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Technical Report

National Instrument 43-101


Standards of Disclosure for Mineral Projects

Should you find any discrepancies in the present document, the French version dated September 6 , 2005 prevails
t h

November 2005

TECHNICAL REPORT

National Instrument 43 - 101

SUMMARY

LIST OF FIGURES..................................................................................................................................... vii LIST OF TABLES........................................................................................................................................ ix 1.0 2.0 INTRODUCTION...............................................................................................................................1 DENIAL .............................................................................................................................................1

3.0 SITUATION GO-POLITIQUE..........................................................................................................1 3.1 Corporate Profile.........................................................................................................................2 3.2 Project Description and Location................................................................................................4 3.3 Project History ............................................................................................................................5 3.4 Mining Claims and Authorizations ..............................................................................................6 3.4.1. Legal Structure of Mining Claims ...........................................................................................6 3.4.2. Authorization to Initiate Mine Operations ...............................................................................7 3.4.3. Authorization to Operate (ICPE).............................................................................................8 3.4.4. Property and Surface Rights ..................................................................................................9 3.4.5. Additional Exploration Rights .................................................................................................9 4.0 GEOLOGY ......................................................................................................................................12 4.1.1 Mineralization .......................................................................................................................19

5.0 DEPOSIT GEOLOGY......................................................................................................................21 5.1 Unified Model............................................................................................................................21 5.2 Scout Zone................................................................................................................................21 5.3 CC-08 Zone ..............................................................................................................................21 5.4 CC-88 Zone ..............................................................................................................................22 6.0 EXPLORATION PROGRAM AND DATA COLLECTION................................................................26 6.1 Exploration Strategy .................................................................................................................26 6.1.1 Mapping................................................................................................................................26 6.1.2 Trenching..............................................................................................................................26 6.1.3 Ground Geophysics..............................................................................................................26 6.1.4 BRGM Soil Geochemistry Programs....................................................................................27 6.1.5 Drilling Programs ..................................................................................................................27 6.1.6 Targeted Soil Geochemistry.................................................................................................28 6.2 Data Collection .........................................................................................................................28 6.2.1. Soil Sampling........................................................................................................................28 6.2.2. BRGM Deep Augering..........................................................................................................29 6.2.3. Trenching..............................................................................................................................29 6.2.4. Percussion Drilling................................................................................................................29 6.2.5. Diamond Drilling ...................................................................................................................30 6.3 Data Storage and Manipulation ................................................................................................31 7.0 ASSAY RECONCILIATION.............................................................................................................32 7.1 Assaying Procedures................................................................................................................32 7.1.1. Assay Laboratories...............................................................................................................35 7.1.2. Duplicates and Standards ....................................................................................................36 7.1.3. Check Assay Program (QA/QC)...........................................................................................38 7.1.4. Pulp Duplicates.....................................................................................................................41 7.1.5. Coarse Reject Duplicates.....................................................................................................41
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7.1.6. Field Duplicates ....................................................................................................................43 7.1.7. Twinned Drill Holes ..............................................................................................................45 7.2 External Laboratories (Assay Precision Control)......................................................................46 8.0 ADDITIONAL POTENTIAL..............................................................................................................49 8.1 Future Resources in the Camp Caiman Area...........................................................................49 8.1.1 Nearby Extensions ...............................................................................................................49 8.1.2 Depth Extensions .................................................................................................................49 8.1.3 Regional Extensions.............................................................................................................50 8.1.4 SMBG and CBJ-France Permits ..........................................................................................50 9.0 ORE CHARACTERIZATION...........................................................................................................52 9.1 Gold Size and Distribution ........................................................................................................53 9.2 Metallurgical Testwork ..............................................................................................................54 9.2.1 Overview of Tests and Summary of Results ........................................................................54 9.2.2 Ore Characterization and Grindability ..................................................................................56 9.2.3 Gravity Concentration Testwork ...........................................................................................60 9.2.4 Cyanide Leach Testwork......................................................................................................61 9.2.5 Thickening and Sedimentation Testwork .............................................................................66 9.2.6 Miscellaneous Slurry Characteristics ...................................................................................67 9.2.7 Flotation Testwork ................................................................................................................68 9.2.8 Bio-oxidation/Pressure Oxidation Testwork .........................................................................70 9.2.9 Cyanide Detoxification Testwork ..........................................................................................71 9.2.10 Arsenic..................................................................................................................................74 10.0 MINERAL RESOURCES ESTIMATION .........................................................................................75 10.1 Geological Interpretation...........................................................................................................75 10.2 3D Modeling..............................................................................................................................75 10.3 Compositing ..............................................................................................................................76 10.4 Variography ..............................................................................................................................78 10.5 Mineral Resources....................................................................................................................79 10.5.1 Description Resource Estimation Parameters .....................................................................79 10.5.1.1 Geometry of the Block Model ...................................................................................... 79 10.5.1.2 Resource Estimation Parameters................................................................................ 80 10.5.1.3 Estimate Parameters ................................................................................................... 80 10.5.2 Specific Gravity.....................................................................................................................82 10.5.3 Mineral Resource .................................................................................................................82 11.0 MINING ...........................................................................................................................................87 11.1 General .....................................................................................................................................87 11.2 Geotechnical.............................................................................................................................87 11.3 Bulk Density of Mined Materials ...............................................................................................91 11.4 Conception of pits and equipment ............................................................................................91 11.4.1 Loading and Hauling Operations..........................................................................................91 11.4.2 Mining Roads and ramp design............................................................................................92 11.4.3 Waste Dumps .......................................................................................................................92 11.4.4 Maintenance equipment .......................................................................................................93 11.5 Infrastructure and Support Facilities.........................................................................................93 11.5.1. Heavy Equipment Shop........................................................................................................93 11.5.2. Warehouse ...........................................................................................................................93 11.5.3. Fuel Storage .........................................................................................................................94 11.5.4. Wash Bay .............................................................................................................................94 11.6 Mining Reserves .......................................................................................................................94 11.7 Production Schedule.................................................................................................................96 11.8 Capital Costs ..........................................................................................................................100

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11.9 11.10

Manpower ...............................................................................................................................102 Operating Costs......................................................................................................................106

12.0 PROCESSING ..............................................................................................................................110 12.1 Design Criteria ........................................................................................................................110 12.2 Process Flowsheet .................................................................................................................112 12.3 Plant Design and Location......................................................................................................114 12.4 Primary Crushing ....................................................................................................................115 12.5 Saprolite Feed System ...........................................................................................................117 12.6 Grinding ..................................................................................................................................117 12.7 Gravity Circuit .........................................................................................................................118 12.8 Thickener ................................................................................................................................118 12.9 Leach/CIP Circuit....................................................................................................................119 12.10 Carbon Stripping/Carbon Reactivation/Gold Refining ............................................................120 12.11 Reagent Storage Building.......................................................................................................122 12.12 Reagent Preparation...............................................................................................................122 12.13 Support Infrastructure .............................................................................................................125 12.14 Offices and Process Automation System ...............................................................................126 12.15 Mill Workshop .........................................................................................................................127 12.16 Manpower Requirement .........................................................................................................127 12.17 Operating Cost........................................................................................................................130 13.0 INFRASTRUCTURE AND SUPPORT FACILITIES......................................................................135 13.1 Site Access .............................................................................................................................135 13.1.1. North Access ......................................................................................................................136 13.1.2. South Access......................................................................................................................136 13.1.3. Site Roads ..........................................................................................................................137 13.2 Service Buildings ....................................................................................................................137 13.2.1. Administrative Building .......................................................................................................139 13.2.2. Heliport ...............................................................................................................................139 13.2.3. Heavy Equipment Shop and Warehouse ...........................................................................139 13.2.4. Fuel Storage .......................................................................................................................140 13.3 Municipal Works .....................................................................................................................141 13.3.1. Drinking Water....................................................................................................................141 13.3.2. Fire Protection ....................................................................................................................141 13.3.3. Waste Water Treatment Plant ............................................................................................141 13.3.4. Camp ..................................................................................................................................142 13.4 Cayenne Office .......................................................................................................................142 13.5 Permanent Housing ................................................................................................................142 13.6 Capital Costs ..........................................................................................................................142 14.0 ADMINISTRATION ET SERVICES...............................................................................................144 14.1 Organizational Structure .........................................................................................................144 14.1.1 Operating Workforce ..........................................................................................................144 14.2 General Services ....................................................................................................................146 14.2.1 General Management.........................................................................................................147 14.2.2 Corporate Expenses...........................................................................................................147 14.2.3 Accounting..........................................................................................................................147 14.2.4 Telecommunications ..........................................................................................................147 14.2.5 Environmental Management ..............................................................................................147 14.2.6 Human Resources..............................................................................................................148 14.2.7 Purchasing and Procurement.............................................................................................148 14.2.8 Health and Safety...............................................................................................................149 14.2.9 Public Security....................................................................................................................149 14.2.10 Housing and Cars...............................................................................................................149

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14.3 Transportation of Manpower and Materials ............................................................................150 14.3.1 Road Transportation...........................................................................................................150 14.3.2 Shipping..............................................................................................................................151 14.3.3 Air Transportation ...............................................................................................................152 14.3.4 Human Resource Requirements ........................................................................................152 14.4 Operating Costs......................................................................................................................154 15.0 ENVIRONMENTAL LEGISLATION AND WORK REGULATION .................................................156 15.1 Authorizations .........................................................................................................................156 15.1.1 Authorization for the Initiation of Mine Operations .............................................................156 15.1.2 Authorization to Operate a Mineral Processing Plant ........................................................159 15.1.3 Construction and Deforestation Authorization....................................................................161 15.1.4 Road Building Authorization ...............................................................................................162 15.2 Environmental Impact Study...................................................................................................162 15.2.1 Classified Installations........................................................................................................163 15.2.2 Initiation of Mine Operations...............................................................................................164 15.3 Danger Study..........................................................................................................................165 15.3.1 Classified Installations........................................................................................................165 15.3.2 Initiation of Mine Operations...............................................................................................166 15.4 Tailings and Water Management............................................................................................166 15.5 Geotechnical Investigations....................................................................................................169 15.5.1 Drilling and Sampling .........................................................................................................169 15.5.2 Tailings Site Characterization.............................................................................................170 15.5.3 Hydraulic Conductivity Test................................................................................................172 15.5.4 In-laboratory Testing Program............................................................................................173 15.6 Geological Model ....................................................................................................................174 15.6.1 Geological Characteristics of the Tailings Site...................................................................174 15.6.2 Local Stratigraphy ..............................................................................................................174 15.6.3 Structure .............................................................................................................................176 15.6.4 Laterization .........................................................................................................................176 15.6.5 Tailings Impoundment Evaluation ......................................................................................176 15.7 Natural Hazard Assessment ...................................................................................................177 15.7.1 Flooding..............................................................................................................................177 15.7.2 Seismic Activity and Ground Motion ..................................................................................178 15.7.3 Lightning .............................................................................................................................179 15.7.4 Cyclones.............................................................................................................................179 15.7.5 Forest Fires ........................................................................................................................179 15.7.6 Dam Failure ........................................................................................................................179 15.8 Thickened Tailings Production................................................................................................180 15.8.1 Location ..............................................................................................................................180 15.8.2 Design Criteria....................................................................................................................181 15.8.3 Process Flowsheet .............................................................................................................181 15.9 Thickened Tailings Pumping...................................................................................................182 15.9.1 Pumping System ................................................................................................................182 15.9.2 Piping..................................................................................................................................182 15.10 Management of Thickened Tailings........................................................................................182 15.10.1 Design Criteria....................................................................................................................184 15.10.2 Closure and Restoration Plan ............................................................................................186 15.10.3 Tailings Management .........................................................................................................187 15.10.4 Deposition Area Development............................................................................................188 15.10.5 Fill Plan Discussion .........................................................................................................190 15.10.6 Typical Stages in Cell Life ..................................................................................................192 15.11 Dam Design ............................................................................................................................193 15.11.1 General...............................................................................................................................193 15.11.2 Design Criteria....................................................................................................................193

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15.11.3 Details and Comments .......................................................................................................196 15.11.4 Geometry and Materials .....................................................................................................196 15.11.5 Settlement ..........................................................................................................................197 15.11.6 Stability ...............................................................................................................................197 15.11.7 Fill Volumes ........................................................................................................................199 15.11.8 Instrumentation...................................................................................................................200 15.12 Tailings Characteristics...........................................................................................................200 15.13 Closure of the Thickened Tailings Deposition Area ...............................................................200 15.13.1 General...............................................................................................................................200 15.13.2 Cell Closure ........................................................................................................................200 15.13.3 Spillways.............................................................................................................................201 15.14 Mine Tailings Purification Plant ..............................................................................................203 15.14.1 Cyanide Detoxification........................................................................................................203 15.14.2 . Arsenic Precipitation.........................................................................................................204 15.14.3 Detoxification Plant Control ................................................................................................204 15.15 Tailings Pumping ....................................................................................................................205 15.15.1 Pumping System ................................................................................................................205 15.15.2 Piping..................................................................................................................................205 15.16 Water Balance ........................................................................................................................206 15.16.1 Process and Service Water................................................................................................208 15.16.2 Reclaim Water ....................................................................................................................209 15.16.3 Drinking Water....................................................................................................................209 15.16.4 Pit Dewatering Water .........................................................................................................209 15.16.5 Runoff .................................................................................................................................210 15.16.6 Final Effluent.......................................................................................................................210 15.16.7 Operating Costs..................................................................................................................211 16.0 CONSTRUCTION SCHEDULE AND MANAGEMENT .................................................................212 16.1 Management Methodology .....................................................................................................212 16.2 Engineering.............................................................................................................................212 16.2.1 Road Engineering...............................................................................................................212 16.2.2 Infrastructure Engineering ..................................................................................................212 16.2.3 Geotechnical Engineering ..................................................................................................213 16.2.4 Electrical and Automation Engineering ..............................................................................213 16.3 Procurement ...........................................................................................................................213 16.3.1 Longueuil Administrative Office..........................................................................................214 16.3.2 Houston Purchasing Department .......................................................................................214 16.3.3 Cayenne Office and Site ....................................................................................................214 16.4 Construction Management......................................................................................................214 16.4.1 Administrative Office Team ................................................................................................214 16.5 Field Team ..............................................................................................................................216 16.5.1 Technology Transfer ..........................................................................................................216 16.6 Project Schedule.....................................................................................................................216 16.6.1 Year 2005 ...........................................................................................................................218 16.6.2 Year 2006 ...........................................................................................................................218 16.6.3 Year 2007 ...........................................................................................................................218 16.7 Construction Manpower..........................................................................................................218 16.8 Indirect Costs..........................................................................................................................221 16.9 Contingency............................................................................................................................223 17.0 OPERATING COST ESTIMATE ...................................................................................................224 17.1 Operating Costs......................................................................................................................224 17.2 Capital Expenditures...............................................................................................................226 17.3 Preproduction Expenditures ...................................................................................................226 17.4 Production Expenditures.........................................................................................................229

