibility and Basic Level Engineering

4. Detailed Engineering

5. Construction and Commissioning

6. Monitoring and Optimization

•MaterialCharacterizationTesting – size distribution – mineralogy •Optimization – surface disposal – pressure gradient – underground fill – strength and cement cost •WasteWaterManagement •SurfaceDisposalRestraints – legislation – tailings area

Our phased approach to identifying, understanding and providing engineering solutions allows us to accurately forecast budgets, react to changing market conditions which may affect our client’s capital investment strategies and strategically plan each stage of the project.

8.0GOLDER PASTETEC™ PROjECT METHODOLOGY

38 39

Golder PasteTec’s™ staff are highly specialized in providing innovative solutions involving waste management dewatering, backfilling, and water treatment technologies. We have been at the forefront of the development of paste technology since its infancy and have been significantly involved with over two thirds of the paste backfill installations in operation today.

9.0PROjECT ExPERIENCE

The following project and client list provides a cross section of Golder PasteTec’s™ capabilities and experience.

This project experience list is divided into the following sections:

> EPCM or Detailed Engineering> Conceptual, Preliminary

and Basic Engineering> Flow Loop Testing> Surface Disposal> Oil Sands

40 41

New SKeeNa FOreSt PrODuCtS INC.PCB DreDGe aND DISPOSaL SyStem Location: Prince rupert, BC, Canada

Golder PasteTec™ completed a fast-track EPCM design, construction, and operated the process sorting and dewatering system for a PCB clean-up project in 2004. Marine shoreline sediments contaminated with PCB were dredged, screened, sorted and deposited in final ponds while carrier water treated in clarifier prior to release to the environment. Strict guidelines for release were dictated by Department of Fisheries and Oceans. Production rate designed for 400 m3/hr including mineral and organic solids consisting of large cobble (> 200 mm), hogfuel/woodchips (long strands to 5 mm chips), fine saw dust, stones and sediments to < 1 micron. Project capital cost was $1.5 Million.

PPL mONtaNaCOLStrIP Steam eLeCtrIC StatION Location: Billings, montana, uS

Golder PasteTec™ performed the feasibility study, pilot plant testing, flow loop, geotechnical testing, EPCM design, construction, and commissioning of a 73 tph flyash surface disposal system. The plant will reduce the amount of water in the effluent holding pond and will significantly reduce PPL’s current issues with ground water contamination and seepage from the EHP. The plant was commissioned in january 2004. Project capital cost was $11 Million.

ZarCaN INterNatIONaL reSOurCeS LtD.aGH DarreH mINe Location: Iran

Golder PasteTec™ led the EPCM design and construction of the zarcan plant, completing basic and detailed engineering, procurement assistance, construction management, and commissioning of paste pumping and distribution system, piping and instrumentation, water return systems and review of detailed engineering services in 2004. The paste plant is designed around the Dorr Oliver Eimco deep tank paste thickener, known as the Paste Preparation and Storage Mechanism, or PPSM. The paste plant will be constructed in two phases with the first to meet the production schedule of 2,000 tpd. Future production rate is to increase to 3,000 tpd, at which time the second phase will be constructed. Golder Associates also completed basic and detailed engineering of the tailings management facility. Project capital cost was $4 Million.

Great rIver eNerGyCOaL CreeK StatION Location: Bismarck, North Dakota, uS

Golder PasteTec™ performed the feasibility study, flow loop testing, geotechnical testing and completed the full EPCM design and construction of a 100 tph flyash surface disposal system in 2004. The flyash is disposed of as a high density slurry and due to its pozzalonic properties, hydrates and builds strength in less than 24 hours. The flyash disposal system will also prepare an engineered fill that will be used in the contain-ment of other plant effluents. Project capital cost was $3 Million.

