Reprocessing The Bangalee Creek Tailings - Jason Downes - 2012

UNIVERSITY OF GUYANA
FACULTY OF TECHNOLOGY
DEPARTEMENT OF GEOLOGICAL ENGINEERING
Reprocessing the Bangalee

Creek Tailings:
A Preliminary Feasibility
Study
Final Research Paper
Submitted By
Jason Downes
October, 2012
Reprocessing the Bangalee Creek Tailings:

A Preliminary Feasibility Study
This project is submitted in partial fulfilment of the requirements for the Bachelor of
Engineering
Geological Engineering
A Research Submitted by:

JASON DOWNES
10/0939/1647
DEPARTMENT OF GEOLOGICAL ENGINEERING,

FACULTY OF TECHNOLOGY,
Internal Supervisor:
Mr Sherwood Lowe
External Supervisor:
Mr Andre Archer
Manager
Metallica Commodities Corp Guyana Inc.
October, 2012

ABSTRACT
Encouraged by the escalation of gold price experienced within the past few years, the area of
tailings reprocessing and treatment has emerged as a brilliant, seemingly new avenue for
companies seeking to engage in mining without the high capital investment. There exist many
worldwide examples of companies (large, medium and small) actively engaged in this practice.
Locally Metallica CC had decided to enter into this avenue of mining, with them seeking to
reprocess tailings material located within Bangalee Creek Area, Omai. The aim of this research
was to conduct a preliminary feasibility study tailings dumps within the area.
A total of 208 samples were collected from 10 tailings stockpile within the project area.
Sampling was done using series regular grids with samples being retrieved at grid line
intersections at 1 m depth interval to the maximum depth of the tailing dump. Analysis for gold
through fire assay with gravimetric finish was conducted on samples with samples grade
ranging from 0-7g/t for individual samples. Through the application of Rockworks 15 software
package for data management and analysis, 3D grade distribution model of individual tailings
were produced for visualization of results. Subsequent statistical analysis of assay results led to
the determination of average grade values for each tailing, which along which along with
material tonnage data made it possible to estimate the size of the potential gold resource.
A potential gold resource of 101.09 Oz was determined to be contained within 5810.54 tons of
tailings material. At $1600 USD/Oz, the resource is valued at $161,747.20 USD. Based on the
mining method proposed for the reprocessing project, an operational cost of $19,845 USD is
expected per month. Profitability of the project was determined to rely on two factor; the first
being how fast the tailing can be mined and secondly how much of the gold can be recovered.
As of such, the feasibility of the project would be determined by the performance of the
processing plant and the operation as a whole. The current configuration and performance of
the processing plant indicates the potential for a profitable operation, but only if high enough
recovery percentage levels are attained.
ii

ACKNOWLEDGEMENT
First and foremost, thanks to the Almighty God for his guidance, health and strength that
enabled the completion of this research.
The researcher would like to express gratitude to the management of Metallica Commodities
Corp. for giving him the opportunity to conduct this research through the provision of the
necessary resources needed for the completion of the program. Many thanks to manager
(Guyana), Mr. Andre Archer for his guidance, support and encouragement provided throughout
the period of this project. To staff member such as Mr. Orin Riddle, Derick Limerick and Lennox
Cummings, thanks are extended to you for the assistance and when necessary, leadership
offered during field work. Members of the sampling team, special thanks to you guys for the
great job down.
Special thanks are extended to Mr. Sherwood Lowe, Head of the Department of Geology, for his
insights and recommendations provided and for his general critical analysis of this project in
order to make it a success, again thank you. Words of appreciation are also extended to Mr.
Evan Persaud and Mr. Lennox Tucker, lecturers at the University of Guyana, for their guidance
during the conceptualization of this research
Thank you all.
iii

TABLE OF CONTENTS
Abstract ................................................................................................................................ ii
Acknowledgement ............................................................................................................... iii
List of Figures ........................................................................................................................ 1
list of Maps ........................................................................................................................... 2
List of Tables ......................................................................................................................... 2
1
Introduction................................................................................................................... 3
1.1
Background ...................................................................................................................... 3
Objectives ...................................................................................................................... 6
Literature Review........................................................................................................... 7
3.1
3.1.1
Omai Gold Mines Limited Final Report of West Omai ........................................... 7
3.1.2
Historic Mining Activities .......................................................................................... 8
3.2
Previous Work .................................................................................................................. 7
Review of other related literature .................................................................................. 11
3.2.1
Sona Resources Corp Blackdome Mine Tailings, British Colombia ...................... 11
3.2.2
Lake Victoria Mining Company, Singida, Tanzania ................................................. 11
Scope of Work ............................................................................................................. 12

4.1
Location and Access ....................................................................................................... 12
4.2
Geological Setting .......................................................................................................... 15
4.2.1
Regional Geology .................................................................................................... 15
4.2.2
Local Geology .......................................................................................................... 15
Methodology and Design Approach.............................................................................. 17

5.1
Data Acquisition ............................................................................................................. 17
5.1.1
Desk Study............................................................................................................... 17
5.1.2
Site Characterization ............................................................................................... 17
5.1.3
Sampling Strategy and Technique .......................................................................... 18
5.1.4
Sample Preparation and Laboratory Analysis ......................................................... 20
5.2
Data Analysis .................................................................................................................. 21

iv
5.2.1
5.3
6

Processing and Analysis of Downhole Data ............................................................ 21
Evaluation ....................................................................................................................... 23
Results and Analysis ..................................................................................................... 24

6.1
Calculation of Tailing Average Au Grade ....................................................................... 24
6.2
Mineral Resource Estimation ......................................................................................... 33
6.3
Operational Cost Estimation .......................................................................................... 38
6.3.1
Mining Method ....................................................................................................... 38
6.3.2
Cost Assessment ..................................................................................................... 41
Discussion .................................................................................................................... 43
7.1
Mineral Resource Evaluation.......................................................................................... 43
Conclusion ................................................................................................................... 50
Recommendations ....................................................................................................... 52
10 References ................................................................................................................... 53
APPENDIX 1 ......................................................................................................................... 55
Sample point location maps for Tailings Stockpiles .................................................................. 55
APPENDIX II ......................................................................................................................... 62
Table showing sample point data ............................................................................................. 62
APPENDIX III ........................................................................................................................ 73
Gold Distribution Models of Tailings ......................................................................................... 73
APPENDIX IV ....................................................................................................................... 81
Operation profitability Charts ................................................................................................... 81
APPENDIX V ........................................................................................................................ 88
Definition of Terms.................................................................................................................... 88
Inferred, Indicated and Measured Mineral Resource according to NI43-101 .......................... 89

LIST OF FIGURES
Figure 1: Drainage Au Summary & STRM topography. Map produced by Omai Gold Mine
Limited ............................................................................................................................................ 9
Figure 2: Auger, Banka, Rock & Production Drill hole Summary .................................................. 10
Figure 3: BTA Statistical Summary ................................................................................................ 26
Figure 4: BTD Statistical Summary ................................................................................................ 27
Figure 5: BTF Statistical Summary................................................................................................. 28
Figure 6: BTG Statistical Summary ................................................................................................ 29
Figure 7: BTH Statistical Summary ................................................................................................ 30
Figure 8: BTI Statistical Summary ................................................................................................. 31
Figure 9: BTN Statistical Summary ................................................................................................ 32
Figure 10: Pie Chart showing Gold Distribution............................................................................ 36
Figure 11: Diagram illustrating the suggested circuit for reprocessing the tailings ..................... 40
Figure 12: Graph illustrating the connection between Operation Efficiency and Operating Grade
....................................................................................................................................................... 46
Figure 13: Profitability chart for operation at gold price $1200 USD/Oz ..................................... 48
Figure 14: Sample point layout for tailing BTA ............................................................................. 56
Figure 15:Sample point layout for tailing BTB .............................................................................. 56
Figure 16: Sample point layout for tailing BTC ............................................................................. 57
Figure 17: Sample point layout for tailing BTD ............................................................................. 58
Figure 18: Sample point layout for tailing BTE ............................................................................. 58
Figure 19: Sample point layout for tailing BTF.............................................................................. 59
Figure 20: Sample point layout for tailing BTG ............................................................................. 59
Figure 21: Sample point layout for tailing BTH ............................................................................. 60
Figure 22: Sample point layout for tailing BTI .............................................................................. 61
Figure 23: Sample point layout for tailing BTN ............................................................................. 61
Figure 24: Gold Distribution Model for BTA ................................................................................. 74
Figure 25: Gold Distribution Model for BTD ................................................................................. 75
Page | 1
October, 2012

Figure 26: Gold Distribution Model for BTF .................................................................................. 76

Figure 27: Gold Distribution Model for BTG ................................................................................. 77
Figure 28: Gold Distribution Model for BTH ................................................................................. 78
Figure 29: Gold Distribution Model for BTI................................................................................... 79
Figure 30: Gold Distribution Model for BTN ................................................................................. 80
Figure 31: Profitability Chart for the operation at 40% efficiency for gold at $1200 USD/Oz. .... 82
LIST OF MAPS
Map 1: Omai Location Map .......................................................................................................... 13
Map 2: Location of Project Area ................................................................................................... 14
Map 3: Geological Summary of Omai. Map produced by Omai Gold Mines ............................... 16
LIST OF TABLES
Table 1: Sample grid Configurations ............................................................................................. 19
Table 2: Summary of Average Au Grades for Tailings .................................................................. 25
Table 3: Tailing Mineral Resource Estimate Summary ................................................................. 35
Table 4: Tabulation of cost associated with elements of the operation ...................................... 41
Table 5: Monetary value of total Recoverable Gold in Tailing ..................................................... 43
Table 6: Table showing the monthly requirement of the Operation ........................................... 45
Table 7: Summary of Sample Data................................................................................................ 63
Page | 2
October, 2012