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17.5 Closure and Rehabilitation Plan .............................................................................................231 17.5.1 Introduction.........................................................................................................................231 17.5.2 Rehabilitation Goals ...........................................................................................................231 17.5.3 Closure and Rehabilitation Criteria.....................................................................................232 17.5.4 Closure of the Various Project Elements ...........................................................................233 17.5.5 Revegetation Trials ............................................................................................................240 17.5.6 Post-Closure Plan ..............................................................................................................241 17.5.7 Timetable and Costs ..........................................................................................................242 18.0 FInancial Analysis .........................................................................................................................247 18.1 Methodology and Parameters ................................................................................................247 18.1.1 Gold Price...........................................................................................................................247 18.1.2 Cost of Electricity................................................................................................................248 18.1.3 Fuel Price ...........................................................................................................................248 18.1.4 /US$ Exchange Rate........................................................................................................250 18.2 Taxation ..................................................................................................................................250 18.2.1 Direct Taxation ...................................................................................................................251 18.2.2 Income Taxes and Indirect Taxes ......................................................................................251 18.3 Government Aid......................................................................................................................254 18.4 Economic Analysis..................................................................................................................255 18.4.1 Cash Flow Analysis ............................................................................................................255 Capital Costs.....................................................................................................................................255 Working Capital.................................................................................................................................256 Residual Value..................................................................................................................................256 Closure and Rehabilitation................................................................................................................256 18.4.2 Internal Rate of Return .......................................................................................................259 18.4.3 Payback Period ..................................................................................................................259 18.5 Sensitivities .............................................................................................................................259 19.0 MARKETS AND CONTRATS .......................................................................................................264

20.0 CONCLUSION AND RECOMMENDATION..................................................................................265 20.1 Conclusion ..............................................................................................................................265 20.2 Recommendation....................................................................................................................266 21.0 22.0 23.0 BIBLIOGRAPHY............................................................................................................................267 APPROVAL AND SIGNATURES..................................................................................................268 CERTIFICATES OF QUALIFICATIONS .......................................................................................269

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LIST OF FIGURES
Figure 3.1 Location of French Guiana in South America............................................................................. 1 Figure 3.2 Cambior Society.......................................................................................................................... 3 Figure 3.3 Permit Location and Geological Context .................................................................................. 10 Figure 4.1 Camp Caiman Project Plan View and Geology ........................................................................ 14 Figure 4.2 Camp Caiman Project 3D Geology........................................................................................... 15 Figure 4.3 Camp Caiman Project 3D Mineralized Zones .......................................................................... 16 Figure 4.4 Camp Caiman Project Mineralized Zone.................................................................................. 17 Figure 5.1 Camp Caiman Project Section 300NW, SCOUT Zone............................................................. 23 Figure 5.2 Camp Caiman Project Section 450SE, CC-08 Zone ................................................................ 24 Figure 5.3 Camp Caiman Project Section 925SE, CC-88 Zone ................................................................ 25 Figure 7.1 Assay Procedure Flowsheet ..................................................................................................... 34 Figure 7.2 Camp Caiman Project QA/QC Program ................................................................................... 40 Figure 8.1 Camp Caiman Project Location Plan........................................................................................ 51 Figure 12.1 Schematic Flowsheet............................................................................................................. 113 Figure 12.2 Plan 604-D-101..................................................................................................................... 116 Figure 13.1 Camp Caiman Access Road.................................................................................................. 135 Figure 13.2 General Service Building Layout .......................................................................................... 138 Figure 14.1 Organigram ............................................................................................................................ 145 Figure 15.1 Authorization procedure for mine development..................................................................... 158 Figure 15.2 Authorization procedure for operation of an ICPE................................................................. 160 Figure 15.3 Plan 805-G-0147-OC............................................................................................................. 168

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Figure 15.4 Saprock Size Distribution Curbs Summary .......................................................................... 171 Figure 15.5 Geological Tailing Site .......................................................................................................... 175 Figure 15.6 Tailings Deposition Method ................................................................................................... 184 Figure 15.7 Deposition Model .................................................................................................................. 191 Figure 15.8 Deposition Area and Flow of Surface Water after Restoration............................................. 202 Figure 15.9 Camp Caiman Water Balance .............................................................................................. 207 Figure 16.1 Administrative Office Team................................................................................................... 215 Figure 16.2 Field Team ............................................................................................................................ 217 Figure 16.3 Manpower and cumulative manhours for Camp Caiman construction project..................... 220 Figure 17.1 Life of Tailings Pond Cells Year -2 .................................................................................... 235 Figure 17.2 Life of Tailings Pond Cells Year -1 .................................................................................... 236 Figure 17.3 Life of Tailings Pond Cells Year 1 ..................................................................................... 237 Figure 17.4 Life of Tailings Pond Cells Year 3 ..................................................................................... 238 Figure 18.1 Gold Price in US$ and ....................................................................................................... 248 Figure 18.2 Diesel Fuel and Crude Oil Prices.......................................................................................... 250 Figure 18.3 Sensitivity: Rate of Return .................................................................................................... 261 Figure 18.4 Sensitivity: Present Value Discounted at 8%........................................................................ 262

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LIST OF TABLES
Table 4.1 Camp Caiman Project Weathering Profile ................................................................................. 18 Table 6.1 Summary of Camp Caiman Drilling Programs........................................................................... 27 Table 6.2 Holes Drilled in the Mineralized Zone ........................................................................................ 31 Table 7.1 Control Standard Statistics (g/t) ................................................................................................. 37 Table 7.2 Check Assay Results ................................................................................................................. 38 Table 7.3 Summary of Reassays Performed by CGL in 1997-1998 ......................................................... 42 Table 7.4 Summary of Reassays Performed by SGS in 1998-2000 ......................................................... 42 Table 7.5 Summary of Reassays Performed by Filab in 2002-2005 ......................................................... 43 Table 7.6 Summary of Field (Percussion Drilling) Duplicate Assays by CGL and Filab............................ 44 Table 7.7 Summary of Field Duplicates (Diamond Drilling) Assayed by CGL in 1998 .............................. 45 Table 7.8 Checks Between CGL and SGS in 1998 ................................................................................... 46 Table 7.9 Checks Between SGS and CGL in 1998-2000.......................................................................... 47 Table 7.10 Checks Between Filab and ALS-Chemex, 2002-2005 ............................................................ 48 Table 9.1 Recovery Versus Grind Size Composite Sample 1 ................................................................ 53 Table 9.2 Bond indice (LR 9712089) ......................................................................................................... 56 Table 9.3 Comparative Results Coarse Material Content ...................................................................... 56 Table 9.4 Work Index Comparison Mill Rod ........................................................................................... 57 Table 9.5 Comparison of Ball Mill Work Indices ........................................................................................ 58 Table 9.6 Comparative Assessment Saprolite Lumping Effect .............................................................. 59 Table 9.7 Work Indice Determined ............................................................................................................ 59 Table 9.8 Gravity Concentration (Knelson et Mozley) ............................................................................... 60

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Table 9.9 Overall Recovery GRG .............................................................................................................. 61 Table 9.10 Zone 88 Saprolite Gravity/Cyanidation Gravity Tailings (1999)......................................... 62 Table 9.11 Zone Scout Saprolite Gravity/Cyanidation Gravity Tailings (1999) ................................ 62 Table 9.12 Cyanidation Saprolite composite (2004)............................................................................... 63 Table 9.13 Gravity Separation/cyanidation testwork Sulfides (1998) ..................................................... 64 Table 9.14 Recovery vs grind size Sulfides (1998) ................................................................................ 65 Table 9.15 Recovery vs grind size Transition P2391B (1997) ............................................................ 65 Table 9.16 Sedimentation static testwork (1999).................................................................................... 66 Table 9.17 Sedimentation High rate thickening testwork........................................................................ 67 Table 9.18 Flotation Collector and Depressant Assessment..................................................................... 69 Table 9.19 Calcite Depressant Assessment .............................................................................................. 70 Table 9.20 Oxidation and Cyanidation Ore and Flotation Concentrates ................................................ 71 Table 9.21 Cyanide Detoxification Direct Cyanidation............................................................................ 73 Table 9.22 Cyanide Detoxification Oxidation Tailings + Flotation Tailings ............................................. 74 Table 9.23 Cyanide Detoxification Results ................................................................................................ 74 Table 10.1 5 meter Composite gold value stastistic .................................................................................. 77 Table 10.2 Modeled Correlograms for Camp Caiman Scout and CC-08 + CC-88 Zones......................... 78 Table 10.3 Camp Caiman Interpolation spherical ID3, April 2005............................................................. 81 Table 10.4 Summary of Densities by Lithology.......................................................................................... 82 Table 10.5 In-Situ Camp Caiman Resources Classified by Material Type................................................ 84 Table 10.6 Camp Caiman In-situ Resources Classified by Zone .............................................................. 85 Table 10.7 Camp Caiman in situ measured and indicated resources per area......................................... 86

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Table 11.1 Lerchs-Grossman Optimization Parameters............................................................................ 90 Table 11.2 Material Properties by Rock Type............................................................................................ 91 Table 11.3 Camp Caiman Reserves by Pit and Rock Type ...................................................................... 95 Table 11.4 Tonnage Mined from Pits......................................................................................................... 97 Table 11.5 Tonnage Mined from CC-88 Pit ............................................................................................... 97 Table 11.6 Tonnage Mined from the Scout Pit .......................................................................................... 98 Table 11.7 Mine to Mill ............................................................................................................................... 98 Table 11.8 Stockpile Status ....................................................................................................................... 99 Table 11.9 Mine Capital Expenditures ($ US).......................................................................................... 101 Table 11.10 Manpower Requirements by Departments .......................................................................... 103 Table 11.11 Operation Manpower Requirements.................................................................................... 104 Table 11.12 Maintenance Manpower Requirements ............................................................................... 105 Table 11.13 Mine Operating Budget by Activity....................................................................................... 107 Table 11.14 Mine Operating Budget per tonne........................................................................................ 108 Table 11.15 Unit Costs by Rock Type ..................................................................................................... 109 Table 12.1 Mill Availability........................................................................................................................ 110 Table 12.2 Production .............................................................................................................................. 111 Table 12.3 Manpower Planning - Mill....................................................................................................... 129 Table 12.4 Mill Production Summary ....................................................................................................... 131 Table 12.5 Mill Operating Cost Summary ................................................................................................ 132 Table 12.6 Mill Consumables per Feed Type .......................................................................................... 133 Table 12.7 Costs per Type of Ore Life of Mine..................................................................................... 134

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Table 13.1 Infrastructure and Auxiliary Facilities Capital Cost Estimate .............................................. 143 Table 14.1 CBJ-CAIMAN Manpower Summary..................................................................................... 146 Table 14.2 CBJ-CAIMAN - Manpower ..................................................................................................... 153 Table 14.3 General Services and Administration Operating Budget by Activity...................................... 155 Table 15.1 Thickened Tailings Design Criteria ........................................................................................ 181 Table 15.2 Design Criteria Tailing Production ...................................................................................... 185 Table 15.3 Main Development Phases .................................................................................................... 189 Table 15.4 Principal Characteristics of teh Dams and Berms ................................................................. 195 Table 15.5 Estimated fill quantities (m3) .................................................................................................. 199 Table 15.6 Summary of Cyaide Detoxification (SO2/AIR) Testwork ........................................................ 204 Table 15.7 Estimate of volumes of water from runoff and seepage ........................................................ 208 Table 15.8 Estimate of Runoff and Seepage Water Volumes from the Waste Dumps ........................... 210 Table 16.1 Summary of indirect costs...................................................................................................... 221 Table 17.1 Operating costs ...................................................................................................................... 225 Table 17.2 Operating costs by currency .................................................................................................. 226 Table 17.3 Pre-production Expenditure ................................................................................................... 227 Table 17.4 Pre-production Expenditure ................................................................................................... 230 Table 17.5 Restauration surfaces ............................................................................................................ 244 Table 17.6 Dismantling ............................................................................................................................ 245 Table 17.7 Rehabilitation Costs (US$)..................................................................................................... 246 Table 18.1 On Site Composition of Gazole Price .................................................................................... 249 Table 18.2 CBJ-CAIMAN Production Calendar ....................................................................................... 257

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Table 18.3 Monetary Flux ........................................................................................................................ 258 Table 18.4 Actual Value (k US$).............................................................................................................. 259 Table 18.5 Parameter Variance ............................................................................................................... 260 Table 18.6 Risk Summary........................................................................................................................ 263

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1.0 INTRODUCTION

The feasibility study for the Camp Caiman project in French Guiana was carried out by the CBJ-CAIMAN project team together with Cambiors Projects and Construction group, supported by independent consultants retained for specific technical and financial issues. The various groups that assisted Cambior on this project, along with their fields of activity and specialties, are shown in the following table:

Mineral resource estimate:

Cambior business development and exploration Geology department, OMAI Gold Mines Ltd.