Pt FreePOrt INDONeSIaBIG GOSSaN mINe Location: Indonesia

Completed feasibility and basic engineering studies prior to being awarded the EPCM for the Big Gossan Mine detailed engineering and procurement of a paste backfill system to be completed in 2009. Construction assistance is to follow. The system will include slurry pumping and pipeline from the main thickener to the planned underground paste plant to be located at the top of the orebody. Located at approximately 3,000 m above sea level, it will be the largest underground paste backfill plant in the world and one of the largest paste plants for any installation. Project capital cost is estimated at $25 Million.

GOLDCOrP CaNaDa LtD. muSSeLwHIte mINe Location: Northwest Ontario, Canada

Completed pre-feasibility study prior to being awarded the EPCM for the Musselwhite Mine. The detailed engineering of a thickened tailings surface disposal system will be completed in 2009 with construction management and commissioning extended into 2010. The system will include a flotation circuit to remove sulphides from the tailings as well as thickening of both the sulphide and de-sulpherized tailings. The system deposits the de-sulpherized tailings as paste into the current pond and the sulphides as thickened tailings into the current open pit under water cover. Located in northwest Ontario, Canada, the project will be the first surface disposal paste plant in northern Ontario. Project capital cost is estimated at $30 Million.

DIavIK DIamOND mINeS INC. DIavIK DIamOND mINe Location: Northwest territories, Canada

Completed feasibility study prior to being awarded the EPCM for the Diavik Mine, entailed engineering and procurement of a paste backfill system. Detailed engineering was completed in 2008 and construction management and commissioning will extend into 2010. The system will include a crushing plant, a grinding circuit as well as a paste plant. The system will use the local granite for backfill purposes. Located in the Northwest Territories, Canada, the project presents many challenges in meeting delivery schedules by winter road that is only open for 2 months a year. Project capital cost is estimated at $135 Million.

mINSur S.a. SaN raFaeL mINe Location: antauta, Peru

Completed paste investigation, pilot plant, flow loop testing and basic engineering. Golder PasteTec™ was awarded the EPCM contract in late 2003 as the prime consultant for project management, detailed engineering, procurement, and construction management, completed plant commissioning and training of the workforces. Located at an altitude of 4,500 m, it will be the highest and first completely underground paste plant in existence. Project capital cost was estimated at $10 Million.

FaLCONBrIDGe LImIteD KIDD CreeK mINe Location: timmins, ON, Canada

Golder PasteTec™ completed extensive testing and preliminary design effort, followed with basic engineering, led the detailed engineering design and construction, and conducted the commissioning and training. Golder PasteTec™ also set up a QA/QC monitoring program for the paste backfill plant that combines tailings, alluvial sand and waste rock to provide a high-strength, low-cost backfill for the 8,000 – 10,000 ft deep mine. The EPCM for the extensive underground distribution system was also conducted by Golder PasteTec™. Project capital cost was $35 Million.

ENGINEERING, PROCUREMENT, CONSTRUCTION MANAGEMENT (EPCM) / DETAILED ENGINEERING PROjECTS (SURFACE AND UNDERGROUND)

9.1

42 43

BHP wOrLD mINeraLSCaNNINGtON PaSte PLaNt Location: Queensland, australia

Completed paste investigation, flow loop testing and preliminary engineering before the award of the EPCM contract in late 1996. Golder PasteTec™ was the prime consultant for the detailed engineering and provided all flow sheets, piping details, equipment specifications and layout in addition to the project management during the construction and commissioning of the plant. The plant was successfully commissioned in November 1997 and training of personnel was completed by February 1998. Project capital cost was $7 Million.

aGNICO-eaGLeLarONDe mINe Location: Quebec, Canada

Golder PasteTec™ performed laboratory testing and flow loop testing as well as EPCM design, construction, and commissioning for the paste backfill underground distribution system at Laronde Mine. The distribution system included two 900 m boreholes and special high strength casing. Project capital cost was $2.5 Million.