1 INTRODUCTION
Metallica Commodities Corp. (henceforth the firm/company) is a locally based, foreign funded
mining company operating in Guyana under license, in the extraction and recovery of gold and
other precious metals. The company first began its operation targeting, like most local miners
alluvial gold leads, but had embedded in its future developmental plans the intent of starting a
project aimed at reprocessing the tailing product from gold mining activities, specifically those
produced by hydraulicking (sluicing). The firm has since acquired a section of land within the
West Omai PL of which a portion has been almost entirely worked by artisanal miners. The
miners employed hydraulicking as their method of extraction and subsequently left a number
of tailings dumps dispersed across the region. It is the opinions of the firm that these tailings
may contain gold in amounts worthy of mining. As such, Metallica CC has opted to conduct a
tailing evaluation program that will aid the decision making process leading up to the possible
reprocessing of the tailings.
1.1 Background
Gold mining has been conducted in Guyana for over 50 years with millions of ounces being
produced over this period. Much of this production is credited to the many artisanal mining
operations within the countrys interior lands. With the exception of the pass 20 years, gold was
traditionally and still is in some cases, produced through basic hydraulicking. Although this
method has been responsible for much of the gold produced in Guyana on the small and
medium scales, it is well known that the efficiency of this method is marginal. The method is
largely applied to alluvial gold deposits where gold is hosted in slightly compacted soil.
Hydraulicking entails the use of high pressure water jets to disintegrate the soil to form slurry, a
mixture of the soil and water. Using gravel pumps, the slurry is pumped up gradient to a
mounted apparatus called a sluice box. The slurry is then allowed to run over the sluice where
gold, being denser than the other constituent settles in the undercurrent of the flow. The base
of the sluice is covered with mat like material that can trap the gold traveling along it in the
undercurrent. Mercury is usually added before and/or after this process for amalgamation.
Page | 3
October, 2012

Gold trapped in the mat is freed through a process of beating the mats into a basin filled with
water. After all the mats have been beaten, the water is removed from the basin leaving behind
the freed sediments. Panning and amalgamation is employed at this point to extract the gold
from this concentrate. Though this method of mining is largely profitable due to the low capital
cost as compared to other methods, it is still considered inefficient because of the high loss of
gold to the tailings. The overall recovery of makeshift sluice box ran by small-scale miner is
about 40-50% (BGS, 1997). Because of this fact, it is no surprise that some local miners engage
in reprocessing their own tailing and those of others to potentially recover lost values. These
efforts are usually still substandard due to the fact that miners utilize the same hydraulicking
method previously employed yielding only marginal recovery from the total potential resource.
Advances in the technology and increased knowledge in the area of mineral processing and
recovery have resulted in equipment and methods with higher efficiency. Their efficiency has
greatly surpassed those of ancient methods and has made it possible to recover values from
materials that were once considered low grade. Enhanced gravity equipment such as the
Knelson concentrator promises recovery of at least 80% in optimal configuration. Methods like
froth flotation go even further by offering recoveries of up to 99%. These resources coupled
with the present gold prices1 have sparked increasing interest into the reprocessing of tailings.
Through the period for which Metallica CC. has been operating in Guyana, efforts were put into
obtaining the necessary equipment, technology and personnel required for effective and
efficient mining practices. These efforts resulted in the acquisition of high efficiency processing
units such as trommel screens, Icon and Knelson gold concentrators and shaking table. With
these resources at hand, the company is ready to expand its operation to include a tailing
reprocessing program.
This opportunity was presented following investigation of a section of land within the
relinquished west Omai PL. The Bangalee Creek area is located within this PL and was for the
period February 1997 February 2005 under investigation by Omai Gold Mine Limited. Omai
Upon completion, Omai Gold Mines Limited subsequently produced a report detailing this work
and highlighted within it the potential of the area to host a sizable alluvial deposit for small
1
As of July, 2012 world gold price taken from www.goldprice.com was averaged at USD $1600.
Page | 4
October, 2012

scale mining. This knowledge led to the investigation of the area, upon which it was discovered
the land was already worked by artisanal miner. Littered with tailing dumps the firm decided to
conduct an evaluation of these tailing since it is of the opinion the tailings may contain gold in
amounts worthy of mining.
The aim of this project is to evaluate the tailings dumps in the Bangalee creek area to
quantitatively assess the presence of gold following which the preliminary feasibility of mining
the tailings will be assessed. This report documents the objectives, methodology and findings of
the project.
Page | 5
October, 2012

2 OBJECTIVES
I.
To delineate and quantify the occurrence of gold within tailings dumps of the Bangalee
Creek Area, West Omai
II.
To conduct a feasibility for a tailing reprocessing operation of the tailings material in the
Bangalee Creek Area, West Omai
Page | 6
October, 2012

3 LITERATURE REVIEW
3.1 Previous Work
3.1.1 Omai Gold Mines Limited Final Report of West Omai
Through the period February 1997 to February 2005, Omai Gold Mines Limited had conducted
exploration work on the Western part of the Omai block and subsequently produced a report
detailing the activities and findings of the project. Omai Gold Mines undertook work in the area
to investigate the possible westward extension of the Wenot contact into this section of the PL.
Though the Wenot contact was successfully traced westward, then along a cross fault to the
south into the South Boundary Target area and drilling proved that it was still locally
mineralized, grades and volumes were very small. Work done by Omai Gold Mines Ltd included
drainage sampling (some multi-element), geological mapping, grid-based auger sampling,
Banka, Production and Diamond Drilling. This research paper bears reference to the
aforementioned report because it presents currently the primary, most recent and only
documented source of previous work data for the Bangalee Creek Area.
Finding: Bangalee Creek Alluvial Target

Primary mineralization occurs in irregular shear related quartz veinlet zones on the northern
flank of Quartz Hill. This may represent a splay off the Wenot Contact. Primary mineralization in
the Quartz Hill area has been extensively eroded to form the alluvial/colluvial resource in
Bangalee Creek.
This alluvial area extends downstream into the western part of the Omai PL. As shown in Figure
2, locally good (>2ppm Au) auger or Banka drill results occur in the low-lying parts of the
Bangalee Creek area, related to a similar alluvial zone. Gold was found to be restricted to a thin
gravel layer lying below 2-3m of barren sand, and in the western part of the area to supergeneenriched laterite zones max 6m thick underlain by barren saprolite.
The laterite area was drilled, in the hope that gold was derived from a mineralized structure
hidden under the alluvium; drilling also led to the conclusion that the quartz float, soil
Page | 7
October, 2012

anomalies and possibly the Bangalee Creek mineralization were all mudslide-type occurrences,
with a source(s) uphill to the south.
3.1.2 Historic Mining Activities

As was previously mentioned, the present tailing stockpiles existing throughout the Bangalee
Creek area were the product of previous hydraulicking activities. Though the legitimacy of the
data is questionable, conversations with locals within the vicinity of the study area have
indicated that production values obtained from single operations averaged 30 ounces per
operation cycle (4-5 days).
Page | 8
October, 2012

Figure 1: Drainage Au Summary & STRM topography. Map produced by Omai Gold Mine Limited
Page | 9
October, 2012

Figure 2: Auger, Banka, Rock & Production Drill hole Summary
Page | 10
October, 2012

3.2 Review of other related literature

Examples of exploration work conducted on tailings were sought and revised from many
source. Particularly relevant to this project proposal were the methods used to gather, analyze
and present the various data sets. Stated below are examples from some of the methodologies
revised.
3.2.1 Sona Resources Corp Blackdome Mine Tailings, British Colombia
Type and Extent of Drilling
Prior to drilling, a grid was established over the entire tailings pond. A baseline trending 065
was established along the crest of the tailings pond. A series of 10 lines were run perpendicular
to the baseline. Lines were spaced at 15 meter intervals except at the boundaries of the tailings
pond where a reduced spacing of 10 meters was used. Drill holes were spaced at 30 meters
except near the south end and margins of the pond where shorter intervals were necessary.
Sampling Methods
The tailings pond was sampled with vertical holes drilled along at 30 meter intervals along lines
spaced at 15 meters or less. Samples were collected at five-foot (1.5 m) intervals throughout
the holes. Not all the holes could reach the bottom of the tailings pond. This was the case for
holes close to the dam and was due the thickness but also the type of material in this area
(sandy fill).
3.2.2 Lake Victoria Mining Company, Singida, Tanzania
This company was actively engaged in a tailing sampling and evaluation project. The project
targeted tailing piles of small scale artisanal miners at the Kilimanjaro Mining Companys
Signida Gold Rush area. The tailing piles are a result of the past five years of small scale
mining, processing and gold recovery operations by the miners. The sampling method utilized in
this project provided some insight into the design of the sampling program for the current
research. At Lake Victoria Mining Company, sampling was conducted on a grid spacing of 4
meters by 4 meters using augers. The holes were augered with samples taken at each one
meter interval.
Page | 11
October, 2012

4 SCOPE OF WORK
This report outlines the activities relating to and the subsequent findings of an exploration
program designed and executed for the monetary evaluation of gold tailings. The project was
conducted under Metallica Commodities Corp, for whom the findings of the project best
served. The completion of the project and compilation of this report relied on the following
activities:
a. Location and Identification of gold tailings within the area of study
b. Sampling and laboratory analysis of those samples for data acquisition
c. Interpretation and analysis of data for modeling and tailing resource estimation
d. Operational cost analysis for the proposed tailing recovery program
e. Deduction of preliminary project feasibility based on proposed operation cost and
estimated resource value.
4.1 Location and Access

The area of study is located within a section of land owned by the company in the relinquished
West Omai PL. The project area sits on a section of land in the vicinity of the Bangalee Creek
which is located on the right bank of the Omai River (Map 2). The Omai PL is located within the
Potaro Mining District; Central Guyana, and is approximately 165 Km South-southwest of
Georgetown (Map 1).
The Omai area is readily accessible via the Linden/Lethem road. It requires an approximate 60
miles of driving along this main road before branching off right onto the Omai road. The Omai
road leads to the Omai crossing which takes you across the Essequibo River. Once on the right
bank of the river, another 10 minutes driving along the Omai road will give you access to the
Omai area. The sometimes potholed Linden/Lethem road can lend for an uncomfortable drive
but usually an easy one. The Omai PL can also be accessed by plane landing at the Omai airstrip.
Page | 12
October, 2012

Map 1: Omai Location Map

Page | 13
October, 2012

Map 2: Location of Project Area
Page | 14
October, 2012
4.2

Geological Setting
This project seeks to evaluate tailings material and as of such, the regional geology will not
explicitly represent the current nature of the resource assessed. It however provides some
background information.
4.2.1 Regional Geology
The Bangalee Creek and its environs are located in the Paleoproterozoic Barama-Mazaruni
Supergroup, a greenstone terrain deformed and metamorphosed during the Trans-Amazonian
orogeny, a tectono-magmatic event bracketed between approximately 2.3 and 1.9 Ga. The
greenstone belt sequence comprises alternating felsic to mafic and ultramafic volcanic flows
interlayered with thick sedimentary units2. The Barama-Mazaruni Supergroup is intruded by
acid dykes (e.g. quartz feldspar porphyry) and small granitic intrusions. Larger intrusions of
Younger Granite locally result in contact metamorphism, resulting in the formation of
amphibolites.
4.2.2 Local Geology
The Bangalee Creek tailings are located within the creeks valley. The surrounding laterite hills
are capped with unconsolidated White Sand with thickness of up to 10m. Primary
mineralization in the Quartz Hill area has been extensively eroded to form the alluvial / colluvial
resource in Bangalee Creek. The Tailings occur disperse through the creek valley for a distance
of about 1km. The tailing comprise of a partially compacted gravel-sand matrix usually
underlain by a moderately plastic silt-clay horizon.
Gibbs and Barron, 1993
Page | 15
October, 2012