Mining reserves:

Project technical team Qualified person, Cambior Inc. Technical Services

Mine plan:

Project technical team

Capital and operating costs:

Cambior Inc. Projects and Construction Group Project technical team

Pit slope stability: Hydrogeology, soil bearing capacity, Waste dump stability, ground water analysis: Metallurgical testwork:

Golder Associates Inc., Denver, Colorado USA. Golder Associates Inc., Montral, Qubec, Canada

AMTEC, Australia Bateman Minerals, Australia Dawson Metallurgical Laboratories Limited, Australia Goldfield, South Africa INCO Technical Services, Ontario, Canada Jack Irvine, Ontario, Canada Lakefield Research Limited, Ontario, Canada Pacock Industrial, Australia

Metallurgical process:

Met-Chem Inc. Montral, Qubec, Canada

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Tailings paste process: Tailings cells and settling ponds:

Golder Paste Technology, Sudbury, Ontario Golder Associates Inc., Montral, Qubec, Canada

Review of design and tailings storage methods: C.O. Brawner Engineering, Vancouver, Canada Permit applications for ICPE and Initiation of mine operations: Apave, France ALTOA, Cayenne, French Guiana ANTEA Antille-Guyane, Cayenne, French Guiana B. Bordenave Consultance, Trgunc, France BRGM, Cayenne, French Guiana Cabinet ECOBIOS, Cayenne, French Guiana Defos du Rau, Cayenne, French Guiana meraude, Cayenne, French Guiana FUGRO Gotechnique, Cayenne, French Guiana G.A. Borstad Associates Ltd, Sidney, BC, Canada GAIA Hydrobiologie, St-Sulpice sur Lze, France GEOHYD, Cayenne, French Guiana Goplus Environnement, Gardouch, France GEOREM, Chizeuil, France Golder et Associs, Montral, Qubec Golder Associates, London, Ontario, Canada Hydreco, Kourou, French Guiana INERIS, Verneuil-en-Halatte, France Institut Pasteur, Cayenne, French Guiana IRD, Cayenne, French Guiana Laboratoires Filab, Cayenne, French Guiana Laboratoires Filab, Chenve, France Laboratories Wolff Environment, Evry, France LGIT, Grenoble, France NRAP, French Guiana ONF, Cayenne, French Guiana Royal Haskoning, Villeneuve dAsq, France Saunier et Associs, Lille, France SGS, Accra, Ghana URSTM, Rouyn-Noranda, Qubec, Canada

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Access road: French Guiana taxation:

ALTOA, Cayenne, French Guiana Bobrie Conseil, Cayenne, France Ernst and Young, Toulouse, France OGEFA, Cayenne, France PWC, Montral, Canada and Paris, France

Power generation: Human resources:

Kaehnee, Vancouver, Canada Bobrie Conseil, Cayenne, France

This feasibility study sets out in detail the mining and mineral processing operation, support activities and capital and operating costs required to develop the Camp Caiman project. It describes the mining reserves and mineral resources, the mining plan, the metallurgical process and the tailings storage methods, as well as water treatment, the mine infrastructure and finally, the environmental considerations that apply to the operation in relation with the requirements in French Guiana. This document also presents the schedules and the capital and operating costs, within a 10% margin of error. All costs shown are in US dollars; the following exchange rates were used in the third quarter of 2005: 1 US dollar = 0.833 Euros 1 US dollar = 1.25 Canadian dollars All data discussed in this document supports the technical success of the Camp Caiman project. This Technical Report 43-101 recapitulates the information and the results of the feasibility study of CBJCaiman. The feasibility study of the project and the documents are available for a review at the Cambiors offices in Longueuil. This report also contains the information which had not been verified and reviewed during the feasibility study of CBJ-CAIMAN, but which was finished and subjected to the Government of French Guyana. The information has been reviewed and verified since and is included in this report.

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2.0 DENIAL

This report is based on the information contained in the feasibility study of CJB-CAIMAN INC.S as well as on councillors' reports supporting the feasibility study. The authors compiled the information contained in this report from these sources. A review and verification beyond the feasibility study was not executed.

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3.0 SITUATION GO-POLITIQUE

Camp Caiman is a gold project indirectly owned by Cambior Inc. (Cambior). Prior to August 2002, the project was owned by Asarco Inc. (Asarco) through its French Guiana subsidiary, Asarco Guyane Franaise SARL (AGF). The project lies 45 kilometres (km) southwest of Cayenne, the main city in French Guiana, and is accessible by road. French Guiana has been a French overseas dpartement (dpartement doutre-mer, or DOM) since 1946, and as such is subject to French and European law. It is located in northeastern South America, and shares a border with Suriname to the west and Brazil to the east and south (Figure 3.1). French Guiana occupies an area of about 84,000 square kilometres (km2), 95% of which is covered by humid tropical forest. The country has a censured population of about 157,000 inhabitants, most living along the coast. The capital Cayenne itself has a population of about 51,000, with a total of about 84,000 people living in the greater Cayenne area, which includes the adjacent communities of Rmire-Montjoly and Matoury.

Ocan Atlantique

Amrique du Sud

Georgetown
GUYANA

Paramaribo

OMAI

ROSEBEL

Cayenne CAMP CAMAN


GUYANE FRANAISE
200

SURINAME
0 km

Location of French Guiana in South America Figure 3.1

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French Guianas GNP is about US $1 billion, and inflation runs at around 2.5%. All transactions are conducted in Euros. The town of Kourou, northwest of Cayenne, is the launch site for Ariane rockets and the site of Europes Spaceport. The space industry is the French Guianas leading economic activity, followed by gold mining. The mining industry consists primarily of small and medium-sized placer operations, with a large number of illegal sites. Declared production is in the order of 3.5 tonnes (112,500 ounces) per year, with true production estimated at over 10 tonnes (321,500 ounces). Shrimping, lumber and tourism also contribute to the Guianese economy, which is nonetheless heavily supported by both Paris and Brussels under a six-year national and European subsidy agreement (contrat de plan tat-Rgion). Air France has daily flights between Paris and Cayenne, and there are regular flights to Miami, the Antilles and Brazil.

3.1 Corporate Profile The Camp Caiman project is owned by CBJ-CAIMAN, a simplified form of incorporation (socit par actions simplifie, or SAS) with a share capital of 6,010,500, registered in December 2004 as the transformation of AGF, a limited liability company (Socit Responsabilit Limite, or SARL). The head office of CBJ-Caiman is located at PK 6,5 Route de Montjoly, Chemin Poupon, 97354 Rmire-Montjoly in French Guiana. The sole shareholder of CBJ-CAIMAN S.A.S. (CBJ-CAIMAN) is CBJ-FRANCE, an SAS with a share capital of 270,000, registered in December 2004 as the transformation of SARL CBJ-France. The head office of SARL CBJ-France is at PK 6,5 Route de Montjoly, Chemin Poupon, 97354 Rmire-Montjoly in French Guiana.

CBJ-FRANCE S.A.S. (CBJ-France) is 92.6% owned by Ariane Holdings (Barbados) Inc., a company incorporated in Barbados and wholly-owned by CBJ Caiman Inc. (a Canadian company), and 7.4% owned by CBJ Caiman Inc., which is in turn wholly-owned by Cambior (Figure 3.2).

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Cambior inc. (Canada) 100 % CBJ Caiman inc. (Canada) 100 % Ariane Holdings (Barbados) Inc. (Barbade) 7,4 % 92,6 % CBJ-France S.A.S. (Guyane franaise )

100 %

CBJ-Caiman S.A.S. (Guyane franaise)

Figure 3.2

Procedures are presently underway to eliminate Ariane Holdings Barbados and CBJ Caiman Inc. by transferring the Barbados Company to Canada and merging the two companies with their parent, Cambior Inc. This will simplify the French subsidiarys corporate structure and accounting procedures, as well as the fiscal fees and perhaps the defiscalization process with French fiscal authorities. These changes should be completed by the end of the fiscal 2005.

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For all intents and purposes, CBJ-CAIMAN and CBJ-FRANCE are wholly-owned subsidiaries of Cambior. Cambior is an international mining company created in 1986 through the privatization of mining assets in Quebec. It is based in Qubec and has six producing mines: five gold mines (three in Quebec, one in French Guiana and one in Suriname) that produced 694,000 ounces (nearly 22 tonnes) of gold in 2004 and a large niobium mine in Quebec (Niobec), as well as a 70% interest, through a subsidiary, in Omai Bauxite Limited, a bauxite mine located in Linden, French Guiana. Cambior also has numerous exploration projects in Canada, the United States, Peru and the Guiana Shield. At this time, Cambior employs almost 2,700 people, more than 60% in the Guiana Shield. All Cambior mines are certified under the ISO 14001 environmental standard. Cambior shares trade on the Toronto Stock Exchange (TSX) and the American Stock Exchange (AMEX) under the symbol CBJ. Its warrants (CBJ.WT.C and CBJ.WT.D) are listed on the TSX.

3.2 Project Description and Location The Camp Caiman gold project consists of three contiguous exclusive exploration permits (permis exclusifs de recherches, or PER) covering a total area of 71 km2, including the 30 km2 Camp Caiman mining concession. The Camp Caiman gold project is in the Roura commune, 45 km south-southeast of Cayenne as the crow flies, in the DOM of French Guiana (). The project is accessed by about 65 km of paved road from Cayenne: first the RN-2 from Cayenne to Regina, then the CD6 from the town of Roura to the village of Kaw, and finally in a 4x4 vehicle over a five kilometre logging road. The project lies at the base of the southwest slope of Kaw Mountain, a 310 metre (m) high, 40 km long hill. An unpaved access road about 16.6 km long from the RN-2 (Piste Sud) should be functional by the end of 2006. The local environment is humid tropical forest with average temperatures of about 29C during the day and 23C at night. Kaw Mountain is the first obstacle met by clouds coming in from the Atlantic Ocean. This is therefore one of the rainiest areas of French Guiana, with rainfall averaging 4,118 millimetres (mm) (average 1998 to 2003) and reaching a maximum of 5,678 mm in 2000. Rainfall is mainly concentrated in the rainy season, from December to June. The Camp Caiman area, like the rest of French Guiana, is not in a seismic zone and is not affected by hurricanes.

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3.3 Project History The Camp Caiman project is a direct result of the French Guianas mining inventory, created by the Bureau de recherches gologiques et minires (BRGM) between 1975 and 1995 for the Ministry of Industry. The Camp Caiman area was put up for public auction by the French state through the Regional Bureau of Industry, Research and the Environment (Direction Rgionale de lIndustrie, de la Recherche et de lEnvironnement, or DRIRE) in 1994. In competition with numerous other companies, AGF, at the time a subsidiary of the American company Asarco, submitted the winning bid. Two contiguous exploration permits, Camp Caiman Est and Ouest, were initially granted in July 1995 for a two-year period, renewable twice. Three other permits, Camp Caiman Trsor, Trsor Est and Trsor Ouest, were granted in January 1998. The remaining permit, Camp Caiman Patawa, was granted on March 10, 1999. These permits were subsequently reduced and merged to form three contiguous PER with a total surface area of 71 km2, described in the next chapter. Work by BRGM at Camp Caiman consisted of soil geochemistry programs that identified a large, seven kilometre gold anomaly. From 1996 to 1999, intensive drilling (diamond and reverse circulation totalling over 55,600 m in 544 holes) by AGF resulted in the identification of two significant primary gold deposits. mining concession within the exploration permits was filed in April 1999. The acquisition of Asarco by Mexican mining company Grupo Mexico, S.A. de C.V. in 1999 brought about a change in the new structures corporate objectives for French Guiana and its commitment to the Camp Caiman project. The mining concession application was allowed to go dormant. A small drilling program was carried out in 2,000 (4,180 m in 47 holes) and the Camp Caiman project was put up for sale. In August 2002, a junior mining company, Ariane Gold Corp. (Ariane Gold), created in March 2002, finally purchased the shares of AGF through its French Guianese subsidiary, CBJ-France SARL, and its Barbadian subsidiary, Ariane Holdings (Barbados) Inc., for a total of US $16,444,600 payable in five installments. Intense drilling (diamond and reverse circulation) resumed in September 2002, with the goal of outlining the measured and indicated resource. An initial feasibility study was done, including an environmental impact study, and an application for a 30 km2

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An initial assessment performed in June 2003 resulted in an estimate of 37.4 tonnes of gold contained. The 1999 environmental impact statement was updated, and a second application for a 30 km2 mining concession, along the same lines as the 1999 application, was filed on July 23, 2003 with the Directorate for Energy and Raw Material Resources (Direction des Ressources nergtiques et Minrales, or DIREM), an arm of the Ministry of Industrys General Directorate for Energy and Raw Materials (Direction gnrale de lnergie et des matires premires, or DGERM) in Paris. On November 29, 2003, Ariane Gold merged with the Canadian mining group of Cambior and AGF to become an indirectly-held, wholly-owned subsidiary of Cambior. From that point on, Cambior assumed the financial obligations of Ariane Gold and its subsidiaries for payment of the balance of the acquisition price to Asarco. As of August 17, 2004, two equal amounts of US $4,136,800 remain payable to Asarco, one on August 16, 2006 and the other 120 days after the commencement of commercial production from the Camp Caiman project. Diamond and reverse circulation drilling programs continued until the end of March 2004 to test the proximal extensions of the two known deposits and their satellite zones. At June 30, 2005, a total of 140 km of drilling had been done at Camp Caiman in 1,941 holes, including nearly 82 km of diamond drilling in 713 holes. Of this, nearly 80 km in 1,336 holes were drilled between September 2002 and June 2005 by Ariane Gold and then CBJ-CAIMAN.