GOLDFIeLDS LtD.HeNty mINe PaSte PLaNt Location: tasmania, australia

Henty Gold commissioned a paste plant in 1996, but the pumping system did not work as specified, rendering the cement addition and underground distribution system unusable. Golder PasteTec™ was retained to review the system and managed the paste system from August 1997 until August 1998. Golder PasteTec™ was heavily involved in the EPCM design of the plant expansion. Project capital cost was $5 Million.

BarrICK /KaHama GOLD COrP.BuLyaNHuLu GOLD PrOJeCt Location: tanzania, africa

Golder PasteTec™ worked with SNC-Lavalin to complete the EPCM design, construction, and commissioning of a 180 tph batch paste plant which will have the capability to dispose of tailings underground as backfill or on surface in a ‘stacked’ paste form. Golder PasteTec™ performed the process and geotechnical design and SNC-Lavalin provided the structural, civil, electrical and instrumentation packages. Golder PasteTec™ performed the commissioning and training for the first year of production. Golder PasteTec™ completed a full EPCM for the underground distribution system, which utilizes gravity to feed all areas of the mine. Construction and commissioning of the plant was completed in March 2001. Project capital cost was $7 Million.

PLaCer DOmeCamPBeLL mINe Location: red Lake, ON, Canada

After completing laboratory testing, flow loop testing and preliminary engineering throughout 1997, Golder PasteTec™ completed the EPCM design, construction, and commissioning for the paste plant while working with SNC-Lavalin’s Vancouver office in the fall of 1998. Golder PasteTec™ completed the underground distri-bution system design, assisted with construction and commissioning and jointly produced the operating manuals with the client. Project capital cost $7 Million.

rIO tINtO ZINKGruvaN mINe Location: Zinkgruvan, Sweden

Golder PasteTec™ performed an initial study and the EPCM design, construction, and commis-sioning of a 90 tph (expandable to 135 tph paste backfill plant). Skanska/ABB was subcontracted by Golder PasteTec™ to complete the civil/structural and electrical design. The underground distribution system engineering was completed by Golder PasteTec™. Construction of the surface plant, boreholes and underground piping was completed in early 2001. Commissioning and operator training was completed in April 2001 and the plant is currently producing paste at its present designated capacity of 90 tph paste backfill. Project capital cost $6 Million.

GOLDCOrP INC reD LaKe mINe Location: red Lake, ON, Canad

Golder PasteTec™ performed an initial study and lead the EPCM design, construction, and commissioning of a 50 tph paste backfill plant. Hatch-Rescan was subcontracted by Golder PasteTec™ to complete the civil/structural and electrical design. Golder PasteTec™ also completed the EPCM for the underground distribution system. Construction of the surface plant, boreholes and underground piping was completed in September 2000. Commissioning and operator training was completed in October 2000 and the plant is currently producing paste at full capacity. Project capital cost was $5 Million.

INCO LImIteD GOrO NICKeL PrOJeCt Location: Brisbane, australia

Golder PasteTec™ was involved on the Goro Nickel Project engineering of this world-class project. Golder PasteTec™ performed the conceptual study, basic engineering and detail design phases of the system for the production of thickened tailings and the disposal pipeline system; included are the associated handling of water, and basic engineering of the fresh water supply system. The large scale tonnage required engineering/design involving state-of-the-art dewatering technology with thickeners and the use of very high capacity positive displacement pumps.

KeNNeCOtt mINeraLSGreeNS CreeK mINe Location: Juneau, alaska, uS

Golder PasteTec™ performed the feasibility study, EPCM detailed engineering, design, and commis-sioning of an 84 tph paste backfill plant and underground distribution system. The plant complemented an existing batch plant which prepared low moisture content cemented tailings. The cemented tailings were trucked to the new underground paste plant, remixed to a paste consistency and pumped to both longhole and cut-and-fill stopes. The underground distribution system is composed of 8” and 6” piping and fully cased boreholes. Commissioning was completed in May 2002. Project capital cost was $6 Million.