Map 3: Geological Summary of Omai. Map produced by Omai Gold Mines
Page | 16
October, 2012

5 METHODOLOGY AND DESIGN APPROACH

The following section describes the procedures used in the execution of this project. The main
activities and task are here described under the following sections; Data Acquisition, Data
Analysis and Evaluation.
Objective 1
5.1 Data Acquisition
5.1.1 Desk Study
Consultation of various literatures and other relevant sources of information on the
geographical project area and the topic of tailings evaluation was essentially the first step in
execution of the project. Articles relating to tailings evaluation programs were largely sourced
from the internet. Such documents provided information on the various concepts, strategies,
methodologies, standards and resources considered and utilized globally for projects aimed at
reprocessing gold bearing tailing dumps/stockpiles. These documents were particularly helpful
in the development of the sampling plan used in this project. Such documents are cited in the
literature review section of this report and thus will not be expounded on here. The Guyana
Geology and Mines Commission (GGMC) served as the major source of information relevant to
the project area i.e. the Bangalee Creek area. Reports such as the West Omai Final report cited
in the literature review provided useful background information into the region. The GGMC also
served as a source for maps of the area. Discussions with locals provided useful background
information on the region of study.
5.1.2 Site Characterization
Field wok commenced with activities related to site characterization. A planned 3 days trip was
used to observe and describe the Bangalee Creek area and tailings dumps which it contained.
Activities conducted during this period included identification of tailings dumps, determination
of accessibility to individual tailings and describing and measuring of accessed dumps. The
locations of accessed dumps were marked and recorded using the Garmin CSX 60 GPS. Each
Page | 17
October, 2012

tailings dump was given a field name for identification which was entered into a field log book
along with description, measurement and location data. This information (except description)
was also placed onto a strip of flagging tape tied to a stick and stuck upright on each tailing.
This preliminary site investigation work along with knowledge garnered from consulted
documents provided the basis for designing a comprehensive and strategic sampling program.
From the preliminary field work conducted, it was seen that the tailings dumps varied in their
shape, size and material distribution. These differences were quickly identified as a reason for a
sampling method that would be adaptive to the characteristics of each tailing. The program
would need to, at the same time, be able to sample each tailing adequately without producing
excessive amounts of samples.
5.1.3 Sampling Strategy and Technique
The sampling strategy employed was aimed at providing detailed information on the
characteristics of the tailings dumps. As previously mentioned the variations in shape, size and
depth of tailings dumps, required the sampling method to be adaptive to the various tailings
dumps for adequate representation of each. Sampling was done using regular grids, where
samples were collected at grid line intersections occurring on the tailings. Grid configuration
varied based on the calculated rectangular area of the individual tailings (see Table 1). In
establishing the grid, the first point was positioned at the apex of the dump from which the grid
developed outwards to the extent of the tailing.
This style of grid and sampling was selected because it ensures maximum cover of the tailings
dump while maintaining an adequate sample density. The utilization of a single fixed grid across
all tailings would have produced one of two possible costly scenarios. In the first scenario
where a standard small grid is utilized (e.g. 5m5m), in large tailings this would have produced
a large number of sample points, resulting in the over sampling of the mass. Likewise, a
significantly larger sample output for laboratory analysis would have been produced resulting in
longer processing and overall increase in cost. For the second scenario where a standard large
grid is utilized (e.g. 7m7m), small tailings stockpiles would have been inadequately sampled
and therefore inadequately assessed resulting in the underestimation of the potential mineral
resource. The larger sample spacing on smaller tailings would have reduced the number of
Page | 18
October, 2012

sample points on these tailings, which could be costly since critical point may be missed due to
wide spacing.
Table 1: Sample grid Configurations
Description
Grid Configuration
Tailing having dimensions less than 144m2
4m4m
Tailing having dimensions between 144m2 400m2
5m5m
Tailing having dimensions between 400m2- 900m2
6m6m
Tailing having dimensions greater than 900m2
7m7m
The distribution of unrecovered gold values in these tailings stock is a process controlled by
factors ranging from particle size and density to discharge rate from the sluice. However, it is
know that from time to time, these miners would employ various means, physical or
mechanical, of repositioning the discharge from the sluice in an effort to keep the discharge
point clear from material piling up and choking the system. As of such, this program was
designed without the assumption that the distribution of the mineral of interest was not
exclusively controlled by the normal dynamic factors.
Samples were collected at 1m depth interval (where applicable) at sample points established
from the grid configuration utilized. A motorized auger was use to drill vertically to the base of
the tailing at each sample point. The base of the tailing was interpreted as that part where a
very plastic slushy silt-clay material was intersected or where consolidated humic soil was
encountered. At each sample point, a sample was taken at each 1 meter interval of depth. The
material was retrieved from the auger bit and placed onto a plastic bag or into a bucket where
it was homogenized after which a sample of approximately 300 g was taken. Sampled materials
were placed into draw-string plastic sample bags. Sample ID, sample description, sample depth
interval and tailing location were recorded in sample books. Sample books consisted of a
perforated sheet that can be torn off and placed into the sample bags. The main segment in the
book and the perforated segment had matching sequence numbers, so samples can be
identified or correlated with filed description data. Upon completion of a sample point all tools
Page | 19
October, 2012

and materials used during the auger and sampling process were rinsed thoroughly before being
used at the next sample point, this reduced the possibility of cross contamination.
Samples were transported from field to the laboratory in buckets in an effort to avoid damage
to the samples and spillage of sample content. Stacking of samples was avoided since this could
force water and suspended particles out of underlying samples, which in turn can contaminate
surrounding samples.
5.1.4 Sample Preparation and Laboratory Analysis
Samples collected in the field were subsequently submitted to the onsite Metallica CC
laboratory (previously Omai Gold Mines Laboratory) for preparation and analysis. The sample
preparation procedure was as follows:
1. Sample tags were removed and samples were placed into numbered pan.
2. Sample tag number and the number of the pan in which it was placed were recorded
into lab entry book for tracking.
3. Pans were then placed into a countertop hot air convection oven for drying at 150C for
approximate 8-12 hrs.
4. After drying, each sample was passed through a riffle box to obtain two reduced splits.
5. The splits were placed into individual sample bags and labeled according to the sample
tag.
6. One split was sent for continued preparation while the second was placed into storage
as a duplicate sample.
7. The reduced split was sent for pulverization for size reduction and screening so that 85%
of the material passes the US 200 mesh.
8. From the pulverized product, 30g was extracted from each sample for fire assay.
Between each sample, laboratory equipment was cleaned to reduce the possibly of
contamination.
Page | 20
October, 2012

5.2 Data Analysis

5.2.1 Processing and Analysis of Downhole Data
This process was achieved through the use of the geological modeling software, RockWork15.
All values obtained from the laboratory were entered into an Excel spread sheet along with
field data pertaining to each sample i.e. - field designation, sample location, sample description,
etc., these data were then imported into RockWorks15. RockWorks15 is an integrated software
package that can be used for the management, analysis and visualization of geological data. All
geographical and geologic data related to the samples obtained were managed and
subsequently processed utilizing the RockWorks15 software package.
5.2.1.1 Mapping
The first step required for the analysis of downhole data is the 2-Dimensional surface projection
of the drill/auger holes. This was done for each tailing analyzed utilizing the grid array that was
assigned to the tailing. This produced a surface map showing the relative location of the sample
points on the tailing, (see Appendix I). Entering the grid based sample location data was easily
achieved in the RockWorks15 software since it provided an excel spreadsheet type utility for
entering this data. This data was entered in a Cartesian coordinate format, where the locations
of sample points were given relative to a central point/origin and two perpendicular axes.
Associated data entered included sample ID and total depth value for each sample point.
Though not necessary for the mapping of the sample point, the hole depth was required for the
next step; 3D Modeling.
5.2.1.2 Grade Distribution Models
Following the input of the location data for all sample points on a given tailing, the next step
involved the entering of the down hole data related to the sample points. For the purposes of
the project, this was mainly the sample assay values. Again, this data was easily entered into
the software through its downhole management tool. The assay value and the depth interval
for the specific sample point which they represent were entered into downhole management
tool. This was done until each sample for the specific tailing dump was accounted for. The
proper entry of these data allowed for the production of 3D grade distribution models.
Page | 21
October, 2012

Appendix III illustrates the grade distribution models for the tailings. Note that the outlines of
the models do not necessarily represent the actual shape of the tailings bodies.
5.2.1.2.1 Compositing
Length weighted compositing of assay values for individual sample points was done prior to the
generation of models and calculation of average tailing grade. This task was accomplished in
RockWorks15. Length weighted compositing refers to the process in which the assay values for
a specific drill hole are multiplied by their corresponding thickness. These values are then
summed and divided by the sum of their thickness, thus giving an average value for the drill
entire section or interval. This was done to obtain an average grade for each sample point on
the tailing, since each point comprised of a number of downhole samples at various depths.
Compositing was done for the entire length of the drill hole rather than in increments.
Compositing of downhole data is usually a very useful tool since it effectively reduces the
number of samples to be processed for modeling and other computations.
5.2.1.2.2 Modeling Algorithm

Modeling the gold grade distribution for the individual tailings was done using the inverse
distance anisotropic solid modeling method. This method essentially utilizes the inverse
distance algorithm. With this algorithm, a voxel point value is assigned based on the weighted
average of neighboring data points, and the value of each data point is weighted according the
inverse of its distance from the voxel node, taken to a power (an exponent of 2? = InverseDistance squared, 3? = Inverse-Distance cubed, etc.). In assigning a voxel node value, the
anisotropic method used the closest point within each 90 degree sector around the voxel. The
anisotropic method was chosen based on the nature of the assay data. The method reduced
the bulls-eye effect that the raw data presented and gave a better representation of grade
distribution.
5.2.1.3 Statistical Analysis
While grade distribution models are useful for evaluating and visualizing the distribution of
sample assay data, mineral resource estimation calculations are dependent on the
Page | 22
October, 2012

development of an average grade for the deposit being considered. The average grade for the
various tailings investigated was computed using the RockWork15 software. Based on the input
data, the program calculated parameters such as the mean, standard deviation; variance and
coefficient of variation for the data set for each tailing dump (see pg.26-32). The mean was
used as the average grade value for the entire tailing body. A summary of the computed
average Au grades are provided in Table 2, pg.25
Object 2
5.3 Evaluation
Findings from the data analysis were incorporated into this phase which sleeked to determine
whether the feasibility of reprocessing the tailing dumps. Tailings grade values obtained from
the previous phase were applied to material tonnage data gathered to further define the
resource and estimate potential return based on current gold prices. Operational cost for the
reprocessing of the tailings was estimated based on the present operational cost incurred by
the firm. Profitability of the proposed operation was evaluated from this data.
Page | 23
October, 2012