3.4 Mining Claims and Authorizations

3.4.1.

Legal Structure of Mining Claims

The Camp Caiman project is covered by three contiguous PER covering a total area of 71 km2: Trsor to the west, Camp Caiman in the centre and Camp Caiman Patawa to the east. On July 23, 2003, AGF filed an application with the DIREM for a 50-year, 31 km2 mining concession. The concession covers almost all of the Camp Caiman PER and straddles the southeastern portion of the Trsor PER. Following a public inquiry held from November 20 to December 19, 2003 in the Roura commune, and the administrative review that took place in parallel with it, the applicant reduced the life of the concession to

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25 years.

The application cleared the Departmental Mines Commission in Cayenne on

February 26, 2004, with a favourable opinion issued for a 15-year period. The application was then sent to the General Mines Council (Conseil Gnral des Mines, or CGM) in Paris on July 12, 2004, which issued a favourable opinion for a 15-year period and smaller surface area (without specifying the extent of the reduction). DIREM sent the application to the State Council on August 17, 2004 with a favourable opinion for the application as filed by AGF (30 square kilometres for 25 years), disregarding the CGMs opinion. The State Council is the final stage of the review prior to signature of a decree by the prime minister granting the mining concession. It should be noted that opinions issued by the Departmental Mines Commission, the CGM and the State Council are consultative only. The mining concession was delivered by Prime Ministers decree to CBJCAIMAN on November 26, 2004 in accordance to the parameters suggested by the DIREM, which correspond fully to those sought by CBJ-CAIMAN. The three PER that form the Camp Caiman project expired on July 31, 2004, and applications to extend the Trsor and Camp Caiman Patawa PER for five years to July 31, 2009 were submitted to DIREM on March 29, 2004. Obtaining the mining concession is necessary but not sufficient to mine the deposits. mine operations must also be filed. Once the

concession has been granted, the Mining Code requires that an application for an authorization to initiate

3.4.2.

Authorization to Initiate Mine Operations

The conditions for granting authorization for the initiation of mine operations are outlined in decree No. 2001-205 of March 6, 2001 applying and adapting to French DOM decree No. 95-696 of May 9, 1995 on the initiation of mine operations and mining policy. The perimeter of the facilities in question includes the open pits, waste dumps, mine roads and surface facilities required for mine operation. All these facilities must be located within the perimeter of the mining concession.

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The document was filed for a first reading by the DRIRE Antilles-Guyane on April 25, 2005 and the final registration is planned for mid-September 2005. The document is processed by French authorities in French Guiana after a public inquiry, and the authorization is granted in the form of a prefectural order. The authorization is expected to be issued by the end of June 2005.

3.4.3.

Authorization to Operate (ICPE)

The processing facilities fall under the scope of law No. 76-663 of July 19, 1976 on classified installations for environmental protection (installations classes pour la protection de lenvironnement, or ICPE) and the decree implementing the law, decree No. 77-1133 of September 21, 1977, as amended. They are subject to a specific authorization procedure based on the Environmental Code. The Camp Caiman mill includes the main plant facilities such as the crusher, various grinding mills and the tailings ponds, as well as the various storage facilities for explosives and chemical products and maintenance facilities. Each facility is generally covered by a separate section in the nomenclature. There are three levels of constraint depending on the section and the quantities stored or used: declaration (D), authorization (A) and restricted authorization (autorisation avec servitudes, or AS). Certain sections call for a declaration (most chemical products used in the plant), others an authorization (most notably the tailings pond, use of explosives, and ore grinding and storage), and sodium cyanide storage requires a restricted authorization. Cyanide storage is effectively subject to the so-called Seveso system, being considered a major accident hazard involving dangerous substances. On the operational level, this means heavier constraints, both in the preparation of the authorization request and later, in the operation of the facility in question. Certain restrictions are applicable, although because Camp Caiman is in a rural area, these will be eased somewhat. A file for a first reading was filed with the DRIRE Antilles-Guyane on April 25, 2005 and the filing of the final file is planned for mid-September 2005. The file is processed by French authorities in French Guiana after a public inquiry, and the authorization is granted in the form of a prefectural order. The authorization is expected by the end of June 2005.

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3.4.4.

Property and Surface Rights

The entire Camp Caiman project area belongs to the French state and is managed by the National Bureau of Forests (Office National des Forts, or ONF). In order to establish adequate title under the Girardin Law (tax deductions) and provide good conditions for deforestation work, CBJ-CAIMAN purchased the land for the processing plant and related facilities (39 hectares) and south access road (96 hectares) from the Tax Department (services fiscaux). A tripartite letter of intent (ONF, taxation authorities and applicant) was signed at the end of June 2005 to confirm the purchase of the other lands (agreement of precarious occupation) necessary for the establishment of the waste dumps, tailings ponds and mine roads. The final transaction will come into effect when the operating licenses are delivered by the prefecture. The mining infrastructure, and the mill in particular, cannot be built until a construction authorization is obtained from the Departmental Procurement Bureau (Direction Dpartementale de lquipement, or DDE), in addition to the ICPE authorization. The access from the RN-2 (Piste Sud) will be opened (as a track) in the fall of 2005, once an

authorization for work in a water course has been obtained from the prefecture, and work will continue in 2006 once an authorization has been obtained under the Water Act. A housing development consisting of nine residences will be built in the municipality of Rmire-Montjoly for the staff expatriates, and an administrative office will be rented in the same town.

3.4.5.

Additional Exploration Rights

CBJ-FRANCE participates in eight gold exploration projects, either directly or through a six-year option agreement (75%) signed with Socit des Mines du Bourneix-Guyane (SMBG), a subsidiary of Cogema, on April 14, 2000. These contiguous projects (Tortue, Maripa Sud-Est, Crique Voux, Maripa, Changement, Sainte Marie, Montagne Guadeloupe Sud and Orapu), all near Camp Caiman, cover a total area of 234 km2 along the RN-2 (see Figure 3.3).

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Cayenne
Montsinry

ORAPU
-2 RN
Roura

Oc

10 kilomtres

nA

tl a

n ti

qu

PARAMACA
52 Camp Caman
B A D H G E I C

CD -6

Future route daccs

430
Kaw

ARMINA
F

Synf
J K
Rgina

orm e

GRANITE

de R gin a

OR AP

PARAMACA

CBJ-Caman

SMBG/CBJ-France
D) Sainte Marie E) Changement F) Voux

CBJ-France
G) H) I) J) K)

Projet Camp Caman Plan de situation

A) Concession Camp Caman B) Trsor C) Patawa

Mt. Guadeloupe Orapu Maripa Maripa Sud-Est Tortue

Permit Location and Geological Context Figure 3.3

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There are placer gold operations all along the projects. The northwest part of the permits, in the crossing and Sainte-Marie area, was the site of a significant gold operation, both placer and primary, with a total declared production of about 3.3 tonnes (106,000 ounces) of gold: 2 tonnes (65,000) ounces of placer gold along the crossing, Anthony and Willy creeks in the second half of the 19th century and early 20th century, and about 1.3 tonnes (41,000 ounces) of primary gold at the crossing and Sainte-Marie sites between 1985 and 1996. Exploration work (soil geochemistry, deep manual and mechanized auguring, trenching and diamond drilling) by BRGM, SMBG and CBJ-FRANCE generated results that warranted continued work. The existence of the south access road offers very good synergy with Camp Caiman, as future gold mining would be facilitated by the presence of the Camp Caiman infrastructure.

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4.0 GEOLOGY

The volcanic-sedimentary geology of the Camp Caiman area consists of three main stratigraphic entities (Figure 4.2). Mafic volcanic rocks of the Paramaca Formation at the base are covered by a normally graded bedding of stratified grey pelites, greywackes and siltites of the Armina Formation. Small porphyry and intermediate sills are also present in the Armina Formation, cutting obliquely across the sedimentary beds. The top of the Armina Formation shows inverse grading, changing gradually from clayey facies to the locally kaolinitic terrigene sandstone facies and quartz-pebble conglomerates associated with the Orapu Formation. Two phases of folding produced the map pattern shown in Figure 4.1, Figure 4.2 and Figure 4.3. The first phase produced tight folds as well as deeply penetrating regional schistosity (S1) accompanied by metamorphism to lower green schist facies. northwest southeast crenulations (S2). These two deformation phases have affected the gold mineralization, giving it a generally sinuous trace in three dimensions. Numerous east-west, near-orthogonal, post-mineralization dolerite veins cut the mineralized body. These vertical veins are several kilometres long and can have a true width of over 40 metres (m). The second phase produced open folds and regional

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The geology is masked by the equatorial forest cover. On hill tops and flanks, it is also hidden by three levels of very hard laterite pan, each ranging in thickness from 0 to 5 m. In low lying areas, alluvial deposits 0 to 5 m thick also play a role. It should be noted that the gold anomaly lies at a break in the topographic slope. This anomaly is potentially larger that the BRGM work indicates, as it is probably masked by the laterite pan to the north and alluvials to the south. During a period of over 100 million years, intense tropical weathering altered all the rocks to laterites and saprolites to a depth of more than 120 m below surface (Figure 4.4). A few resistant outcrops of Orapu quartz-pebble conglomerates can be seen locally within the property boundaries. Tropical alteration of the Guiana Shield considerably transformed and dismantled the paleo-relief, forming strong saprolitic horizons often covered by discontinuous laterite layers and more erosion-resistant duricrust. The vegetation cover has protected the soil from erosion. The chemical effects of tropical weathering include the destruction of the crystal structure of the fresh rock primary minerals by intense leaching of the silicates (SiO2) and alumina (Al2O3). This results in the formation of secondary minerals (Ti and Al clays and oxides), mobilization and partial precipitation of Fe and Mn, and concentration of the more resistant minerals such as zircon, magnetite and quartz. This chemical phenomenon also tends to concentrate the gold near its source (supergene gold).

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Ro u

ra -

Ca ye n

ne
1000 0 metres 1000

Scout Zone

CC-88 Zone

Ka w

CC-08 Zone

Camp Caiman Project Plan View and Geology

Dolerite Conglomerate Porphyry Flysch Graphitic Flysch

Coarse-grain Flysch Greywacke Volcanics Pits Anomalies

Figure 4.1

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Camp Caiman Project 3D Geology

Dolerite Dyke Orapu Armina Paramaca Mineralization

Figure 4.2

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CC-08 Zone Scout Zone

Camp Caiman Project 3D Mineralized Zones

Figure 4.3

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Laterite

25-125 m

Saprolite

5-30 m

Transition

Rock

Landslide and residues

Camp Caiman Project Mineralized Zone

Mineralized Zone Alluvials

Figure 4.4

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Table 4.1 shows the typical weathering profile for a tropical environment. Table 4.1 Camp Caiman Project Weathering Profile Horizon Pisolithic laterite Thickness (m) 0-5 Chemistry Fe2O3 enriched, SiO2 depleted Massive clay zone 0-1 Rare Comments Virtually nonexistent over the deposit

Mottled zone

2-10

Fe2O3 enriched, SiO2 depleted

Thicker in landslide masses (loupes de glissement de terrain) Thin over dolerite, thick on the Scout zone. Contains massive quartz. Generally thin except in the Orapu

Saprolite

10-125

Al2O3 enriched SiO2 depleted

Transition zone Fresh rock

0-50 Variable

Pisolithic Laterite: Burgundy maroon red in colour, this horizon contains 10 to 95% iron oxide concretions and pisoliths. Cementation of the pisoliths eventually produces the duricrust. None of the original rock textures are preserved, except for fragments of quartz veins that sometimes occur as brecciated fragments cemented by supergene iron oxides. This type of material only appears very locally over the deposit, the two main occurrences in the pit area being at the east and west ends of the Scout zone. Dismantled laterite duricrust also occurs locally. Massive Clay Zone: This very sporadic, featureless burgundy red horizon contains less than 10% iron oxide concretions and pisoliths. Mottled Zone: A hydrated, orange-mottled, beige, clayey horizon with colourless vertical stripes and mottles of hydrated iron oxides representing incipient pisolith development.

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Water percolation creates a series of voids and channels that often become filled with kaolinite. The top of the horizon has ferruginous nodules that eventually coalesce with the overlying pisolithic level. Saprolite: A hydrated horizon in which most weatherable primary minerals have been altered to clays (kaolinite), geothite and amorphous iron oxyhydroxides. remain intact. Only resistant minerals such as quartz and magnetite Stratigraphic Weathering is isovolumetric, and the original rock fabric is preserved.

interpretation is highly relative and must be supported by fresh rock information. The material is easily cut with a knife for sampling. This weathered horizon is thinner in the area of the dolerite veins and in the Orapu conglomerates and sandstones. Transition Zone (saprock): A transition material between the saprolite and the fresh rock. Primary pseudomorphic minerals show signs of replacement by secondary minerals (oxides). The sulfides are partially oxidized and colour the rock shades of yellow, orange and white. The material must be cut using a diamond saw for sampling. Fresh Rock: All of the rocks original petrographic characteristics are present. The sulfides are clearly identifiable. Because of the fine granulometry of the Camp Caiman gold, there has been almost no recent artisanal gold mining. However, many artefacts and old local mining sites attest to some level of former artisanal mining activity.