CBICayeLI PaSte PLaNt Location: rize, turkey

Golder PasteTec™ completed on-site flow loop testing and preliminary strength work on the paste backfill for CBI in 1996. The project moved forward and Golder PasteTec™ was awarded the EPCM contract in the fall of 1997. Detailed engineering for the 90 tph paste plant was followed by successful commissioning in May 1999. Golder PasteTec™ has provided the construction management, commissioning and training of operating staff in Turkey. Project capital cost was $6 Million.

CaraIBa PaSte PLaNtmINeraCaO CaraIBa Sa Location: Bahia, Brazil

After laboratory testing, on-site flow loop testing and a feasibility study comparing paste and rock fill, Golder PasteTec™ was awarded the EPCM contract in the summer of 1997. Detailed engineering for the 186 tph paste plant was followed by successful commissioning in October 1998. Golder PasteTec™ has provided the construction management, commissioning and training of operating staff in Brazil. Project capital cost was $6 Million.

9.1 EnginEEring, ProcurEmEnt, construction managEmEnt (EPcm) / DEtailED EnginEEring ProjEcts (surfacE anD unDErgrounD) (cont’D)

44 45

Golder PasteTec™ has provided numerous clients with preliminary engineering or feasibility studies into the use of paste technology at their properties. The purpose of these studies range from conceptual studies all the way to bankable feasibilities and basic engineering.

Studies typically include lab testing, flow loops and pilot plant work, flowsheets, general arrange-ment drawings, design criteria formulation, cost estimates, equipment specifications, geotechnical and/or rock mechanics.

A cross section of projects are listed below.

• Mineras Aguas Teñidas SAU, Spain• BHP Escondida, Chile• Codelco Norte, Talabre Tailings

Impoundment, Chile• Newmont/Yanacocha Conga Project, Peru• Prairie Creek, Canadian zinc, Canada• Nico Mine, Fortune Minerals, Canada• Cerro Matoso, BHP Billiton, Colombia• BHP Billiton, Diavik Diamond Mine, Canada• Coeur D’Alene San Bartolome, Bolivia• CVRD Taquori-Vasouras, Brazil• ALCOA Alumina SA, Brazil• MBR Vargem Grande, Brazil• Omya, Vermont, USA• Cambior Camp Caiman, French Guyana• Newmont Yanacocha Gold Mill, Peru• Breakwater Myra Falls, Canada• PT Freeport Indonesia, Indonesia• Newmont Yanacocha Minas Conga, Peru• Mauro, Las Pelambres, Chile• Quebrada Seca, Las Pelambres, Chile• Cuiaba Mine, AngloGold, Brazil• Tanadua Mine, MBR, Brazil

> Ivanhoe Turquoise Hill, Mongolia> Cambior Camp Caiman, French Guyana> Newmont Minas Conga, Cajamarca, Peru> Las Cenizas, Chile> Coal Creek Station, Great River Energy,

North Dakota, USA> Kidd Creek, Falconbridge Limited,

Ontario, Canada> San Rafael Mine, Minsur S.A., Peru> Colstrip Steam Electric Station,

PPL Montana, USA> Mountain Pass Mine, Molycorp,

California, USA> CE zinc, Noranda, Quebec, Canada> T.G. Soda Ash, Wyoming, USA> Bell Allard, Noranda, Quebec, Canada> Doyon Mine, Barrick Gold, Quebec, Canada> Grevet Mine, Cambior Inc., Quebec, Canada> Ruttan Mine, Hudson Bay Mining

& Smelting Co., Manitoba, Canada> Cannington Mine, BHP, Australia> Laronde Mine, Agnico Eagle, Quebec, Canada> Kensington Mine Project, Coeur D’Alene,