6 RESULTS AND ANALYSIS

6.1 Calculation of Tailing Average Au Grade
The averaging of the Au grade for each tailing was done utilizing the composited sample point
values. Because compositing produced an average value for the entire length of an auger hole,
it made it simpler to compute the average tailing grade since a smaller population can be
considered. The value of each sample point was taken to represent the average grade for a
block/square enclosing that point. The size of the block was determined by the grid
configuration utilized to sample the tailing. For example, if a 5m 5m grid configuration was
used to sample the a tailing dump, then the value of each sample point on that tailing would
represent a block of 5m 5m, like wise for a 6m 6m grid configuration, each sample point
would represent a block 6m 6m in dimension.
This method of analysis raises the question of area of influence of individual sample points.
Based on this methodology, it means that for larger tailing it is expected that the value of a
single sample point is expected to extent or influence possibly 2 times the area of a similar
sample point on a smaller tailing. It however is the opinion of the author that this does not raise
an issue with the computation of the overall grade, since it was accommodated for in the
planning stage of this project where a maximum grid configuration and by extension, area of
influence of 7m 7m will be used. The average Au grades were calculated as the sum of the
individual sample grades for a tailing divided by the sample population being observed. Since
the composited data was used, the population size was always equal to the number of sample
points on the tailing.
Page | 24
October, 2012

Table 2: Summary of Average Au Grades for Tailings
Field Designation
Tailing Coordinate (PSAD 56)
Au Grade (g/t)
BTA
21 N 0302671 0602883
0.708
BTB
21 N 0302646 0602883
BTC
21 N 0302722 0602871
BTD
21 N 0302733 0602818
0.499
BTE
21 N 0302702 0602818
BTF
21 N 0302655 0602840
0.44
BTG
21 N 0302619 0602807
0.24
BTH
21 N 0302692 0602719
0.463
BTI
21 N 0302665 0602701
0.234
BTN
21 N 0302667 0602739
1.22
Page | 25
October, 2012

Figure 3: BTA Statistical Summary
Page | 26
October, 2012

Figure 4: BTD Statistical Summary
Page | 27
October, 2012

Figure 5: BTF Statistical Summary
Page | 28
October, 2012

Figure 6: BTG Statistical Summary
Page | 29
October, 2012

Figure 7: BTH Statistical Summary
Page | 30
October, 2012

Figure 8: BTI Statistical Summary
Page | 31
October, 2012

Figure 9: BTN Statistical Summary
Page | 32
October, 2012

6.2 Mineral Resource Estimation

Much of the work and analysis thus far were part of a process aimed at providing information
regarding the quantity of the mineral of interest contained within the depositional bodies
investigated. In order to quantify the indicated mineral resource hosted in the tailings dumps,
two parameters had to be first obtained, the average gold grade of the tailing and the material
tonnage of the tailings dump. The average Au values for each tailing and the method of
obtaining those values were previously discussed in section 6.1 and thus will not be revisited
here. The material tonnage of each tailings dump was obtained through volume material
density calculation. The volume was obtained by multiplying the calculated area of the tailings
dump, i.e. measured length by width, by its average depth which was taken as the quotient of
the sum of sample hole depths in a tailing divided by the number of sample points. The process
of determining the mineral resource of a tailings dump is shown below.
Calculations 1
a. Calculation of Material Tonnage for BTA
Length of Tailings Dump
= 22m
Material Density = 1.3 t/m3
Width of Tailings Dump
= 16m
Average Depth of Tailings Dump = 1 m
i.
Area of Tailing
= Length x width
= 22m 16n
= 286m3
ii.
Volume of tailing
= Area of Tailing x Depth of Tailing

= 286 m2 1 m
= 286 m3
iii.
Material Tonnage of Tailing = Volume of Tailing Density of tailing material

= 286 m3 1.3t/m3
= 371.8 Tons
Page | 33
October, 2012

b. Calculation of mineral resource estimate for BTA

Material tonnage of Tailings = 371.8 tons
Average Au grade of tailing
i.
= 0.708 g/t
Total gold resource of BTA
= Material tonnage of tailing Average Au grade off tailing

= 371.8 tons 0.708 g/t
= 263.23 g
Unit conversion factor

1 Ounce of Au = 31.1 grams
So that 263.23 g of Au
= 263.23g / 31.1
= 8.46 Oz
This method of estimating the gold contained within the tailings material was repeated for each
tailing dump investigated. The actual process of calculating and tabulating these values was
done using the Microsoft Excel component of the Microsoft Office software package. A
summary of these calculations is shown in Table 3: Tailing Mineral Resource Estimate Summary,
along with the total material and mineral resources.
The mineral resource estimation process was performed in such a manner that all tailings
dumps reporting an overall grade of zero grams per ton of material were excluded from the
tabulation of the total material tonnage. This was achieved by using a zero value for the
material density for those tailings. What this produced was the total tonnage of gold bearing
tailings within the area. Using that value along with the total gold value, it was possible to
calculate an average grade for all mineral bearing tailings bodies.
Page | 34
October, 2012

Table 3: Tailing Mineral Resource Estimate Summary
Tailing
Dump
Field
Desig.
Tailing
Coordinate
(PSAD 56)
Width
(m)
Length
(m)
Area
(sq. m)
Avg.
Depth
(m)
Volume
(Cu. m)
BTA
21 N 0302671
0602883
13
22
286
286
BTB
21 N 0302646
0602883
12.5
26.5
331.25
331.25
BTC
21 N 0302722
0602871
11
18
198
0.5
99
BTD
21 N 0302733
0602818
10
14.5
145
1.3
188.5
BTE
21 N 0302702
0602818
18
13
234
468
BTF
21 N 0302655
0602840
18.5
30.5
564.25
1.7
959.23
BTG
21 N 0302619
0602807
15
19
285
1.5
BTH
21 N 0302692
0602719
10.5
26.5
278.25
BTI
21 N 0302665
0602701
24
30.5
10
BTN
21 N 0302667
0602739
22
27
Total
Material
Density
(Ton/Cu
. m)
Material
Tonnage
(Tons)
Au
Grade
(g/t)
371.8
0.78
263.23
8.46
245.05
0.499
122.28
3.93
1.3
1246.99
0.44
548.67
17.64
427.5
1.3
555.75
0.24
133.38
4.29
1.7
473.03
1.3
614.93
0.463
284.71
9.15
732
1.7
1244.4
1.3
1617.72
0.234
378.54
12.17
594
1.5
891
1.3
1158.3
1.22
1413.12
45.44
1.3
1.3
0
5810.545
Au in
tailing
(g)
Au in
tailing
(Oz.)
3143.957
101.09
Page | 35
October, 2012

Percentage Distribution of Gold across the Tailings Dumps
0%
8%
45%
0%
4%
0%
BTA
BTB
BTC
18%
BTD
BTE
BTF
BTG
4%
12%
BTH
BTI
9%
BTN
Figure 10: Pie Chart showing Gold Distribution
Page | 36
October, 2012

Calculations 2
a. Calculation of Average grade of Tailings
Total tonnage of mineral bearing tailings material = 5810.54 tons
Total gold in mineral bearing tailings
i.
Average grade of tailings
= 3143.96 grams
=
=

.
.
= 0.541 g/t
By establishing the overall average grade of the mineralized tailings, it becomes simpler to
assess the resource and determine its economic viability. The average grade of the tailings
material will be used for evaluating the tailings to determine whether the current resource is
substantial enough for reprocessing or if, should it be necessary, additional tailings dumps
should be eliminated from the population in order to produce a higher grade of material for
mining.
Page | 37
October, 2012

6.3 Operational Cost Estimation

Exploratory work and computer aided analysis of the data it provided have resulted in the
establishment of an indicated mineral resource of 3143.97g (101.09 Oz). of gold contained
within 5810.54 tons of tailings material. The stated mineral resource estimate is the product of
the ten tailings dumps within the Bangalee Creek area targeted and investigated by this project.
The indicated tonnage of tailings material for which the mineral resource is contained, was
deduced following the removal of tailing reporting a grade value of zero. Based on these
figures, it has been determined that the total average grade of the mineralized tailings dumps is
0.541g Au/t.
For the purposes of this report, a brief description of the firms proposed mining method is
presented in the following subsection.
6.3.1 Mining Method
The circuitry of the main operations and processes is illustrated in Figure 11 and are here
expounded upon. Tailing material selected for reprocessing would be excavated and heaped,
when possible, into one stockpile at a designated point for processing. High pressure water jets
will be used to disintegrate the material in the stockpile and create slurry. The slurry under the
influence of gravity will move down an established inclined trench in to a small sump. Using a
gravel pump, the slurry will be sucked up and sent up slope to a trommel for sieving. The
trommel, a cylindrical rotating sieve, will separate the passing material in to two size fraction:
+2mm and -2mm respectively. The +2mm material produced at opening at the other end of the
trommel will be stocked and stored for backfilling of pits within the area. Material reporting to
the undersize of the 2mm mesh will pass through the base of the trommel and down a trough
which will direct the material to a second, larger sump. Material accumulated in this sump will
be sent, via a gravel pump, to a Knelson Concentrator for processing. The Knelson, which is a
enhance gravity concentrator; will cause the gold and other dense particle to lodge within the
riffle in its bowl while expelling the lighter presumably waste particles. The waste materials are
channeled away from the Knelson, via a series of pipes, and into a third sump for storing, where
it can be excavated and used for backfilling of surrounding old pits and ponds. After an
Page | 38
October, 2012

estimated run time of about 1 hour, the Knelson will be stopped to retrieve the concentrate.
Subsequently the concentrate will be sent for further processing on the shaking table to
recover the gold. The operation is expected to require 9 persons:
(1) Excavator Operator
(2) Morack Men
(1) Team Leader
(2) Pitmen
(3) Jet men
Based on the previous data provided by Metallica CC Guyana Inc., an average processing rate of
90ton solid/day was calculated for its operations utilizing this circuit and method of mining.
Based on specifications provided for equipment being utilized within the circuit, the operation
should be capable of processing at minimum 20 ton solid /hour. Processing time is expected to
be about 8-9 hr. per day. This translates to an average processing rate of 170 ton of solid per
day of operation, a figure that greatly surpasses the current average. It is clear from this
comparison that the current operation is functioning far below capacity is thus inefficient.
Though it is currently unknown, the percentage mineral recovery of the operation is capable of
exceeding 80% efficiency at optimal performance. The Knelson concentrator, the primary
concentrator in the below circuit, at optimal setting is capable of recovering 95% of all gold
particles presented to the equipment.
Page | 39
October, 2012