4.1.1

Mineralization

The Camp Caiman mineralization predates the two regional deformation periods. Evidence for this lies in the fact that throughout the ore body, on all scales, there are clear signs of conditioning by the structural effects. On the scale of the drill core, the sulfides are mainly aligned parallel to the S1 regional schistosity. On the scale of the deposit, these structural effects are seen in the sometimes complex geometric anticlinal and synclinal forms that affect all of the mineralized horizons (See Section 3.6.1, Figure 4.2). The Camp Caiman deposit therefore consists of a mineralized body, originally relatively tabular then contorted by two phases of regional deformation.

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This mineralization is systematically deposited in a hydrothermal alteration halo, characterized by potassium, carbonate and sulfate alteration, which crosses the stratigraphy at a very gentle angle over its entire length. The width of the alteration halo is highly variable, exceeding 100 m locally in the CC-88 zone. Most of the hydrothermal halo is accompanied by siliceous bundles occurring as quartzy bodies, blue grey in colour due to the presence of sulfide inclusions. The largest siliceous bundles occur in the CC-88 zone. All the quartz bundles are strongly boudinaged or folded. The primary sulfides associated with the alteration and gold mineralization are pyrite, arsenopyrite and pyrrhotite. The pyrrhotite is more sporadic but locally as abundant as the pyrite. The gold generally occurs as inclusions within the arsenopyrites and pyrites, but also frequently as microscopic free gold within the fractures affecting the arsenopyrites and pyrites in pull-apart state. Visible gold is encountered very rarely in quartz veins or microscopic flakes near the sulfides. Supergene enrichment may occur at the subsurface of the CC-88 and Scout zones, where particularly high grades were intersected near surface.

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5.0 DEPOSIT GEOLOGY

5.1

Unified Model

The deposit was originally divided into three mineralized zones called, from west to east, the Scout, CC-08 and CC-88 (Figure 4.1) zones. Recent geological interpretations indicate that these three zones are three subdomains of a single metallotect, with many geological characteristics common to the overall deposit. For the purposes of regional modeling and resource estimation, it is more practical to describe each of these zones individually.

5.2

Scout Zone

Occupying the west half of the deposit, the Scout zone consists of a main lens pinching in the northern and southern extension. The lens is the continuity of the mineralization of the CC-08 and CC-88 zones. This lens is essentially shaped like a flat-lying Z, encased exclusively in graphitic flyschs of the Armina Formation, near felsic and intermediate porphyry veins (Figure 5.1). The anticlinal part of the Z represents the largest volume of the mineralized lens, which has a maximum width of about 50 m. The primary sulfides present are arsenopyrite and pyrite, forming most 5% of the whole. The mineralized zone was tested almost exclusively in saprolite on a 25 m x 25 m grid, over a distance of 1,100 m and to a maximum depth of 140 m below surface. Very locally, a 12.5 m x 25 m grid was drilled to test the continuity of the mineralization. The zone extends down into the hard rock, with this potential yet to be assessed.

5.3

CC-08 Zone

Lying in the eastern extension of the Scout zone, the CC-08 zone consists of a single main lens in the shape of a south-westerly overturned anticline (Figure 5.2) and a very narrow parallel subsidiary lens. This mineralization is encased exclusively in graphitic flyschs of the Armina Formation near felsic and intermediate porphyry dykes. The rock has not been extensively drilled, and consequently the abundance and composition of the sulfides containing the gold mineralization are difficult to define. The mineralized zone was drilled on a 35 m x 35 m grid, and is the least well documented zone of the deposit. New mineralized extensions to the zone were identified in the southwest direction. The zone is 350 m

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long, and has been drilled to a maximum depth of 90 m below surface. It extends down into the rock, which remains a target for later exploration.

5.4

CC-88 Zone

Lying in the east extension of the Scout and CC-08 zones, the CC-88 zone consists of a main lens in the shape of a large, south-westerly overturned anticline plunging approximately 35 south-southeast (Figure 5.3). This lens is accompanied by a parallel subsidiary lens. It is encased exclusively in a finelybedded greywacke unit that represents the basal facies of the Armina Formation. Felsic and intermediate porphyry bodies occur near the mineralization. The main mineralized lens is up to 90 m wide in places. The sulfides associated with the gold mineralization in fresh rock are arsenopyrite, pyrite and, locally, pyrrhotite. These sulfides form a maximum of 10% of the whole. Strongly deformed, generally narrow (one to several centimetres), discontinuous veins of blue-grey quartz are common in the main lens. The main lens has been delineated over a total length of 600 m and was intersected by one hole at 250 m below surface. Northern and western extensions in the Ara Zone and in the Orapu formation have been identified.

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400

500

600

700

SW
Camp Caiman Project Section 300NW, SCOUT Zone
100

800

NE

100

Saprolite Transition Fresh Rock

-100

-100

Dolerite

0 metres
400 500

100

Mineralisation 0.5 g Au/t Conglomerate Flysch 600 700 800

Figure 5.1

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800

900

1000

SW
Camp Caiman Project Section 450SE, CC-08 Zone
100

1200

1100

NE

100

Fosse Saprolite n sitio Tran Fresh Rock

-100

Dolerite Mineralization 0.5 g Au/t Conglomerate Flysch Basal Wacke Volcanics 1000 1200 1100 800 900

-100

Figure 5.2

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1300

1400

1500

1600

1700

SW
Camp Caiman Project Section 925SE, CC-88 Zone
100

1800

NE

100

Saprolite ion nsit Tra Fresh Rock


Dolerite Mineralization 0.5 g Au/t

-100

-100

Fosse
0 metres
1300 1400 1500 1600 1700

Conglomerate Flysch

100

Basal Wacke Volcanics 1800

Figure 5.3

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6.0 EXPLORATION PROGRAM AND DATA COLLECTION

6.1 Exploration Strategy The Camp Caiman exploration program advanced systematically from grassroots exploration to reserve estimation based on data from over 111,403 m of drilling. The six main stages of exploration were:

6.1.1

Mapping

Three months of mapping work was done at the outset of the exploration program. The few outcrops identified allowed the definition of a general stratigraphic ensemble and some basic structural data. The best outcrops were those of the Orapu sandstone and conglomerate. These were the primary exploration target at the beginning of the Asarco project, as they lie more or less at the centre of the BRGM geochemical anomaly.

6.1.2

Trenching

A total of 2,998 m of trenching were excavated between September 1995 and January 1996, mainly across the central axis of the BRGM anomaly. The mitigated results obtained in the trenches indicated that the geochemical anomaly was in part colluvial and therefore locally displaced downward from its source toward the base of Kaw Mountain.

6.1.3

Ground Geophysics

Ground magnetometry and radiometric surveys were performed over more than 50 line-km, on lines spaced at 200 m. The lines were oriented N370, perpendicular to the Scout and CC-08 zones, parallel to the CC-88 zone and almost parallel to the dolerite dyke swarms, which had not yet been identified. The results of this program essentially provided an understanding of the position of the dolerite dykes and delineation of the Paramaca contacts.

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6.1.4

BRGM Soil Geochemistry Programs

The various chemical analyses done on the 2,039 geochemical samples collected by BRGM between 1991 and 1993 were used to develop isograde line maps. Among other things, this resulted in the delineation of the gold anomaly that led to the discovery of the Scout zone.

6.1.5

Drilling Programs

A total of 128,995 m of core and percussion drilling was done in several stages on the project. Table 6.1 shows the drilling programs by year since 1996. Additional drilling was done in the second quarter of 2005, but data are not including in the present study as the results were not available at the time of the study.

Table 6.1 Summary of Camp Caiman Drilling Programs Diamond Drilling (61%) Company Asarco Asarco Asarco Asarco Asarco Ariane Gold Ariane Gold Cambior Cambior Year 1996 1997 1998 1999 2000 2002 2003 2004 2005 Total Number 39 104 71 --16 80 169 101 89 669 Length (m) 6,851 18,944 11,206 -----2,178 8,543 15,670 9,065 6,728 79,185 Samples 4,939 13,974 9,536 -----2,026 8,165 12,898 7,398 6,017 64,952 Percussion Drilling (39%) Number 28 76 156 83 32 89 206 243 89 1,002 Length (m) 1,242 4,122 8,570 4,671 2,002 4,939 10,484 9,627 4,152 49,810 Samples 753 2,672 5,490 2,935 1,250 3,107 6,563 5,910 2,650 31,331

Under the supervision of Asarco, the 1997 drilling program clearly outlined the Scout and CC-88 zones, which were tested again in 1998 (Table 6.1). Work slowed from 1999 to 2002 due to lower gold prices.

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No drilling was done in 2001. Drilling resumed under the new supervision of Ariane Gold and then Cambior, beginning in the fourth quarter of 2002 until the first quarter of 2005, to tighten the grid to the geostatistical standard required for the reserve and resource estimation presented in this study. In all, over 96,283 samples were collected during these drilling programs. Most of the holes (Table 6.2) were drilled to delineate the geometry and resources of the deposit discussed in this study.

6.1.6

Targeted Soil Geochemistry

An MMI-type (Mobile Metallic Ion) survey on two lines above the deposit in 1998 confirmed the presence of gold in the soil, but did not pinpoint the precise size or position of the deposit. The method indicated a relationship between pH and the deposit, but this observation was not pursued. However, a total of 1,963 soil samples were collected in 1998 and 1999, primarily to delineate an extension of the mineralization onto the neighbouring Trsor and Parawa permits.

6.2 Data Collection Of all the activities through the various stages of exploration, lithological definition and sample preparation are the most important and critical of all the exploration activities, and require irreproachable quality control. The very strict sampling procedures used throughout the various phases of exploration are summarized below.

6.2.1.

Soil Sampling

Using a sampling grid of previously-cut lines spaced at 100 to 200 m, hand auger samples were collected at 50 m intervals along each line using 5 centimetre spoons. Holes were drilled from 0 to 30 centimetres (cm), and all the material collected was sent for assay. Infill sampling over resulting soil anomalies reduced the grid spacing to 25 m by 50 m. Isograde line maps of these results were drafted and used to plan later exploration work. The results of this exploration method were not used for resource estimation.

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6.2.2.

BRGM Deep Augering

In 1993, BRGM drilled 17, 10-m deep auger holes for a total of 4,210 m of drilling. These holes were drilled on intermediate lines on previously-identified soil anomalies. Often yielding lithological data on the saprolite, the depth of the holes was nonetheless highly sensitive to the presence of hard material (quartz, laterite) that blocked their progress. Samples were collected at one metre intervals. Deep augering results were not used for resource estimation.

6.2.3.

Trenching

Sixteen trenches totalling 2,998 m were excavated, mainly on the Orapu Formation conglomerates and sandstones in the central axis of the BRGM geochemical anomaly. Two of the trenches had previously been dug by BRGM (450 m), and one of these had been re-examined by Asarco. With a maximum depth of 5.3 m, these trenches provide an initial 3-D reconnaissance when they reach saprolite, where the geological textures and certain factors controlling mineralization are generally well-preserved. Channel samples of 1 to 3 m in length were collected in these trenches. These systematic channels are generally horizontal, at the base of one of the two vertical walls in the least-disturbed saprolite, and in some cases more vertical to cut quartz veins at a right angle. All the trenches were surveyed after being filled in. These trenches revealed that the BRGM anomaly was in large part colluvial. Assay results from these trenches were not used for resource estimation.

6.2.4.

Percussion Drilling

A small Scout-type reverse-circulation (RC) drill manufactured by Sphere Drilling and Supplies of Calgary, mounted on tracks and equipped with an air compressor, executed most of this type of drilling using a tricone bit and occasionally a downhole hammer. Following the artisanal recovery prototypes of 1996 and 1997, percussion drilling became a reliable, economical drilling technique that helped define the mineralized zones of the Camp Caiman deposit. Briefly, the technique can be described as follows. Compressed air and a small quantity of water are sent into the outer part of a dual wall drill pipe and the broken sample is evacuated up through the centre. On surface, a cyclone slows the velocity of the sample, which falls into a receptacle. In the cyclone, an adjustable angled tab removes the sample into a pre-numbered bag attached to its end. The 1,524 m

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passes total 15 g, of which 2 to 3 g are bagged and immediately hung to drain in the forest for 96 hours. Since February 2005, passes are at 1,500 m. Once at camp, the samples are further dried for 24 to 48 hours and then sent to the laboratory. In terms of assay results, with each pass, percussion drilling produces a mix of rock cuttings. This mixing effect is equivalent to the mixing of half-cores produced during preparation of drill core for assaying. The only variable is that percussion drilling produces a certain smoothing at the beginning and end of a pass. This smoothing can cause assay results to be slightly displaced from their original position. The geological information deduced from observation of the cuttings discharged by the cyclone is limited and can only partially serve to build a geological model of the deposit. However, chemical assay results are reliable (see Section 3.5.1.3). This drilling method represented 39% of the total metres drilled and 60% of the total number of holes drilled. It therefore contributed significantly to the resource estimate (Table 6.1 and Table 6.2). The coarse rejects from all the holes drilled before 2002 and during 2005 were stored at the camp site, while a large proportion of rejects from 2002 to 2004 were discarded after being tested in accordance with Cambior policy.

6.2.5.

Diamond Drilling

Diamond drilling using two Longyear 38 type drills was used for exploration at Camp Caiman from 1996 on. Holes were cored using HQ size equipment in saprolite, generally reducing to NQ size in the hard rock. Polymers and bentonite were used to facilitate drilling and improve core recovery. The saprolite, saprock and hard rock cores were packed in 1-metre sections in plastic core boxes stored in the camp core shacks. Over 1,400 structural measurements taken in holes drilled across the deposit, as well as essential stratigraphic observations, were used to build the geological model. Systematic sampling was done on 1-metre long half-cores, and exceptionally at shorter or longer intervals for holes drilled in 1996, 1997 and 1998. The saprolite saprock were never cleaned by their film of muds before 1998. The remaining half-core was kept for reference. This drilling method represents 61 % of the total m drilled and 39% of all the holes drilled, and therefore contributed significantly to the resource estimate (Table 6.2). Average overall drill core recovery was 90%. All holes were surveyed. The coarse rejects for all holes drilled before 2002 and during 2005 were stored at the camp site, while a large proportion of the rejects from 2002 to 2004 were discarded after being tested in accordance with Cambior policy. Table 6.2 shows the holes drilled in the Mineralized Zone.