Alaska, USA> Bakyrchik Mine, Bakyrchik

Mining Venture, Kazakhstan> Caraiba Mine, Mineraçao Caraiba, Brazil> Neves Corvo Mine, Somincor, Portugal> Cayeli Mine, Cayeli Bakir Isletmeleri, Turkey> Copper Rand, MSV Resources,

Quebec, Canada> Brunswick Mine, Noranda Mining

& Exploration, New Brunswick, Canada> Stillwater Mine, Stillwater Mining Company,

Montana, USA> Campbell Mine, Placer Dome,

Ontario, Canada> Myra Falls Operations, Boliden-Westimin,

British Columbia, Canada> Bulyanhulu Gold Project, Sutton Resources

Flow loop tests are carried out to determine the pipeline friction losses for a given material at various flow rates and paste consistencies. Typically, flow loops are carried out at the mine site by assembling a temporary loop of pipe. Golder PasteTec™ coordinates the design and set-up of the flow loop and carries out the pipeline pressure monitoring in real time with the use of a data-logger and pressure transducers. The results of the flow loop test are used in the design of the underground or surface distribution system. The following is a cross section of flow loop projects carried out by Golder PasteTec™.

• Las Cenizas, MLC, Chile• Alhue, MLC, Chile• San Rafael Mine, Minsur, Peru• Mountain Pass Mine, Molycorp, California• Goro Nickel Project, INCO, New Caledonia• Olympias Mine, TVx, Greece• Vazante Mine, CMM, Brazil• Bulyanhulu, Sutton Resources, Tanzania• Campbell Mine, Placer Dome,

Red Lake, Ontario• Stillwater Mine, Stillwater

Mining Company, Montana• Chimo Mine, Cambior Inc., Quebec, Canada• Bouchard Hebert Mine, Cambior Inc.,

Quebec, Canada• Lockerby Mine, Falconbridge Limited,

Ontario, Canada• Laronde Mine, Agnico Eagle, Quebec, Canada• Mount Isa Mine, MIM, Australia• Cannington Mine, BHP, Australia• Kensington Mine Project, Coeur D’Alene,

Alaska, USA• Brunswick Mine, Noranda,

New Brunswick, Canada• Bakyrchik Mine, Bakyrchik

Mining Venture, Kazakhstan• Caraiba Mine, Mineraçao Caraiba, Brazil• Cayeli Mine, Cayeli Bakir Isletmeleri, Turkey• Copper Rand, MSV Resources,

Quebec, Canada• Forteleza Mine, RTz Consultants, Bristol, UK• Neves Corvo, Somincor, Portugal• Myra Falls Operation, Boliden-Westmin,

B.C., Canada• Kidd Creek Mine, Falconbridge Limited,

Ontario, Canada• Las Cruces Project, Rio Tinto, Spain

Golder PasteTec™ has provided numerous clients with preliminary engineering or feasibility studies

into the use of paste technology at their properties. The purpose of these studies range from conceptual

studies all the way to bankable feasibilities and basic engineering.

FLOW LOOP TESTING

9.1.2CONCEPTUAL, PRELIMINARY AND BASIC ENGINEERING

9.1.1

46 47

BuLyaNHuLu GOLD PrOJeCt

This project for Barrick Gold involved Golder PasteTec™ working with SNC-Lavalin to complete the detailed engineering of a 180 tph batch paste plant which will have the capability to dispose of tailings underground as backfill or on surface in a ‘stacked’ paste form. Golder PasteTec™ performed the process and geotechnical design and SNC-Lavalin provided the structural, civil, electrical and instrumentation packages. Golder PasteTec™ designed the underground distribution system, which utilizes gravity to feed all areas of the mine. Construction and commissioning of the plant was completed in March 2001.

rOCK CreeK, mONtaNa, uSa

This Asarco project was one of the first full-scale feasibility studies completed on the use of paste for surface disposal. A 10,000 tpd Copper project was investigating the potential for alternative tailings management schemes and detailed cost estimates were made based on paste technology and traditional sub-aqueous disposal methods. Laboratory testing was followed by field trials on the behavior of the material when placed on surface and included leachate collection and trafficability.