TROMMEL
FEED
BACKFILL
+2mm
-2mm
SLURRY
Pumping
STOCKPILE
SUMP
SUMP
HOLDING
POND
Pumping
KNELSON
CONCENTRATOR
TAILING
SHAKING TABLE
CONCENTRATE
GOLD
Figure 11: Diagram illustrating the suggested circuit for reprocessing the tailings
Page | 40
October, 2012

6.3.2 Cost Assessment

A projection of the operational cost was made based on the proposed mining method and data
provided by Metallica CC Guy Inc. The calculation was done for a 25 day working month as
suggested by the firm. The maximum incurrable cost was determined utilizing all available data.
This value was taken as the costs encountered for the firm to mine and process the tailings for a
full 25 days period. It is expected that preparatory and auxiliary work would require less
resources and as such would generate a smaller monthly cost. Table 4 shows the tabulation of
the projected maximum monthly cost.
Since all necessary equipment, parts and machinery for operation are already available; such
costs were not tabulated into the expense of the operation.
Table 4: Tabulation of cost associated with elements of the operation
Item
Unit Cost
Qty.
Excavator Operator
8200/day
Per Day Cost

(Total)
8200
Jet man
3500/day
10500
262,500.00
Morack Man
3500/day
7000
175,000.00
Pit Man
3500/day
7000
175,000.00
Team Leader
4000/day
4000
100,000.00
Fuel (Excavator)
48000/day
48000
$ 1,200,000.00
Fuel (Generator)
18800/day
18800
470,000.00
28800
720,000.00
Food and Accommodation
3200/per/day
Sub-Total
Miscellaneous
Monthly Cost
(25 days)
$
205,000.00
$ 3,307,500.00
20%
Total
661,500.00
GYD
$ 3,969,000.00
@ 200 GYD/USD
USD
@ 1200 USD/Oz
Gold (Oz)
16.54
@ 1600 USD/Oz
Gold (Oz)
12.40
19,845.00
As seen from the table above, the total maximum monthly cost incurrable to the firm is
approximately $3,969,000 Guyana dollars. Using a low gold price of $1200 USD/Oz and gold
high price of $1600/Oz for the period July, 2012 December, 2012, the equivalent of the total
Page | 41
October, 2012

expense in gold was calculated. This figure in gold is between 12-17 ounces per month. This
means that in order for the operation to recover its monthly incurred expense, it must produce
12.40 or 16.54 ounce of gold at $1200 USD/Oz or $1600 USD/Oz respectively.
Since Metallica CC is currently involved in trucking of stones out of Omai, much of the necessary
facilities and therefore capital cost has been previously established and invested.
Page | 42
October, 2012

7 DISCUSSION
7.1 Mineral Resource Evaluation
The estimated quantity of the mineral of interest within the investigated bodies and the cost
associated with processing and recovering the mineral were obtained and discussed in previous
sections. It is now the aim of this section to assess this resource based on projected operational
cost to determine, and hence make preliminary pronouncements on, the economic viability of
reprocessing the investigated tailings for their contained mineral resource.
Through methods of compositing, modeling and statistical analysis of downhole data obtained
from samples taken from the 10 tailings dumps, an indicated mineral resource of 101.092 Oz
of gold was identified. Screening of tailings reporting an overall grade of zero resulted in a
reduction of the overall material tonnage being considered. Because the tailings eliminated
from the set had an average grade of zero, the initial calculated mineral resource value was still
the same. Using the reduced material tonnage and the computed mineral resource value which
was contained within it, an average grade was calculated for the tailings deposits. This value
was 0.541g Au/t while the reduced material tonnage value was 5810.545 tons. The estimated
cost of an operation targeting these tailings utilizing the mining method described in section
6.3.1 was calculated at $19,845.00 USD per operating month i.e. 25 days, or $793.80 USD per
day. This cost appears relatively minute when the value of the mineral resource is considered as
shown in Table 5. It is however important at this stage that two aspects of the operation, i.e.
efficiency and processing rate, be considered prior to making any declarations. The
performance of the processing circuit in terms of mineral recovery and processing rate are
important to the successful exploitation of the mineral resource.
Table 5: Monetary value of total Recoverable Gold in Tailing
Indicated Mineral Resource

(Oz.)
101.092
Gold Price
(USD/Oz)
Value of Gold Resource

(US Dollars)
Min
$1200.00
$122,310.00
Max
$1600.00
$161,747.20
Page | 43
October, 2012

These parameters are here evaluated in conjunction with computed mineral resource and
operational cost data to determine whether the proposed operation will be able to feasibly
mine the tailings dumps and at what performance level.
As stated in section 6.3.1, the processing plant at its current level of operation, works at an
average processing rate of 90 ton/day of solids. This translates to an average of 2250
ton/month of solids. Using this value along with the calculated gold production requirement
shown in Table 4 on pg. 41, the average gold grade required by the operation can be calculated.
Calculations 3
i. Monthly Material Tonnage Processed
Monthly Required Production @ 1200 USD/ Oz
Required Grade
=
=
= 2250 Tons
= 16.54 Oz
!
"
!# @ % &'(/
"#
*. +,
%% -./0
= 0.00735
= 0.00735 31.1g/Oz
= 0.228585 g/t
ii.
Monthly Material Tonnage Processed
= 2250 Tons
Monthly Required Production @ 1600 USD/ Oz
= 12.40 Oz
Required Grade
=
=
!
"
!# @ * &'(/
"#
%. +,
%% -./0
= 0.00551 Oz/Ton
= 0.00551g 31.1g/Oz
= 0.1714 g/t
Page | 44
October, 2012

Table 6: Table showing the monthly requirement of the Operation
Tons/ Day (Alluvial)
90
Daily Required Production @ 1200 USD/ Oz (Ozs)
0.66
Daily Required Production @ 1600 USD/ Oz (Ozs)
0.50
Tons/Month (Alluvial, 25 day)
2250
Monthly Required Production @ 1200 USD/ Oz (Ozs)
16.54
Monthly Required Production @ 1600 USD/ Oz (Ozs)
12.40
Monthly Required Grade @ 1200 USD/Oz (Oz/Ton)
0.0074
Monthly Required Grade @ 1600 USD/Oz (Oz/Ton)
0.0055
Monthly Required Grade @ 1200 USD/Oz (g/t)
0.23
Monthly Required Grade @ 1600 USD/Oz (g/t)
0.17
As summarized in the above table, the required grades at USD $1200/Oz and USD $1600/Oz are
0.228g/t and 0.171g/t respectively. The current resource has been observed as having an
overall grade of 0.541 g/t, a grade that surpasses the operational requirements. While this
remains the grade of the tailings bodies, it does not signal the grade at which the processing
plant would be operating. The operating grade of the processing plant is determined by the
percentage mineral recovery of the unit. A high mineral recovery percentage translates to a
high operating grade while a low recovery would represent a low operating grade.
The graph on pg. 46 indicates how changes in the mineral recovery percentage can affect the
operational grade of the processing plant and as of such the overall recovery of the operation.
The blue line indicates the operating grade at a specific efficiency level, while the red and green
lines show the grade required when the price of gold is USD $1200/Oz and USD $1600/Oz
respectively. From the chart, it can be seen that a recovery level of approximately 43% is
required to meet a breakeven at a low gold price of $1200 USD/Oz. At a high gold price of USD
$1600/Oz, the operation would require a lower recovery percentage, approximately 32%, to
balance its expenses. Note that the recovery levels discussed here and indicated by the chart
are based on the current average processing rate being observed by the firm, i.e. 90 ton solid
per day.
Page | 45
October, 2012

0.6
0.55
0.5
0.45
0.4
GRADE
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage Recovery
Operating Grade at % Recovery
Required Grade @ 1200 USD/Oz (g/t)
Required Grade @ 1600 USD/Oz (g/t)
Figure 12: Graph illustrating the connection between Operation Efficiency and Operating Grade
Page | 46
October, 2012

As of such, they only suggest what efficiency levels are required by the operation to cover cost
if its processing rate remains the same. It also indicates that either a higher mineral recovery
level and/or processing rate are required to make the operation profitable. If the operation is
capable of a higher mineral recovery percentage than that required by the minimum gold price
estimate, it would be able to gain profitable returns from re-processing the tailings. Achieving
processing rates above 90 tons/day would also improve profitability of the operation since this
would reduce the amount of time required to exhaust the current resource, which should
theoretical result in a lower accumulated cost over time. Based on the material tonnage and
the current processing rate of the operation, it was calculated that the operation would require
approximately 65 days of processing in order to deplete the current resource.
At a daily operational cost of USD $793.80, 65 days of operation would run a cost of USD
$51,597.00. This is with the exclusion of the cost associated with the approximate 14 days of
preparatory work needed to setup the operation. In total, the operation would require about
80 days of work to setup and process the 5810.545 tons of tailings material necessary to
recover the contained gold values. The graphs in Figure 13 and Appendix IV show how, for the
operation functioning at specific efficiency levels utilizing minimum gold price estimate of
$1200 USD, the accumulated cost can affect profitable returns as time progresses. At each level
of recovery efficiency, there exists a fixed maximum amount of the resource than can be
recovered. Because of this, there is also a maximum return that can be generated from mining
the resource at a given time. However, as time progresses the incurrable cost of extracting the
mineral increases due to accumulation. As of such, the less time taken to mine the resource
the greater the profitable returns at that time period. At day 80 of operation, accumulated
operation cost is expected to be $63,504.00 USD. From the graph in Figure 13, it can be seen
that for the operation to span an 80 days period, a recovery percentage greater than or equal
to 60% is necessary to generate a profit. It is clear from this and other graphs in Appendix IV,
the less time taken to reprocess the tailings, the greater the profitable returns at the various
efficiency levels.
Page | 47
October, 2012

$100,000.00
US Dollars
$75,000.00
$50,000.00
$25,000.00
$0.00
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
DAYS
Accum. Cost
40% Efficiency
50% Efficiency
60% Efficiency
70% Efficiency
80% Efficiency
90% Efficiency
Figure 13: Profitability chart for operation at gold price $1200 USD/Oz
Page | 48
October, 2012