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Table 6.2 Holes Drilled in the Mineralized Zone Zones Scout CC-08 CC-88 Total Diamond Drilling Number 220 31 226 477 Metres 7,608 874 10,139 18,621 Sample # 7,608 874 10,139 18,621 Percussion Drilling Number 249 89 195 533 Metres 4,945 1,143 3,822 9,910 Sample # 3,296 764 2,548 6,606 Total samples 10,904 1,636 12,687 25,227

Overall, 60% of the drill holes intersected the deposit mineralization, and 22% of the samples collected during all of the exploration programs contributed to orebody delineation.

6.3 Data Storage and Manipulation All exploration data is initially entered into a database and merged with survey, geology and assay results. This allows rapid data manipulation and retrieval, and facilitates transfer to Gemcom exploration database. The Gemcom data is stored in a structured series of related tables, and is used to produce crosssections and plans of drill holes, geological data and assay results. This data is used for interpretation and exploration planning, as well as for 3D modeling of the geology and associated mineralization. Gocad is used for better model smoothing. The 3D model is then used to produce a block model in Gemcom for resource estimation.

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7.0 ASSAY RECONCILIATION

7.1 Assaying Procedures As shown in the flowsheet in Table 7.1, the half-core and rock fines samples (Table 6.1) were prepared and assayed in the same way at all the laboratories used (see laboratory descriptions in Section 3.5.1.1). The samples received at the laboratories were unwrapped and their sample numbers were recorded and checked against the shipping lists prepared by the exploration team. The samples were placed in individual aluminum pans and dried in electric ovens at 150C, for at least 24 hours in the case of the very wet percussion drilling and saprolite samples, or for only a few hours in the case of the hard rock samples. At Triad, in 1997, drying took place in a charcoal oven. Most of the samples were crushed at SGS Cayenne by jaw crushers to better than 90% passing 10 mesh (1.7 mm). The crushing equipment is cleaned with compressed air and brushed between each sample. The crushed samples are then split into four by passing the entire sample through a standard Jones or Humbolt-type riffle splitter. For the split samples at the Cayenne laboratories, a 400 gram portion of the sample is placed in a tagged plastic bag labeled with the original sample number. The remainders of the coarsely crushed samples are returned to their original bags, and some of the samples are removed for use as duplicates while the rest are sent to the Camp Caiman to be inventoried and stored. The duplicate samples are renumbered before being resubmitted to SGS or to one of the external check laboratories, Cone Geochemical Laboratory (CGL) in Colorado and ALS-Chemex in Val dOr, Qubec, for pulverization and assaying under another number. A 300 gram portion of the coarse sample received and/or produced in the various laboratories is pulverized using ring and puck mills to a pulp at 90% passing 200 mesh (75 microns). A 29.2 gram pulp sample (1 assay-tonne) is subject to fire-assaying. At Filab, flame atomic absorption (AA) is used to finish the cupellation process. The sample to be assayed is placed in a porcelain crucible and mixed with the flux ingredients. One tray of 24 crucibles is then fused at 1,950C in an electric furnace. Each tray includes 21 samples, 2 random standard samples and one QA/QC sample (either a blank or control standard). At CGL and ALS-Chemex, the sample is prepared by adding fluxes. The gold and silver are then

separated by cupellation. An experienced laboratory technician evaluates whether the gold and silver

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button produced represents a gold grade of higher or lower than 5 g Au/t. Buttons grading less than 5 g Au/t are dissolved and analyzed using AA spectrometry. In the database, priority is given to this type of assaying as the final result for a given sample. A total of 193 Fasmet (microwave) assays were performed as a final check of high grade results. The Fasmet results take precedence over the standard assays in the database. This type of assay confirmed that the gold in the deposit is extremely fine.

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Sample sent to laboratory

Crushed to 90% passing 10 mesh (1.7 mm)

Homogenized and split (riffle)

Coarse reject

400 g sample

2% reanalysed by check laboratory

Pulverized to 90% passing 200 mesh (75 m)

Quartering

Fine reject

1 assay-ton (29.2 g) sample

Fire assay >5 g/t, gravimetric finishing

Assay Procedure Flowsheet Figure 7.1

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7.1.1.

Assay Laboratories

In 1996, CanTech, the only laboratory in Cayenne that assayed the trenching samples, was overloaded by the flow of samples and producing unsatisfactory test results. The preparation and assaying of samples from diamond drill holes CC-01-96 to CC-12-96 and percussion drill holes SS-01-96 to SS-28-96 was assigned to the SGS laboratory in Carcassonne, France (SGSF). For quality control purposes, core sample pulps containing a significant quantity of gold were then sent from SGSF to Cone Geochemical Laboratories (CGL) in Denver, Colorado, for check assaying. A comparison of test results for internal checks, inter-laboratory checks and standard samples regularly introduced into the series revealed assay reliability problems at the SGSF laboratory. This systematic verification led Asarco to assign subsequent preparation and assaying to CGL instead of SGSF. At the end of 1996, SGS set up a preparation laboratory in Cayenne. For the purposes of the 1996 drilling program, samples from diamond drill holes CC-13-96 to CC-39-96 were delivered to SGS in Cayenne (SGSC) for duplicate preparation. One pulp was assayed by CGL while the second was assayed by SGSF. For the first part of the 1997 drilling program, half the samples from holes CC-40-97 to CC-98-97 were prepared at the SGSC laboratory. The pulps from these samples were assayed by CGL. In May 1997, CGL had assayed the initial pulp while SGSC assayed the duplicate pulp for quality control. However, Asarco was obliged to terminate the SGSC services due to new difficulties with the Asarco standard samples when the new SGSC laboratory began operation. For the second part of the 1997 drilling program, about half the samples from diamond drill holes CC-99-97 to CC-138-97 and percussion holes SS-29-97 to SS-104-97 were prepared at the newly set up Triad laboratory in Cayenne. Coarse preparations of the Triad samples were assayed by CGL. At the start of the 1998 drilling program, sample preparation was given to the SGSC laboratory as they had solved their problems, while the pulps for all the samples used for the first resource estimation were assayed by CGL. SGSC assayed certain duplicate samples and duplicate coarse rejects, as well as reconnaissance percussion drilling samples. During an air transport strike at Cayenne, SGSC prepared and assayed all the samples. The duplicate coarse rejects for all these samples were subsequently reassayed by CGL. At the end of 1998, CGL complained that the SGS pulps were lumpy, likely due to the clay content and Guyana humidity, and therefore had to be repulverized. From then on, SGSC did only the primary crushing of 500 gram samples, and CGL did the pulverization and assaying.

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For the 1999 program of exclusively percussion drilling (Table 7.1), samples were sent to Filab (at the time a subsidiary of SGS) in Cayenne, while control samples were processed by CGL. Independent by 2002, Filab in Cayenne assayed all samples from September 2002 to date, while certain coarse reject duplicates were sent to the ALS/Chemex laboratory in Val dOr, Canada. For administrative purposes, samples produced from November 2003 on were prepared by Filab in Cayenne, and 400 gram coarse reject samples were assayed at the SGS Chenve subsidiary in France, with checks done by ALS/Chemex.

7.1.2.

Duplicates and Standards

Throughout the exploration program, the mining companies in charge of the project made an effort to introduce regular (every 20 to 25 samples) blank and control standards in the field. From 1996 to 2000, Asarco made its own blanks and standards. The first standards were made from material collected in Chili. Once those were finished, other standards were made using Caiman project material (Table 7.1). In 1996 and 1997, controls led to the dropping of certain standards, as well as to some reassaying and changing of laboratories. The situation subsequently improved, with satisfactory correlations from 1998 to 2000. During the 2002 to 2005 explorations programs, samples were processed at Filab with the same protocol used since 1998 by Asarco, using the available blanks and standards. In 2003, five new industrial standards produced by GANNET (Australia) (ST04, ST06, ST10, ST16 and ST18) and a blank (BLK) prepared from sandstone were used to replace the depleted Asarco standards (B1, B2, B5, B7, H1, H2, H4, H6, C and D). Table 7.1 shows the list and description of the 3,910 standards used (4.0% of all samples assayed) during these programs, with their respective grades. The controls performed using these standards were considered satisfactory.

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Table 7.1
Control Standard Statistics (g/t) Label A (Asarco, Chili) B (Asarco, Chili) B1/Blank (Asarco, Caiman) B2/Blank (Asarco, Caiman) B3/Blank (Asarco, Caiman) B4/Blank (Asarco, Caiman) B5/Blank (Asarco, Caiman) B7/Blank (Asarco, Caiman) H6 (Asarco, Caiman) H4 (Asarco, Caiman) H2 (Asarco, Caiman) H1 (Asarco, Caiman) H5 (Asarco, Caiman) C (Asarco, Chili) D (Asarco, Chili) ST04 (GANNET) ST06 (GANNET) ST10 (GANNET) ST16 (GANNET) ST18 (GANNET) Blank (Ariane Gold) BLK ( Cambior) 0.015 0.052 2.06 4.83 5.60 11.10 15.97 2.10 0.31 5.80 1.19 3.70 0.56 10.74 0.03 0.03 +2 Std Dev. 0.91 0.37 0.019 0.065 Average 0.76 0.22 0.011 0.021 Invalidated Invalidated 0.009 0.03 1.78 4.27 5.14 10.12 13.69 1.95 0.29 5.16 1.05 3.40 0.50 9.70 0.01 0.01 0.003 0.008 1.50 3.71 4.68 9.14 11.41 1.80 0.27 4.52 0.91 3.10 0.44 8.66 0.00 0.00 -2 Std Dev. 0.60 0.065 0.003 0.000 Frequency 108 129 117 84 120 27 458 230 159 55 220 182 110 405 349 162 237 183 180 113 127 155

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7.1.3.

Check Assay Program (QA/QC)

From 1996 to 2000, the assay precision control procedures included the regular introduction of Asarcomade blanks and standards, as well as assay control checks for the pulps, coarse rejects and percussion drilling samples. From 2002 to 2004, only the pulp checks were dropped, with each laboratory following its own pulp check policy (Table 7.2). This program was reactivated in March 2005. These checks were done on a monthly basis. For the laboratories as a group (Table 7.2), as of

March 31, 2005, a total of 14,257 check samples had been produced (14.8% of all samples submitted for initial assaying), including 6,109 pulp duplicates (PD), 7,112 coarse reject duplicates (CD) and 1,036 ground duplicates (percussion drilling, GD). In addition, 16 holes had been twinned, three of which were tripled during the program.

Table 7.2 Check Assay Results Sample Type PD from 1996 to 2000 PD 2005 CD from 1997 to 2000 CD from 2002 to 2005 GD from 1998 to 2000 GD from 2002 to 2005 SGS plus Filab 4 256 641 1,122 3,359 13 583 1,343 440 305 1,288 ALS-Chemex CGL 907 Total 5,163 946 2,410 4,702 453 583 14,257

From 1996 to 2000, the check samples were quartered, renumbered and bagged by Asarco employees in Cayenne for redistribution to various laboratories. From 2002 to 2005, the check samples were sorted at the laboratory by exploration personnel. Although certified in France, the Filab laboratory subsidiary in Cayenne occasionally produced internal standard assays that indicated a certain level of instrument drift (weekly fluctuations). In 2002 and 2003, results for certain standards exceeded the two standard deviation limit by a considerable margin.

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This temporary drift effect was judged to be minor and was not taken into account in the assay results for the period. The drift subsequently stabilized. From 1996 to 2000, 8,026 samples (38%) of a total of 21,237 samples submitted during this program (Table 7.1) were reassayed, primarily by CGL (Table 7.2). The choice of sample was not totally random, as many of the selected samples had significant grades..

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CGL vs CGL 1997 to 1998


100.0

SGS vs SGS 1998 to 2000


100.0

Duplicate Values CGL Coarse Rejects

Duplicate Values SGS Coarse Rejects

Correl Coeff 0.991 860 Samples


10.0

Correl Coeff 0.989 417 Samples


10.0

1.0

1.0

0.1

0.1

Initial Average = 1.97 Re-analysis Average = 1.89


0.0

Initial Average = 0.26 Re-analysis Average = 0.28


0.0 0.0 0.1 1.0 10.0 100.0

0.0

0.1

1.0

10.0

100.0

CGL Initial Values

SGS Initial Values

SGS vs CGL 1998 to 2000


100.0

Filab vs Chemex 2002 to 2005


100.0

Duplicate Values SGS Coarse Rejects

Duplicate Values Filab Coarse Rejects

Correl Coeff 0.990 1122 Samples


10.0

Correl Coeff 0.862 1343 Samples


10.0

1.0

1.0

0.1

0.1

CGL Average = 0.70 SGS Average = 0.76


0.0
0.0 0.1 1.0 10.0 100.0

Filab Average = 2.88 Chemex Average = 2.78


0.0 0.0 0.1 1.0 10.0 100.0

Duplicate Values CGL Coarse Rejects

Duplicate Values Chemex Coarse Rejects

Filab vs Filab 2002 to 2005


100.0 100.0

Filab vs Filab 2002 to 2005


Duplicate Values Filab Coarse Rejects Correl Coeff 0.905 3359 Samples
10.0

Correl Coeff 0.937 641 Samples Duplicate Values Filab Pulp Rejects
10.0

1.0

1.0

0.1

0.1

Initial Average = 0.46 Re-analysis Average = 0.48


0.0 0.0 0.1 1.0 10.0 100.0

Initial Average = 2.29 Re-analysis Average = 2.19


0.0 0.0 0.1 1.0 10.0 100.0

Filab Initial Values

Filab Initial Values

Camp Caiman Project QA/QC Program

Figure 7.2

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From September 2002 to March 2005, Filab reassayed 4,583 samples (8.5%) of a total of 52,708 samples submitted during this program. Although generally randomly selected, some samples were specifically selected in the following situations: To check the grades of the samples immediately before or after high grade standards; To check grades below the expectations of the geologists logging the drill core; To check grades slightly below the composite sample cut-off grade; To check the grades of end-of-composite samples. 7.1.4. Pulp Duplicates

A total of 6,109 pulp duplicates were submitted for reassaying from 1996 to 2000 (Table 7.2). The pulp reassays were done systematically every 20 samples, and did not demonstrate any abnormal assay behaviour. March 2005. This practice was dropped for the 2002 to 2004 programs and put back in place in

7.1.5.

