Conceptual Mining Model(1,2,3) for the New PEA (diluted)
The conceptual mining model uses a design cut-off grade of 5.0 g/t Au and will potentially extract 78% (by ounces) of the mineral resources reported in Table 2. The stope outlines (greater than 5.0 g/t Au) include inherent internal dilution of approximately 26% derived from areas contained within the block models. An average external dilution of 15% grading 0.68 g/t Au was applied with higher than typical external dilution grade resulting from the disseminated nature of the gold mineralization. The resulting tonnes delivered to the mill, after application of dilution and appropriate conceptual mining losses, are 9.13 million grading at 8.1 g/t Au for a total of 2.37 million ounces (an increase in total ounces of 18% compared to the 2011 PEA).
The New PEA considers the development of the F2 Gold System as a potential underground mine using methods that are significantly different to those modeled in the 2011 PEA. The new primary planned method is longhole stoping utilizing paste backfill. It is intended that the longhole method will comprise 90% of the total mining with 10% cut-and-fill. Approximately 76% of the longhole tonnage will come from stope widths greater than 5 m (56% of LOM tonnage). Please see Figure 2 at the end of this release for a cross section of the conceptual mine plan. Please see Figure 3 at the end of this release for the potential production and cash flow schedule.
Readers are cautioned that the mining model, projected mining method, potential production profile and plan and mine plan referred to in the New PEA and this release are conceptual in nature and additional technical studies will need to be completed in order to fully assess their viability. There is no certainty that a potential mine will be realized or that a production decision will be made. A mine production decision that is made without a feasibility study carries additional potential risks which include, but are not limited to, the inclusion of inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mine design and mining schedules, metallurgical flow sheets and process plant designs may require additional detailed work and economic analysis and internal studies to ensure satisfactory operational conditions and decisions regarding future targeted production.
Development and Infrastructure
The main underground levels are planned to be spaced nominally 60 m apart with sublevel spacings between 15 m and 30 m depending on width of target gold mineralization and access method selected. The main levels are planned to be connected by a series of ramps for the efficient movement of equipment, material, and personnel between levels. Material is planned to be transferred between levels by gravity through internal ore passes to the 610-metre level, where rail units are planned to haul this material to an ore pass dump. From here, the material is planned to be crushed and conveyed to the loading pocket at the 680-metre elevation. The crushed material will then be hoisted to surface via 10-tonne skip for processing at the mill.
The current shaft will be deepened to the 710-metre level. The shaft will later be extended from the 710-metre level to the 1,400-metre elevation (shaft bottom) utilizing a concrete circular configuration which is designed to best address a wide range of ground conditions. The 1285-metre level will be the main haulageway for material mined below the 610-metre level. Hoisting will be via 16-tonne skips from a loading pocket on the 1360-metre level. There is no planned interruption to mining activities in the upper levels. The second phase of sinking is planned to be separated from the rest of the mine by installing a substantial concrete bulkhead between operating shaft and the shaft extension.
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