In section 6.3.1 of this report, the potential operating capacity of the circuit being employed
was indicated based on specifications for the equipment being utilized. It is estimated, the plant
should be capable at minimum, to process 170 ton of solid/day at a recovery efficiency of 80%.
At a processing rate of 170 ton/day, it is calculated, the plant would require 34 days of
processing to exhaust the current resource. This is almost half the time required at the current
processing rate. In total, the operation would require just about 40 days to setup and mine the
tailings dumps. The operational cost for 40 days will sum to $31,752 USD, half of that required
at 90 tons/day.
Page | 49
October, 2012

8 CONCLUSION
This study was aimed at investigating and evaluating tailings dumps within the Bangalee Creek
Area to determine whether they contained a sufficient gold resource for extracting through
reprocessing of the tailings material. Following the objectives set out in this report, the
following conclusions were derived:
Objective 1 and Objective 2
Ten tailings dumps were investigated for this research paper. Of the ten, seven were
considered mineralized based on fire assay analysis of tailings samples. Three Dimensional
grade distribution models of the tailings showed there was no significant trend in the zoning of
gold values within the tailings investigated. Samples detected of having gold values came from
various points and depth within the tailings. This could be due to the fact that miners generally
reposition the material from the tailings so as to keep it from building at the discharge point of
the sluice.
There exist an indicated mineral resource of 101.092 Oz of gold within 5810.545 tons of
tailings material spanning the seven tailings bodies.
Objective 3
The investigated tailings stockpiles have the potential to be profitably reprocessed for
contained gold resource, but only at acceptable operational levels. While sufficient in a high
efficiency circuit, the current processing rate of the plant of 90 ton/day is considerably low and
only produces marginal benefits. A total of 80 would be required at this processing rate to
setup the operation and mine the tailings. It was projected that this lengthy period would
accumulate, based on a daily operational cost of USD $793.80, an expense of $63,504.00 USD.
Based on this figure it was determined that operation would need to be at least 60% efficient in
mineral recovery for it to be profitable. However should the plant be able to operate at its
proposed high minimum capacity of 170 ton/day, the accumulated cost would only be $31,752
USD after the required 40 days of operation. As is clearly illustrated in Appendix IV, the return
Page | 50
October, 2012

after 40 days of operation is much more than that after 80 days. Recovery levels of at least 80%
are inferred based on researched equipment specifications. Once achieved, this would
considerably boost the profitability of the project.
Page | 51
October, 2012

9 RECOMMENDATIONS
1. A micro balance should be obtained for the laboratory to be used for weighting of beads
following fire assay. Currently the lab operates with a semi microbalance which is only
capable of reporting values to a minimum of 0.01 g.
2. Implementation of other sample analysis methods, such as Atomic Absorption

spectroscopy for detection of values below the detection limits of the fire assay method.
3. Sieve and material density analysis should be conducted to better inform the mining
method and processing plant setup.
4. The current processing circuit should be revised in light of metallurgical analysis in an
effort to optimize performance. A better performing processing plant would encourage
increased profitable returns.
5. Continued sampling and analysis of the remaining tailings within the Bangalee creek
area to expand the current resource.
Page | 52
October, 2012

10 REFERENCES
Books
1. Gibbs, A.K, Barron, C.N., (1993). The Geology of the Guiana Shield. Oxford University
Press, New York. [Accessed 6 December, 2011]
PDF Documents
2. 2003, Abbreviated Preliminary Assessment: Longshot Mine and Millsite. [pdf] Available
at www.fs.usda.gov/Internet/FSE_DOCUMENTS/fsbdev3_035008.pdf, [Accessed 11
December, 2011]
3. Body, K. and Lomberg, K. 2008, Elsburg Tailing Dams Complex: Independent Competent
Person Report. [pdf], RGS Global Consulting Pty Ltd. [pdf] Available at:
www.drd.co.za/b/files/Elsburg_cpr_report20aug08.pdf, [Accessed 6 December, 2011]
4. Fire River Gold, 2010, Fire River Gold Corp. Tailings Sampling/ Drill Program Averages
7.6 g/t Gold at Nixon Fork Gold Mine, Alaska [press release], Available at
www.firerivergold.com/i/pdf/040610FAU.pdf, [Accessed 6 December, 2011]
5. Fire River Gold, 2010, Fire River Gold Announces Update on Tailings Preliminary
Economic Assessment, Nixon Fork Gold Mine, Alaska [press release], Available at
www.firerivergold.com/i/pdf/061410FAU.pdf, [14 December, 2011]
6. Grunewald, W. and Makepeace, D. 2010, Technical Report on the Blackdome Mine
Tailing. [pdf]. Available at www.sonaresources.com/_.../NI_43101_Blackdome_Report_F1.pdf, [Accessed 11 December,2011]
7. Heesterman, L. 2008, Final Exploration Report on the Western Part of the Omai Mining
License PL 01/1997 for the period February 14th ,1997 to February 13th, 2005. [pdf], Omai
Gold Mines Limited. [Accessed 27 July,2011]
Page | 53
October, 2012

8. Kuchling, K., Adams, P., et al., (2011). Technical report on the Las Lagunas Gold Tailings
Project. [pdf], kj Kuchling Consulting Ltd, Available at
http://panterragold.com/userfiles/file/NI43101%20Technical%20Report%2031_12_2011/PanTerra%2043101%20Las%20Lagunas%2043-101%20Tech%20Report%20Dec%2031%202011.pdf, [14
December, 2011]
9. Lake Victoria Mining Company Inc., 2009, Lake Victoria Mining Companys Gold Tailing
Assays Average 2.75 Singida, Tanzania [press release], Available at
www.kilimanjarominingcompany.com/investors/news/2009/8-3.pdf, [6 December,
2011]
10. Lake Victoria Mining Company Inc., 2009, Lake Victoria Mining Company: 15 Additional
Gold Tailing Piles Average 3.03 Grams per Metric Ton [press release], Available at
www.infomine.com/index/pr/Pa790864.PDF, [6 December, 2011]
11. Mitchell, C. J. 1997, A Review of Gold Particle Size and Recovery Method.[pdf], Technical
Report WC/97/14, British Geological Survey
12. RGL, 2010, High Grade Copper-Gold Analysis Results for Burraga Tailing [press release],
Available at
http://www.republicgold.com.au/documents/announcements/522960_92846_High%20
Grade%20Copper-Gold%20Analysis%20Results%20Burraga%20Tailings.pdf, [10
December,2011]
Page | 54
October, 2012
APPENDIX 1
Sample point location maps for Tailings Stockpiles
[55]
October 2012
Figure 14: Sample point layout for tailing BTA
Figure 15:Sample point layout for tailing BTB
[56]
October 2012
Figure 16: Sample point layout for tailing BTC
[57]
October 2012
Figure 17: Sample point layout for tailing BTD
Figure 18: Sample point layout for tailing BTE
[58]
October 2012
Figure 19: Sample point layout for tailing BTF
Figure 20: Sample point layout for tailing BTG
[59]
October 2012
Figure 21: Sample point layout for tailing BTH
[60]
October 2012
Figure 22: Sample point layout for tailing BTI
Figure 23: Sample point layout for tailing BTN
[61]
October 2012
APPENDIX II
Table showing sample point data
[62]
October 2012
Table 7: Summary of Sample Data
Tailing
Pile 1
Pile 2
Tailing
Field ID
Sample
Tag No.
Tailing Coordinate
(PSAD 56)
BTA
1.1
1.2
2.1
2.2
3.1
4.1
952696
952697
952698
952699
952700
952701
21 N 0302671 0602883
"
"
"
"
"
5.1
6.1
952702
952703
"
"
7.1
7.2
NILL
8.1
8.2
952704
952705
952706
952707
952708
"
"
NILL
"
"
9
10
11
12.1
12.2
BTB
1.1
2.1
952709
952710
952711
952712
952713
"
"
"
"
"
952714
952715
21 N 0302646 0602883
"
Sample Description
Orange soil + gravel

Greyish clayey material - Slush
Orange soil + grey clayey slush
Thin orange soil layer followed
by greyish slush
Orange soil followed by greyish
slush
Clayey slightly slushy material
Sample Does not Exist
orange sandy soil
Greyish clayey material with
some sand
orange sandy soil
orange soil (thin) 0.2m
orange soil (thin) 0.2m
orange soil (thin) slush below
With sandy material + Gravel
thin layer orange soil + slush
orange soil + gravel + greyish
sandy soil
[63]
October 2012
From
To
Hole
Depth
Assay
Results
2
1
1
g/ton
0
0
0
0
0
0
1
1
3
0
0
1
0
1
0
0
1
2
1
2
1
1
0
0
1
1
0
1
1
2
0
1
1
2
0
0
0
0
1
1
1
1
1
2
1
1
1
2
0
0
NILL
0
3
4
0
0
0
0
0
0
2.2
952716
"
3.1
952717
"
4.1
952718
"
4.2
5.1
5.2
6.1
6.2
952719
952720
952721
952722
952733
"
"
"
"
"
7.1
7.2
7.3
952724
952725
952726
"
"
"
8.1
8.2
952727
952728
"
"
9
10
952729
952730
"
"
11.1
11.2
12.1
12.2
952731
952732
952733
952734
"
"
"
"
13.1
952735
"
grey sandy soil followed by grey

clayey material
orange to soil (0.5m) followed
by grey-white sandy soil + gravel
orange top soil (1ft) followed by
mud soil composite (0.5ft)
slushy material
orange soil
soft clayey material + gravel
orange soil + gravel
grey sandy material + gravel (3 ft
thick)
orange soil
white sandy soil + gravel
creamy soft clay continue from
above
grey white sand with slush
below
orange soil up, slush below
white sandy soil + gravel (0-2ft),
slushy sandy material + gravel(23ft)
white sand + gravel, slush below
white sandy soil with slush
below
white sandy soil(0-2 ft), sandy
clay + gravel, slush below
[64]
October 2012
0
0
0
0.5
0.5
0
0.3
0
0.3
1
0.3
0.6
0.3
1.22
0
0.6
1.12
0.6
1.22
1.52
0
0.6
0
1
1.22
0
0
0
0
0
1.52
0
0
0
0.6
1
0
0
0
0
0.45
1
0.45
1
0
0
0
0.6
0
0.6
0.6
1.22
0.6
1.22
1.22
0
0
0
0
0.6
1.22
1.22
0.6
1.22
Pile 3
Pile 4
BTC
1
952736
21 N 0302722 0602871
2
3
4
5.1
5.2
952737
952738
952739
952740
952741
"
"
"
"
"
6
7
BTD
1.1
1.2
1.3
2.1
952742
952743
"
"
952744
952745
952746
952747
21 N 0302733 060818
"
"
"
2.2
2.3
952748
952749
"
"
3.1
952750
"
4.1
952751
"
5.1
952752
"
5.2
952753
"
6.1
952754
"
soft clayey material (approx.