Coarse Reject Duplicates

A total of 7,112 duplicated coarse reject samples were submitted for reassaying from 1996 to 2005 (Table 6.1, Table 7.2). Of this total, 860 coarse reject samples were duplicated at CGL for comparison with results initially obtained by CGL in 1998. The average grade of the CGL reassaying was 1.89 g Au/t, compared to an original value of 1.97 g Au/t (Table 7.3). Two samples showed poor correlation, although insufficient to influence the comparison assay results. The overall correlation coefficient for this check assaying was 0.99, which is considered very satisfactory (Figure 7.2).

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Table 7.3 Summary of Reassays Performed by CGL in 1997-1998 Parameters Number of assays Average grade (g Au/t) Median grade (g Au/t) Minimum grade (g Au/t) Maximum grade (g Au/t) Standard deviation Coefficient of variation Initial assay 860 1.97 0.15 0.00 79.60 5.12 2.60 Second assay 860 1.89 0.15 0.00 42.20 4.39 2.33 Initial assay, adjusted 858 1.84 0.16 0.00 43.20 4.23 2.30 Second assay, adjusted 858 1.84 0.16 0.00 42.20 4.25 2.31

A total of 417 coarse reject samples were reassayed by SGS for comparison with values initially produced by SGS in 1998 and 2000. The average grade of the second assays was 0.28 g Au/t, which compares to an original result of 0.26 g Au/t (Table 7.4). The correlation coefficient for this check assaying was 0.99, which is considered satisfactory (Figure 7.2).

Table 7.4 Summary of Reassays Performed by SGS in 1998-2000 Parameter Number of assays Average grade (g Au/t) Median grade (g Au/t) Minimum grade (g Au/t) Maximum grade (g Au/t) Standard deviation Coefficient of variation Initial Assay 417 0.26 0.04 0.01 19.71 1.13 4.35 Second Assay 417 0.28 0.04 0.01 25.60 1.38 4.93

A total of 3,359 coarse reject samples were reassayed by Filab for comparison with the initial results produced by Filab in 2002 to March 2005.

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The average grade of the second assays was 2.19 g Au/t, which compares to 2.29 g Au/t for the original assays (Table 7.5). Thirteen samples showed poor correlation. When these thirteen samples are excluded from the results, the average grade of the second assays is 2.12 g Au/t, compared to an original result of 2.01 g Au/t. The correlation coefficient for this check assaying is 0.90, which is considered satisfactory (Figure 7.2).

Table 7.5 Summary of Reassays Performed by Filab in 2002-2005 Parameter Number of assays Average grade (g Au/t) Median grade (g Au/t) Minimum grade (g Au/t) Maximum grade (g Au/t) Standard deviation Coefficient of variation Initial assay 3,359 2.29 0.79 0.01 91.90 4.58 2.00 Second assay 3,359 2.19 0.87 0.01 99.51 4.87 2.22 Initial assay, adjusted 3,346 2.01 0.79 0.01 29.66 3.57 1.77 Second assay, adjusted 3,346 2.12 0.87 0.01 32.10 3.63 1.71

7.1.6.

Field Duplicates

Another quality control test was performed using duplicate samples from percussion drilling in the field. These tests revealed certain sample inversions at the laboratory, but did not significantly affect the database. A quality control assessment sheet was completed for every batch of results received. The laboratory was notified of each problem so that they could correct the problem and reassay the tray in question. The corrected results and reassays are included in the final database. This assay control procedure identified a number of problem situations, including: Displacement of assay standards from their original position in the assay order; Displacement of field duplicates from their original positions in the assay order; Grades more two standard deviations greater than the original duplicate; Grades more than two standard deviations less than the original duplicate; Data entry errors.

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A total of 854 field duplicates (3% of the total percussion drilling meters) were submitted as check assays between 1998 and March 2005 (Table 7.6). Normally, the samples were from percussion drilling, except in the case of a drilling incident or intersection with the dolerite. The average grade of the 271 duplicate assays by CGL from 1998 to 2000 was 0.97 g Au/t compared to an original value of 0.87 g Au/t. The average grade of the 583 duplicate assays by Filab from 2002 to March 2005 was 0.37 g Au/t compared to an original result of 0.36 g Au/t. The overall correlation coefficient for this check assaying was 0.90, which is considered satisfactory.

Table 7.6 Summary of Field (Percussion Drilling) Duplicate Assays by CGL (1998-2000) and Filab (2002-2005) Parameter Number of assays Average grade (g Au/t) Median grade (g Au/t) Minimum grade (g Au/t) Maximum grade (g Au/t) Standard deviation Coefficient of variation Initial assay CGL 271 0.87 0.07 0.00 20.20 2.38 2.73 Second assay CGL 271 0.97 0.06 0.00 34.00 3.04 3.15 Initial assay Filab 583 0.36 0.05 0.00 18.38 1.32 3.69 Second assay Filab 583 0.37 0.05 0.01 15.12 1.30 3.54

Exceptionally, in 1998, a total of 169 diamond drilling samples from 67 different holes (mainly in the CC-88 zone) were duplicated by quartz core samples (Table 7.7). The average grade for these samples assayed by CGL was 0.92 g Au/t, compared to an original value of 0.85 g Au/t. The overall correlation coefficient for this check assaying is 0.93, which is considered satisfactory.

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Table 7.7 Summary of Field Duplicates (Diamond Drilling) Assayed by CGL in 1998 Parameter Number of assays Average grade (g Au/t) Median grade (g Au/t) Minimum grade (g Au/t) Maximum grade (g Au/t) Standard deviation Coefficient of variation Initial assay 169 0.86 0.11 0.001 20.20 2.16 2.50 Second assay 169 0.92 0.09 0.003 19.60 2.24 2.44

7.1.7.

Twinned Drill Holes

A large proportion of the database (60% of the total number of holes drilled) consists of data from percussion drilling. Diamond drill holes were drilled near some of the percussion drill holes to test for possible biased results in the percussion drill holes. In all, 16 holes were twinned in the various mineralized zones. The results of these checks show that the distribution of assay results for each hole and its twin is generally similar, although the assay results for the cored holes are more variable. In some cases, the mineralization is slightly displaced between twin holes, a phenomenon that may be attributable to a spatial variation of the mineralization relative to the direction of some of the drill holes. In general, the results of the percussion drill holes are reproducible by the diamond drill hole, and vice versa. Therefore, despite some smoothing at the beginning and end of each pass (see Section 3.4.2.4), the percussion drilling results can be used as is for resources estimation. However, it must be recognized that even very close holes will always show some variability in mineralization grade and thickness, likely due to the nugget nature of the gold distribution, the geometry of the mineralization and the direction of the various drill holes.

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7.2 External Laboratories (Assay Precision Control) In order to check the assay precision of the laboratories used in the project, several series of coarse reject samples were shared between CGL (Denver) and SGS from 1998 to 2000. External laboratory ALS-Chemex (Val dOr) performed the check assaying from 2002 to March 2004. A total of 695 coarse reject samples were submitted to SGS for comparison with CGLs assay results in 1998 (Table 7.8). The average grade of the SGS assay results was 1.05 g Au/t, compared to an original CGL value of 1.09 in 1998. The overall correlation coefficient for this check assaying is 0.99, which is considered very satisfactory.

Table 7.8 Checks Between CGL and SGS in 1998


Parameter Initial CGL assay Second CGL assay SGS duplicate Initial CGL assay, adjusted Second CGL assay, adjusted SGS duplicate, adjusted

Number of assays Average grade (g Au/t) Median grade (g Au/t) Min. grade (g Au/t) Max. grade (g Au/t) Standard deviation Coefficient of variation

695 1.09 0.08 0.00 79.60 4.10 3.77

695 0.98 0.08 0.01 34.70 2.76 2.82

695 1.05 0.11 0.01 42.50 3.00 2.86

693 0.92 0.08 0.00 20.20 2.47 2.68

693 0.92 0.08 0.01 19.90 2.42 2.64

693 0.97 0.11 0.01 20.20 2.52 2.59

A total of 417 coarse rejects were submitted to CGL for comparison against SGS assay results in 1998 and 2000 (Table 7.9). The average grade of the CGL assay results was 0.26 g Au/t, compared to and original SGS value of 0.26 in 1998. The overall correlation coefficient for this check assaying is 0.99, which is considered very satisfactory (Figure 7.2).

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Table 7.9 Checks Between SGS and CGL in 1998-2000 Parameter Number of assays Average grade (g Au/t) Median grade (g Au/t) Minimum grade (g Au/t) Maximum grade (g Au/t) Standard deviation Coefficient of variation Initial assay SGS 417 0.26 0.04 0.01 19.71 1.13 4.35 Second assay SGS 417 0.28 0.04 0.01 25.60 1.38 4.93 Duplicata CGL 417 0.26 0.03 0.00 21.90 1.20 4.63

A total of 1,343 coarse reject samples, 1.5% of the total samples assayed from 2002 to March 2005, were submitted to ALS-Chemex for comparison against the assay results for Filab in Cayenne and Chenve (Table 7.10). The average grade of the ALS-Chemex assay results was 2.78 g Au/t, compared to an original Filab value of 2.97 g Au/t. These 1,343 coarse reject samples were part of an original group of 3,359 samples (Table 7.2) submitted to Filab for reassaying (Table 7.5). It should be noted that the average grade for this group of 3,359 samples is lower (2.18 g Au/t) that that of the 1,343 samples sent to ALS-Chemex because, as mentioned in Section 3.5.2, the selection of samples submitted for reassaying was not totally random, which invalidates statistical tests aimed at checking the equivalence of the reassay results. Despite this, the 1,343 sample reassay results for Filab and ALS-Chemex showed a correlation coefficient of 0.86, suggesting that the Filab assay results for the entire 2002-March 2005 drilling program were satisfactory (Figure 7.2). This data can therefore be used in resource estimation.

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Table 7.10 Checks Between Filab and ALS-Chemex, 2002-2005


Parameter Initial Filab assay Second Filab assay ALSChemex duplicate Initial Filab assay, adjusted Second Filab assay, adjusted ALS-Chemex duplicate, adjusted

Number of assays Average grade (g Au/t) Median grade (g Au/t) Min. grade (g Au/t) Max. grade (g Au/t) Standard deviation Coefficient of variation

1,343 2.97 1.02 0.01 91.90 5.75 1.94

1,343 2.88 1.00 0.01 99.51 6.33 2.20

1,343 2.78 1.01 0.01 65.83 5.21 1.87

1,333 2.69 1.01 0.01 29.38 4.28 1.59

1,333 2.55 0.99 0.01 29.02 4.04 1.58

1,333 2.54 1.00 0.01 28.44 4.10 1.61

In conclusion, the CGL assay results compare well with those of SGS for 1998 to 2000. Similarly, the ALS-Chemex assay results are comparable to the Filab results for 2002 to March 2005, but neither of the two groups can be subjected to statistical equivalence testing as the selection of samples for reassaying was not totally random.

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8.0 ADDITIONAL POTENTIAL

Once Camp Caiman enters production, exploration expenses will be offset by the synergy created by production, an actual view of the deposit and the acquisition of new geological and mining information. The Camp Caiman tonnage and resources are expected to increase significantly. In this context, and assuming that production stays at 5,000 tonnes per day, the mine life can be expected to be substantially lengthened. Considering the likelihood of the discovery of additional resources on the permits adjacent to Camp Caiman and the SMBG/CBJ-FRANCE permits, many more years of mine production can be expected to be added to the current schedule.

8.1 Future Resources in the Camp Caiman Area The geological and mining context surrounding the Camp Caiman deposit resembles that of the West African Birimian gold mining camps. Camp Caiman is probably the first of a large number of gold discoveries to come in northeastern Guyana. The geological context and deposit configuration are such that the current deposit is very likely to grow in the near future.

8.1.1

Nearby Extensions

The extensions in the immediate vicinity of the Camp Caiman deposit began to become evident during the most recent drilling program. Mineralized extensions were discovered in the immediate vicinity of the deposit (Table 4.1) near Scout Zone to the west and the south, and an additional showing was discovered in the Fourca Zone. Each extension represents additional ore not included in the current resource model, and remains to be delineated during mining of the deposit.

8.1.2

Depth Extensions

Directly under the pit locations (Figure 4.1, Figure 5.1, Figure 5.2), the deposit appears to extend into the hard rock at depths of more than 125 m below surface. As little drilling has been done to date in these extensions, they will be tested during mine operation at a more affordable cost. The current geological model clearly shows that these depth extensions could be considerable and potentially economic, thus representing an addition to the current resource.