The results showed that the capital cost of the project could be significantly reduced through the use of paste technology although the operating costs of the paste option resulted in a slightly higher Net Present Cost for the paste option over the projected 30 year mine life.

uS BOraX, BOrON, CaLIFOrNIa, uSa

This study was performed to determine long-term disposal options for Borax’s waste material. The study involved the removal and relocation of solids from the plant waste ponds to an alternate area. Golder PasteTec™ attempted to reduce the costs and improve operations by limiting additional ponds. The removed solids would be pumped as thickened slurry to an alternate deposition area, where they would ideally desiccate with minimal water bleed. Several options were produced for transporting and storing the solids and the most suitable method was a mobile mixing/pumping method.

tHree SISterS PrOJeCt, CaNmOre, aLBerta, CaNaDa

This project involved work between Golder PasteTec™ and Golder Associates Ltd. (GAL – Calgary). Golder PasteTec™ excavated coal spoils and other waste materials over a three-year period for disposal underground. The waste material was thickened into a paste, mixed with cement and inserted underground into abandoned coal mines. The goal of this project was to stabilize the old coal mines so that houses could be built on the land and also allowed for the disposal of the coal spoils underground.

SKeeNa PrOJeCt, PrINCe ruPert, BrItISH COLumBIa, CaNaDa

A PCB dredge and disposal system was designed and built by Golder PasteTec™. Golder PasteTec™ completed a fast-track design/build/operate project for a PCB clean-up project in Prince Rupert, BC. Marine shoreline sediments contaminated with PCB were dredged, screened, sorted and deposited in final ponds, while carrier water was treated in clarifier prior to release to the environemnet. Strict guidelines for release were dictated by the Department of Fisheries and Oceans. Production rate designed for 400 m3/hr included mineral and organic solids consisting of large cobble (> 200 mm), hogfuel/woodchips (long strands to 5 mm chips), fine saw dust, stones and sediments to <1 micron.

COLDStrIP POwer StatION, BILLINGS, mONtaNa, uSa

This project in Billings, Montana was conducted for PPL Montana. Golder PasteTec™ performed the feasibility study, pilot plant testing, flow loop, geotechnical testing, detailed engineering and is currently finishing construction of a 73 tph flyash surface disposal system. The plant will reduce the amount of water in the effluent holding pond and will significantly reduce PPL’s current issues with groundwater contamination and seepage from the EHP.

muSSeLwHIte mINe, NOrtHweSt ONtarIO, CaNaDa

This project involves the removal of sulphides from the tailings via a flotation circuit. The sulphides would be removed, thickened and deposited in the existing open pit under a water cover to prevent acid generation. The de-sulpherized tailings will be thickened and deposited in the existing tailings pond. The thickening of the tailings will increase the life of the tailings pond for the life of the mine.

SURFACE DISPOSAL PROjECT ExPERIENCE

9.2

48 49

GreeCe PrOJeCt

At the request of the client, Golder PasteTec™ investigated the use of paste for surface disposal at a gold project located in Northern Greece. A conceptual design was proposed that reduced the footprint of the facility, reduced the volume of the containment facility and greatly reduced the reclamation costs for a relatively short-term project. Favourable geometry indicated savings of 20% over the cost of a traditional impoundment.