1ft), slushy material (1-1.5ft)
clayey slushy material
soft clay - tailing slush
grey-white sand + gravel
grey-white sand + gravel
soft clayey material - partially
slush
Sandy material with slush below
grey white sandy soil
0.76
0.76
0
0
0
0.6
0.5
1
0.6
1.22
1.22
0
0
0
0
0
0
0
0.6
0.45
0.6
0.45
0
0
orange soil
0
0.6
grey sandy clay material
0.6
0.91
wet slushy clay material
0.91
1.52
orange top soil followed by grey0
0.6096
white sand silt material
wet greenish clayey material
0.6096 1.2192
wet grey-white sand silt material 1.2192 1.8288
(possibly top soil material from
underlying surface)
orange top soil followed by grey0
1
white sand silt material
Orange + grey white soil, bottom
0
1
half wet
Thin orange top soil followed by
0
0.6096
wet grey-white sandy soil, clay
0.6096
1
below
Grey-white sandy soil
0
1
[65]
October 2012
0.5
1
1.52
0
0
4
2.67
1.82
0
0
0
0
0
3
Pile 5
6.2
952755
"
clayey material + gravel and

sand (wet)
Orange soil
grey white sandy clay + gravel
grey white sandy clay (wet)
grey white sandy clay (wet)
orange, grey white soil
Orange grey white sandy clay +
gravel (wet)
Orange grey white sandy soil
Grey white sandy soil + gravel
Grey white sand clay material
7.1
7.2
8.1
9.1
9.2
10.1
10.2
952756
952757
952758
952759
952760
952761
952762
"
"
"
"
"
"
"
11.1
12.1
12.2
BTE
1.1
952763
952764
952765
"
"
"
952766
21 N 0302702 0602818
grey white sandy soil + gravel
1.2
2.1
2.2
3.1
3.2
4.1
4.2
5.1
952767
952768
952769
952770
952771
952772
952773
952774
"
"
"
"
"
"
"
"
1
0
1
0
1
0
1
0
2
1
2
1
2
1
2
1
5.2
6.1
6.2
952775
952776
952777
"
"
"
7.1
952778
"

with clay below
(wet)
Grey white sandy material +
gravel
[66]
October 2012
0
0.6096
0.6096
1
0
0.5
0
0.6096
0.6096 1.524
0
1
1
2
0
1
0
0.6096
0.6096 1.524
1
2
0
0.6096
0.6096
2
0
1
0.5
1.524
2
1
1.524
4
0
0
0
0
0
0
0
0
0
0
0
2
2
2
2
2
2
0
0
0
0
0
0
0
0
0
0
0
0
Pile 6
7.2
952779
"
8.1
8.2
952780
952781
"
"
BTF
1.1
1.2
952782
952783
21 N 0302655 0602840
"
1.3
952784
"
2.1
952785
"
3.1
3.2
4.1
952786
952787
952788
"
"
"
5
6.1
4.2
952789
952790
952791
"
"
"
6.2
7.1
952792
952793
"
"
7.2
8.1
952794
952795
"
"
8.2
952796
"
9.1
952797
"
grey white sandy material with

some clay
orange colored soil + gravel
(wet )
orange and white sandy soil
orange and white sandy soil +
gravel
greenish colored sandy clay +
gravel
Greenish sandy clay, located 4 ft
below hole one. See diagram
grey white sandy material
grey white sandy material (wet)
grey white sand material +
gravel
grey white sand + gravel
grey white sand + gravel
grey white sandy material +
gravel
brown sandy material
orange and grey white sand +
gravel
greenish sandy clay material
orange and grey white sand +
gravel
greenish sandy clay (clay layer
below)
orange white sand material +
[67]
October 2012
0
0.3048
0.3048
2
0
1
1
2
0
0
1
0
0
0
0
0
3
0.6096 0.6096
1
2
1
2
1
0
0
0
0
0
0
0
1
0.6096 0.6096
1
2
2
3.67
0
0
1
0
2
0.6096
43.67
0
0.6096
0
1
1
0
0
Pile 7
9.2
9.3
10.1
10.2
11.1
952798
952799
952800
952801
952802
"
"
"
"
"
12.1
952803
"
13.1
952804
"
14.1
952805
"
15.1
952806
"
16.1
952807
"
BTG
1.1
952808
21 N 0302619 0602807
1.2
2.1
952809
952810
"
"
3.1
3.2
952811
952812
"
"
4.1
4.2
952813
952814
"
"
5.1
952815
"
gravel
greenish sand clay material
orange white sand
sandy clay material (clay layer
below)
grey white top soil followed by
sandy clay
grey white sandy material with
sandy clay below
grey white sandy soil with clay
material below
grey white sand with clay below,
followed by slush
grey white sand material +
gravel (wet)
top grey-white sand, clay
material below
clayey material
grey white sand followed by clay
slush below
green-gray clay material, slush
below
orange colored soil + gravel
greenish colored sandy clay
material
orange sandy soil
[68]
October 2012
1
2
0
1
0
2
2.7
1
2
1
2
1
0
0
0
0
0
1.5
1.5
2.7
1
0
1.2192 1.2192
1
1
0
0
0
1
1
1.2192 1.2192
0
0
0
1
1
2
0
0
2.83
Pile 8
5.2
5.3
6.1
952816
952817
952818
"
"
"
7.1
952819
"
8.1
8.2
8.3
9.1
952820
952821
952822
952823
"
"
"
"
9.2
9.3
10.1
10.2
11.1
12.1
BTH
1.1
952824
952825
952826
952827
952828
952829
"
"
"
"
"
"
952830
21 N 0302692 0602719
2.1
3.1
952831
952832
"
"
3.2
952833
"
4.1
952834
"
4.2
5.1
5.2
952835
952836
952837
"
"
"

grey clayey material (wet)
orange sandy top soil with sandy
clay below
orange sandy clay material , logs
below
orange sandy soil material
orange sandy top soil with clay
material below
orange grey sand clay material
orange grey material + gravel
orange sandy material
grey-green sand clay material
orange sandy material (wet)
orange grey sand clay material
orange soil with grey white clay
below
orange soil with clay below
orange soil with sandy clay
below
clayey material, grey-white sand
clay at top
orange soil with grey-white clay
material below
orange greyish clay material
orange grey-white sandy soil +
[69]
October 2012
1
2
0
0
2
3
1
3
1
0.6096 0.6096
2
0
1.3
0
0
1
2
0
1
2
3
1
1
2
0
1
0
0
2
2.7
1
1.7
1
1
1.7
1
1
0
0
0
0
0
0
0
0
0.762
1
0.762
0
0
1.5
1.5
1
0
1
2
1
1.7
2.7
0
0
0
0
0
2
1.7
0
0
0
6.1
6.2
6.3
952838
952839
952840
"
"
"
6.4
7.1
952841
952842
"
"
7.2
952843
"
8.1
8.2
9.1
9.2
952844
952845
952846
952847
"
"
"
"
10.1
952848
"
10.2
952849
"
11.1
952850
"
11.2
12.1
952851
952852
"
"
13.1
13.2
14.1
952853
952854
952855
"
"
"
14.2
952856
"
gravel
0
0.6096
grey-white sandy material
0.6096
1
grey-white sandy clayey material
1
2
(wet)
clayey material + sand material
2
2.1336 2.1336
orange soil with grey-white soil
0
1
below
1
2
2
+gravel
orange soil
0
1
grey-white soil material + gravel
1
2
2
orange soil
0
0.762
grey-white sandy material with
0.762
2
2
clay material
orange top soil followed by grey
0
1
white soil
grey greenish soil (clayey
1
2.5
2.5
material)
orange top soil with grey-white
0
1
material below
greenish clayey material
1
1.6
1.6
orange top soil followed by
0
1
1
sandy clay
orange sandy soil
0
1
orange sand clay material
1
1.7
1.7
orange sandy soil followed by
0
1.5
grey-white sandy material
orange colored sand clay
1.5
2
2
material
[70]
October 2012
0
0
0
0
0
0
0
0
0
5.3
2
4
0
0
0
0
3.4
0
0
Pile 9
15.1
15.2
952857
952858
"
"
16.1
16.2
17.1
17.2
BTI
1.1
1.2
952859
952860
952861
952862
"
"
"
"
952863
952864
21 N 302665 602701
"
1.3
2.1
952865
952866
"
"
2.2
952867
"
3.1
3.2
4.1
952868
952869
952870
"
"
"
4.2
5.1
5.2
6.1
6.2
7.1
7.2
8.1
8.2
9.1
952871
952872
952873
952874
952875
952876
952877
952878
952879
952880
"
"
"
"
"
"
"
"
"
"
Orange sandy soil

grey white sand with clay
material below
orange clayey material
greenish clayey material
0
1
1
2
0
1
0
1
1
1.5
1
2
orange sandy soil

grey white sandy soil with a
clayey mix below
sandy clay material + gravel
orange sandy soil, white sandy
soil below
orange clayey sand material +
gravel
grey with sand + gravel
grey white sand continue
orange sandy soil with grey
white sand below
brown sand
grey sand
0
1
1
2
2
0
3.5
1
3.5
0
0
1.5
1.5
0
1
0
1
2
1
0
0
0
1
0
1
0
1
0
1
0
1
0
2
1
2
1
1.5
1
2
1
2
1
greyish brown sand

brown sand
brown sand
greyish brown sand
brown sand
[71]
October 2012
1.5
2
0
0
0
0
0
0
0
0
2
2
1.5
2
2
0
2.5
3
0
0
0
0
0
0
0
Pile
10
9.2
10.1
10.2
11.1
11.2
12.1
13.1
14.1
15.1
16.1
BTN
952881
952882
952883
952884
952885
952886
952887
952888
952889
952890
"
"
"
"
"
"
"
"
"
"
1
2
3
4
5
6
6.2
7
7.2
8
9
10
10.2
11
952911
952912
952913
952914
952915
952938
952939
952940
952941
952942
952943
952944
952945
952946
21 N 302667 602739
"
"
"
"
"
"
"
"
"
"
"
"
"
greyish brown sand

greyish brown sand
greyish brown sand
grey sand
grey sand
greyish brown sand
1
0
1
0
1
0
0
0
0
0
2
1
2
1
2
1.5
0.75
1.5
1
0.75
Brown sand + quartz gravel