SaN BartOLOme PrOJeCt

This project for Empresa Minera Manquiri S.A.involved Golder PasteTec™ working with Fluor Inc. to complete the detailed engineering of a 300 tph surface disposal paste pipeline and pumping system, which will have the capability to transport paste through a long pipeline via pumping. The pumps were designed to overcome a 20% incline to reach the final deposition area. Golder PasteTec™ performed the process and transport system design and Fluor Inc. provided the structural, civil, and electrical packages. Golder PasteTec™ designed the paste pipelines.

eSCONDIDa PrOJeCt

Studies were completed for Minera Escondida TDA regarding the multiple options available for the tailings disposal of 240 ktpd at the Laguna Seca Tailings Management Facility (TMF). The options which were assessed included high compression thickening, paste thickening, vacuum filtration, pressure filtration and the combination of thickening and filtration dewatering methods. The transportation methods studied included hydraulic transportation by centrifugal or positive displacement pumps and mechanical transportation using belt conveyors. Due to the extreme climate of the area, water conservation and maximum water recovery from the slurry tailings stream was a key driver for the completion of these studies.

CODeLCO NOrte, CHILe, SOutH amerICa

Studies were completed for Codelco Norte in Chile regarding the high compression thickening and tailings disposal of 230 ktpd at the Talabre Tailings Management Facility (TMF). The goal of these studies was to identify the options available which would maximize the tailings storage capacity at the existing TMF. A variety of equipment, storage locations and processes, including centrifugal slurry pumping, were assessed. As well, consideration was given to the option of maintaining the tailings thickening operation at the mill as an alternative to conducting thickening at the TMF area only.

Golder PasteTec™ has also applied our dewatering and pumping experience to the fine tailings challenges experienced in the oil sands industry. Our engineers and technicians have worked at a grassroots level to understand the physical and chemical relationships that cause these fine tailings to exhibit their hydrophilic characteristics and unstable deposition properties.

Our projects have provided extensive laboratory testing, field pilot studies, pre-feasibility level designs and cost estimates to support our client’s initiatives for improved tailings deposition performance, better water recycling and accelerated closure.

SuNCOr eNerGy

PrOJeCt: Pre-Feasibility Study on applying Paste technology to Oil Sands tailings management

Golder PasteTec™ investigated whether paste technology could be applied to Suncor Energy’s tailings fines and, if so, would the application translate into the benefits currently being realized with paste in other mineral processing industries (e.g. reduced water consumption, improved deposition angles and densities, etc.).

The project included a site visit, several presentations to the client, extensive labo-ratory testing on NRU and flotation tailings, a conceptual flowsheet design, plant layouts and capital and operating cost estimates to allow the client to make an informed decision on this tailings technology.

SyNCruDe CaNaDa LtD.

PrOJeCt: Paste technology Services for Surface waste Disposal

Golder PasteTec™ investigated the application of paste technology as one possible solution towards the surface disposal of Syncrude’s tailings waste stream. Advancements in dewatering technology and successes on similar projects indicate the technology may be suitable to Syncrude’s challenges by improving water recovery, increasing the placement densities and decreasing disposal area footprints.

9.2 Surface DiSpoSal project experience (cont’D)

Golder PasteTec™ has also applied our dewatering and pumping experience to the fine tailings challenges experienced in the oil sands industry. Our engineers and technicians have worked at a grassroots level to understand the physical and chemical relationships that cause these fine tailings to exhibit their hydrophilic characteristics and unstable deposition properties.

9.3OIL SANDS PROjECT ExPERIENCE

50

Only ten years ago, the use of paste technology as waste management streams was considered by many to be an unrealistic option as paste was thought to be a high risk and high cost option.

Today, we find a different context for waste management solutions, one where sustainability drivers such as environmental (eg. water supply, environmental impact) and societal considerations are critical elements of every project whether in the design, operations, or closure stage of its life cycle.

The innovative solutions offered through paste technology make the best use of our natural resources and minimize the footprint of mineral waste operations. Paste technology provides real and tangible benefits to clients in cost reduction and permitting, builds trust within the local communities, and ultimately offers a strategic competitive benefit.

We remain:

“Your trusted global partner providing innovative engineering design and project delivery solutions with expertise focused on

dewatering & treatment, material characterization, handling and transport of mineral waste.”

GOLDER PASTETEC’S™ FUTURE

10.0

golder pastetec corporate profile[1]

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