Brown sand
brown sand
0
0
0
0
0
0
1
0
1
0
0
0
1
0
1
1.2
1.5
1.5
1.2
1
2
1
2
1.5
1
1
2
1.5
[72]
October 2012
2
2
2
1.5
0.75
1.5
1
0.75
1
1.2
1.5
1.5
1.2
2
2
1.5
1
2
1.5
2
0
0
0
0
0
0
0
0
0
6
2.5
0
3
1
0
0
0
0
1
0
0
0
0
APPENDIX III
Gold Distribution Models of Tailings
Note that the outlines of the models do not necessarily represent the actual shape of the
tailings bodies.
[73]
October 2012
Figure 24: Gold Distribution Model for BTA
[74]
October 2012
Figure 25: Gold Distribution Model for BTD
[75]
October 2012
Figure 26: Gold Distribution Model for BTF
[76]
October 2012
Figure 27: Gold Distribution Model for BTG
[77]
October 2012
Figure 28: Gold Distribution Model for BTH
[78]
October 2012
Figure 29: Gold Distribution Model for BTI
[79]
October 2012
Figure 30: Gold Distribution Model for BTN
[80]
October 2012
APPENDIX IV
Operation profitability Charts
[81]
October 2012
40% RECOVERY AT 1200 USD/Oz

$70,000.00
$70,000.00
$60,000.00
$60,000.00
$50,000.00
$50,000.00
$40,000.00
$40,000.00
Profitable Production
Accum. Cost
$30,000.00
$30,000.00
$20,000.00
$20,000.00
$10,000.00
$10,000.00
$0.00
$0.00
5
10
15
20
25
30
35
40
45
50
55
Figure 31: Profitability Chart for the operation at 40% efficiency for gold at $1200 USD/Oz.
[82]
October 2012
60
65
70
75
80
US Dollars

$70,000.00
$70,000.00
$60,000.00
$60,000.00
$50,000.00
$50,000.00
$40,000.00
$40,000.00
$30,000.00
$30,000.00
$20,000.00
$20,000.00
$10,000.00
$10,000.00
$0.00
$0.00
5
10
15
20
25
30
35
40
45
50
55
Days
[83]
October 2012
60
65
70
75
80
Accum. Cost
$80,000.00
$80,000.00
$70,000.00
$70,000.00
$60,000.00
$60,000.00
$50,000.00
$50,000.00
$40,000.00
$40,000.00
US Dollars
US Dollars
Accum. Cost
$30,000.00
$30,000.00
$20,000.00
$20,000.00
$10,000.00
$10,000.00
$0.00
$0.00
5
10
15
20
25
30
35
40
45
50
55
Days
[84]
October 2012
60
65
70
75
80
$90,000.00
$90,000.00
$80,000.00
$80,000.00
$70,000.00
$70,000.00
$60,000.00
$60,000.00
$50,000.00
$50,000.00
$40,000.00
$40,000.00
$30,000.00
$30,000.00
$20,000.00
$20,000.00
$10,000.00
$10,000.00
$0.00
$0.00
5
10
15
20
25
30
35
40
45
50
55
Days
[85]
October 2012
60
65
70
75
80
US Dollars
US Dollars
Accum. Cost
$100,000.00
$100,000.00
$90,000.00
$90,000.00
$80,000.00
$80,000.00
$70,000.00
$70,000.00
$60,000.00
$60,000.00
$50,000.00
$50,000.00
$40,000.00
$40,000.00
$30,000.00
$30,000.00
$20,000.00
$20,000.00
$10,000.00
$10,000.00
$0.00
$0.00
5
10
15
20
25
30
35
40
45
50
55
60
Days
[86]
October 2012
65
70
75
80
US Dollars
US Dollars
Accum. Cost
$120,000.00
$120,000.00
$100,000.00
$100,000.00
$80,000.00
$80,000.00
$60,000.00
$60,000.00
US Dollars
Accum. Cost
$40,000.00
$40,000.00
$20,000.00
$20,000.00
$0.00
$0.00
5
10
15
20
25
30
35
40
45
50
55
60
Days
US Dollars
[87]
October 2012
65
70
75
80
APPENDIX V
Definition of Terms
[88]
October 2012
Inferred, Indicated and Measured Mineral Resource according to NI43-101
In this Instrument, the terms "mineral resource", "inferred mineral resource", "indicated
mineral resource" and "measured mineral resource" have the meanings ascribed to those
terms by the Canadian Institute of Mining, Metallurgy and Petroleum, as the CIM Definition
Standards on Mineral Resources and Mineral Reserves adopted by CIM Council, as those
definitions may be amended.
The terms Measured, Indicated and Inferred are defined by CIM (2005) as follows:
A Mineral Resource is a concentration or occurrence of diamonds, natural solid inorganic
material, or natural solid fossilized organic material including base and precious metals, coal
and industrial minerals in or on the Earths crust in such form and quantity and of such a grade
or quality that it has reasonable prospects for economic extraction. The location, quantity,
grade, geological characteristics and continuity of a Mineral Resource are known, estimated or
interpreted from specific geological evidence and knowledge.
The term Mineral Resource covers mineralization and natural material of intrinsic economic
interest which has been identified and estimated through exploration and sampling and within
which Mineral Reserves may subsequently be defined by the consideration and application of
technical, economic, legal, environmental, socio-economic and governmental factors. The
phrase reasonable prospects for economic extraction implies a judgment by the Qualified
Person in respect of the technical and economic factors likely to influence the prospect of
economic extraction. A Mineral Resource is an inventory of mineralization that under
realistically assumed and justifiable technical and economic conditions might become
economically extractable. These assumptions must be presented explicitly in both public and
technical reports.
Inferred Mineral Resource

An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade
or quality can be estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade continuity. The estimate is based on
[89]
October 2012
limited information and sampling gathered through appropriate techniques from locations such
as outcrops, trenches, workings and drill holes.
Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be
assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or
Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is
insufficient to allow the meaningful application of technical and economic parameters or to
enable an evaluation of economic viability worthy of public disclosure. Inferred Mineral
Resources must be excluded from estimates forming the basis of feasibility or other economic
studies.
Indicated Mineral Resource

An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape and physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the deposit. The estimate is
based on detailed and reliable exploration and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes
that are spaced closely enough for geological and grade continuity to be reasonably assumed.
Mineralization may be classified as an Indicated Mineral Resource by the Qualified Person

when the nature, quality, quantity and distribution of data are such as to allow confident
interpretation of the geological framework and to reasonably assume the continuity of
mineralization. The Qualified Person must recognize the importance of the Indicated Mineral
Resource category to the advancement of the feasibility of the project. An Indicated Mineral
Resource estimate is of sufficient quality to support a Preliminary Feasibility Study which can
serve as the basis for major development decisions.
[90]
October 2012
Measured Mineral Resource

A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shape, and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing
information gathered through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity.
Mineralization or other natural material of economic interest may be classified as a Measured

Mineral Resource by the Qualified Person when the nature, quality, quantity and distribution of
data are such that the tonnage and grade of the mineralization can be estimated to within close
limits and that variation from the estimate would not significantly affect potential economic
viability. This category requires a high level of confidence in, and understanding of, the geology
and controls of the mineral deposit.
[91]
October 2012

Reprocessing The Bangalee Creek Tailings - Jason Downes - 2012

Cargado por

Información del documento

Título original

Derechos de autor

Formatos disponibles

Compartir este documento

Compartir o incrustar documentos

Opciones para compartir

¿Le pareció útil este documento?

¿Este contenido es inapropiado?

Copyright:

Formatos disponibles

Reprocessing The Bangalee Creek Tailings - Jason Downes - 2012

Cargado por

Copyright:

Formatos disponibles

UNIVERSITY OF GUYANA

Reprocessing the Bangalee

Reprocessing the Bangalee Creek Tailings:

A Research Submitted by:

DEPARTMENT OF GEOLOGICAL ENGINEERING,

Reprocessing the Bangalee Creek Tailings:

Reprocessing the Bangalee Creek Tailings:

Thank you all.

Reprocessing the Bangalee Creek Tailings:

Omai Gold Mines Limited Final Report of West Omai ........................................... 7

Historic Mining Activities .......................................................................................... 8

Previous Work .................................................................................................................. 7

Review of other related literature .................................................................................. 11

Sona Resources Corp Blackdome Mine Tailings, British Colombia ...................... 11

Lake Victoria Mining Company, Singida, Tanzania ................................................. 11

Scope of Work ............................................................................................................. 12

Location and Access ....................................................................................................... 12

Geological Setting .......................................................................................................... 15

Regional Geology .................................................................................................... 15

Local Geology .......................................................................................................... 15

Methodology and Design Approach.............................................................................. 17

Data Acquisition ............................................................................................................. 17

Site Characterization ............................................................................................... 17

Sampling Strategy and Technique .......................................................................... 18

Sample Preparation and Laboratory Analysis ......................................................... 20

Data Analysis .................................................................................................................. 21

Reprocessing the Bangalee Creek Tailings:

Processing and Analysis of Downhole Data ............................................................ 21

Results and Analysis ..................................................................................................... 24

Calculation of Tailing Average Au Grade ....................................................................... 24

Mineral Resource Estimation ......................................................................................... 33

Operational Cost Estimation .......................................................................................... 38

Mining Method ....................................................................................................... 38

Cost Assessment ..................................................................................................... 41

Mineral Resource Evaluation.......................................................................................... 43

Reprocessing the Bangalee Creek Tailings:

Reprocessing the Bangalee Creek Tailings:

Figure 26: Gold Distribution Model for BTF .................................................................................. 76

Reprocessing the Bangalee Creek Tailings:

Reprocessing the Bangalee Creek Tailings:

Reprocessing the Bangalee Creek Tailings:

Reprocessing the Bangalee Creek Tailings:

Reprocessing the Bangalee Creek Tailings:

Finding: Bangalee Creek Alluvial Target

Reprocessing the Bangalee Creek Tailings:

3.1.2 Historic Mining Activities

Reprocessing the Bangalee Creek Tailings:

Reprocessing the Bangalee Creek Tailings:

Figure 2: Auger, Banka, Rock & Production Drill hole Summary

Reprocessing the Bangalee Creek Tailings:

3.2 Review of other related literature

Reprocessing the Bangalee Creek Tailings:

4.1 Location and Access

Reprocessing the Bangalee Creek Tailings:

Map 1: Omai Location Map

Reprocessing the Bangalee Creek Tailings:

Map 2: Location of Project Area

Reprocessing the Bangalee Creek Tailings:

Gibbs and Barron, 1993

Reprocessing the Bangalee Creek Tailings:

Map 3: Geological Summary of Omai. Map produced by Omai Gold Mines

Reprocessing the Bangalee Creek Tailings:

5 METHODOLOGY AND DESIGN APPROACH