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8.1.3

Regional Extensions

The geology and gold anomaly identified by Mining Inventory (Inventaire Minier) work in the 1990s continues to the east and west of the Camp Caiman deposit, which represents less than 30% of this geochemical anomaly (Figure 4.1). The western portion of the geochemical anomaly was partly tested but no mineralization in rock was found except a short mineralized section in one diamond drill hole to be re-evaluated. Adjacent permits Trsor and Patawa were briefly explored a few years ago. This work confirmed the extension of the gold geochemical anomaly over a distance of more than 5 km to the west, in the direction of the Trsor permit. Numerous distinct anomalies were also identified to the east on the Patawa permit. Considering the size of this anomaly and the fact that most of the work done since 1996 has focused on the Camp Caiman deposit, it is likely that other significant gold targets will be discovered on these permits, and will contribute to the prolongation of the Camp Caiman mining activities.

8.1.4

SMBG and CBJ-France Permits

On a more regional scale, the SMBG/CBJ France permits (Sainte-Marie, Changement, Orapu, Crique Voux, Maripa Sud-Est, Tortue; (Figure 8.1) have a gold potential whose size is only beginning to emerge. Located some 20 km from the future Camp Caiman mine site, these permits could prove a source of a considerable quantity of ore. Such ore would be sent to Camp Caiman via the new mine access road. Preliminary information to date indicates that there are major gold showings on each of these permits. A budget of US $1.47 million will have been invested in 2004 through a program to assess targets on the Sainte-Marie, Changement and Crique Voux permits. The program has produced good results and has been deemed highly satisfactory. In accordance with the agreement signed on April 4, 2000, and additional clause, between SMBG and CBJ-FRANCE, approximately US $1.4 million of an initial US $4.2 million budget remains to be spent by December 31, 2006 for CBJ-FRANCE to earn a 75% undivided interest in the SMBG permits.

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Cayenne
Montsinry

ORAPU
-2 RN
Roura

Atl an tic O

10 kilometres

ce an

PARAMACA
52 Camp Caiman
B A D H G E I C

CD -6

Future Access Road

430
Kaw

ARMINA
F

Rg
J K
Rgina

ina

GRANITE

Sy n form

OR APU

PARAMACA

CBJ-Caiman

Camp Caiman Project Location Plan

A) Camp Caiman Concession B) Trsor C) Patawa

SMBG/CBJ-France
D) Sainte Marie E) Changement F) Voux

CBJ-France
G) H) I) J) K)

Mt. Guadeloupe Orapu Maripa Maripa Sud-Est Tortue

Figure 8.1
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9.0 ORE CHARACTERIZATION

The Camp Caiman gold ore occurs in metasedimentary-type rocks derived from greywackes, siltites and pelites and containing small amounts of quartz porphyry and volcanic tuffs. The mineral host rock consists of quartz and feldspath with small quantities of carbonates. Within the mineralized envelopes, some of the feldspaths have been altered to micas, primarily muscovite and sericite. Near surface, the rocks have been altered to saprolite by weathering. In the mineralized zone, the saprolite is fine-grained and contains about 80% non-expanding clay minerals. Outside the mineralized zone, the saprolite is somewhat coarser and contains 50-60% clay, with 30-40% silts, mainly fine quartz. Given the high water content of the saprolite ore, this characteristic is one of the major, fundamental criteria for mill design. The gold in the saprolite of the Scout and CC-88 zones is relatively free and fine, averaging 75 microns, and is accessible to cyanide leaching. The gold in the unaltered rock occurs as free gold (45%) associated with quartz veins (20%), and as inclusions in sulfides (35%), particularly arsenopyrite and pyrite. The gold in these zones is generally fine, ranging in size from 2 to 60 microns with grains of up to 500 microns. The proportion of free gold available for gravity separation appears low; this is supported by the very limited history of panning on the site. The saprolite ore shows a high recovery rate by direct cyanidation. That is not the case for the hard rock ore, which has a significant proportion of gold finely associated with sulfides. Mineralogical studies show at nearly 35% of the gold is associated with sulfides. Selective leaching testwork confirmed that over 35% of the gold is associated with sulfides and is not accessible to direct cyanidation. This portion can be qualified as refractory to conventional processes. While overall sulfur grades for the sulfide ore assays were only 0.4-1.8%, the range of sulfides is wide. The predominant sulfides are pyrite, arsenopyrite and pyrrhotite. There are also small or trace quantities of chalcopyrite, bornite, sphalerite, pentlandite and numerous nickel, cobalt and arsenic complex minerals. The transition zone shows characteristics ranging from those of the hard rock through the saprolite. For the moment, given the tonnage involved, the hard rock and transition ores will be processed the same way as the saprolite. However, the refractory portion associated with the sulfides responds very well to the oxidation process and shows excellent recoveries. These results indicate the potential to improve recoveries should the quantity of hard rock ore increase.

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9.1

Gold Size and Distribution

Gold assays by size fraction done as part of testwork to determine gravity recoverable gold in the saprolite showed that 50% of the gold is in the minus 25 m, and 66% is minus 75 microns. These tests were performed on minus 20 mesh, unground ore. These assays confirm the fineness of the gold in the deposit, and correspond with what is seen in the hard rock ore. A mineralogical study on the hard rock ore crushed to 48 mesh showed that 46% of the gold is free, 34% is associated with sulfides and 20% is associated with silicate. Only 30% of the free gold is larger than 50 microns, which confirms the relatively poor gravity separation potential. Eighty-nine gold particles were seen: 32 free (3 to 120 microns), 10 attached to sulfides (1 to 42 microns), 4 exposed in the sulfides (6 to 36 microns) and 43 trapped in the sulfides (1 to 11 microns). Thirty-seven percent were over 10 microns, representing 48% of the exposed surface. Overall, the mineralogy seen in both the saprolite and hard rock zones shows a high proportion of fine gold, and confirms the refractory nature of some of the hard rock ore. These observations are validated by selective extraction tests, leading to the gold associations shown in Table 9.1.

Table 9.1 Recovery Versus Grind Size Composite Sample 1 Process Gravity/ Amalgamation NaCN leach HCl/NaCN leach HNO3/NaCN leach Residual Recovery Au (%) 3.7 60.2 5.2 25.4 5.5 Mineralogical Association Free gold Leachable gold (NaCN) Gold encapsulated in carbonates, pyrrhotite and geotite Gold encapsulated in other sulfides Gold encapsulated in gangue

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9.2

Metallurgical Testwork

9.2.1

Overview of Tests and Summary of Results

Metallurgical testwork has been performed on the Camp Caiman ore by various laboratories since 1997. Various testwork was done throughout the discovery process for the Scout, CC-08 and CC-88 zones. Most of the work was done on the hard rock ore, a portion of which is refractory to conventional cyanidation. The saprolite ore responded very well to conventional cyanidation. From 1997 to 1999, various testwork was primarily performed by Dawson Laboratories Limited for Asarco. Most of the initial testwork consisted of gravity separation and cyanidation. Later, the refractory nature of the hard rock ore led to the exploration of other processing methods. Flotation testwork was therefore performed to concentrate the sulfides and the gold. This was followed by testwork on ultrafine grinding of the concentrate and oxidation by bio-oxidation and pressure oxidation. The ultrafine grinding alternative did not produce very good results. The results of cyanidation on the post-oxidation concentrate, however, were excellent, matching those of the saprolite. The bio-oxidation testwork was done by Lakefield Research under the supervision of Goldfield Limited using their BIOX process. Rheological characterization and sedimentation testwork was done, with the testwork carried out by Pocock Industrial. Cyanide detoxification testwork using the SO2/AIR process was done by INCO technical services, and showed good results. Finally, some testwork was performed by AMTEC Limited as part of a study done by Bateman Mineral (Pty) Ltd using ultrafine grinding and alkaline pretreatment before cyanidation. Results were mitigated, and the technology remains highly uncertain in terms of the stability of the arsenic precipitate. In 2004, additional testwork was done by SGS/Lakefield to obtain confirmation data on cyanidation, gravity separation, flotation of a sulfide concentrate, bio-oxidation and pressure oxidation, CIP carbon load profiles, cyanide detoxification and environmental characterizations. For this testwork, dedicated holes were drilled and particular attention was paid to sample conservation. Samples were preserved in watertight barrels containing desiccant bags to prevent any sample alteration/oxidation. The samples were promptly shipped to the laboratory, where they were prepared

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and stored in a freezer. Particular care was taken during drilling of the hard rock to avoid the use of drilling additives, so as not to influence flotation results. Using the samples received composite samples with representative grades were made for three transition zones. The average grades obtained were very close to the average grades. The testwork done in 2004 showed consistently better results than earlier work. The results for

cyanidation testwork on the saprolite ore were the same with or without prior gravity separation. Gold dissolution appears to depend on cyanide concentration and grinding size, and not particularly on pulp density. A 40-hour residence time was selected to avoid the use of gravity separation and maintain a lower cyanide concentration. A 93 % recovery was selected given the variability of the ore, fluctuations in the operation and liquid losses. Adsorption testwork did not indicate any major problems. Given the availability of the CIP adsorption circuit at the Omai mine and the total cyanidation time selected, 36-hour direct cyanidation was selected, followed by a 12-hour adsorption circuit. This alternative also has the advantage of minimizing the required carbon inventories and the quantity of gold in the circuit. Direct cyanidation testwork confirmed the refractory nature of the hard rock ore as well as earlier results (recovery 60%). Alternative processing methods were tested for this ore. Flotation testwork was successful in recovering 87% of the gold content in a concentrate that represented only 3.7% of the feed quantity. The concentrate is a net producer of acid, an essential criteria for limiting the cost of an oxidation stage. Flotation testwork tended to show that the pyrrhotite does not contain gold. Three concentrate cleaner stages are required to obtain these results, as well as a gangue depressant. The flowsheet is aimed at optimizing the recovery of gold-bearing refractory ores, namely pyrite and primarily arsenopyrite, rather than only the gold. The concentrate will undergo a subsequent gold liberation stage (oxidation) and will then be recombined with the flotation tailings prior to joint cyanidation. Ultrafine grinding testwork was done on the concentrate to increase the degree of liberation. However, the results of subsequent cyanidation did not show any significant improvement in recovery. Oxidation testwork on the concentrate achieved excellent gold recoveries from both bio-oxidation and pressure oxidation. However, pressure oxidation yielded substantially better results than bio-oxidation. Furthermore, cyanide consumption is substantially lower using pressure oxidation (0.1 kg/tm vs 1.1 kg/tm of fresh ore). Cyanide detoxification testwork using the SO2/AIR process resulted in the reduction of WAD cyanide to less than 1 ppm exiting the mill, with relatively conservative SO2/cyanide ratios. The stability of the arsenic appears similar and meets the stability testwork criteria (Toxicity, Leaching, and Characteristic Potential).

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9.2.2

Ore Characterization and Grindability

Testwork began at the end of 1997 at Lakefield Research on three composite samples representing the saprolite, transition (saprock) and hard rock (sulfide) ores. The altered (soft) samples were prescreened to remove the 53 m fines. Work index values are presented for the coarse fractions only, and consequently are exaggerated for the sample as a whole. A summary of results is shown in Table 9.2 below. Table 9.2 Bond Indice (LR 9712089) Bond Indice (kWh/t) Samples Saprolite Saprock Sulfides % + 53 m 54 75 --Ball Mill 10.9 12.3 13.4 14.4 Sag Mill

Additional samples were submitted for testing in 1998, and ball mill work indices of 8.5 for the saprolite and 14.0 for the hard rock were obtained. After Cambior became involved in the project, a new series of samples were assembled and tested at Lakefield Research in 2004. The two composite samples prepared from saprolite samples represent the two ore deposits identified as the CC-88 and Scout zones, with particular care taken to ensure that the samples were representative. Sieve analysis showed that the CC-88 zone samples contain a significantly higher proportion of coarse material, namely the 75 m mesh fraction, than the Scout zone samples. Comparative results are shown in Table 9.3. Table 9.3 Comparative Results Coarse Material Content Sample C-88 Composite Scout Composite % weight + 75 m 66.5 39.1

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The hard rock (sulfide) ore was represented by a single composite sample labelled Rock. Lakefield carried out rod and ball mill grindability tests on the new samples and compared the results with previous testwork. Scrubbing tests were also done on the saprolite ore samples. The Lakefield report included an analysis of the results and grinding mill size recommendations for a variety of circuit configurations. Rod mill work indices were only determined for the hard rock sample, and were compared to previous samples. These comparative values are shown in Table 9.4.

Table 9.4 Work Index comparison Mill Rod Sample Mesh m Hard rock (1998) Hard rock (1999) Rock (2004) 1.180 1.180 1.180 F80 m 8.522 10.205 9.933 P80 m 770 916 906 Work Index (kWh/t) 13.1 18.3 14.3

The Bond ball mill grindability tests were performed on the samples at various grinding screen sizes. The saprolite samples were deslimed with a screen to produce an appropriate feed for testing. The target grind size for the saprolite was 57 m for the coarse fraction, and the final grind sizes for the rock sample tested were 39 and 74 m. The test results are shown in Table 9.5, along with results of earlier testing.

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Table 9.5 Comparison of Ball Mill Work Indices Sample Grinding Mesh m Hard Rock (1998) Hard Rock (1999) Rock (2004) Rock (2004) Saprock (1998) Saprolite (1998) Saprolite (1999) Saprolite - CC-88 (2004) Saprolite - Scout (2004) Saprolite - complete (2004) 75 150 106 53 75 75 75 75 75 75 F80 m 2,111 2,614 2,152 2,163 1,694 1,670 1,363 1,690 1,538 725 P80 m 58 99 77 40 58 66 53 55 57 36 Work Index (kWh/t) 13.4 14.0 12.3 12.4 12.3 10.9 8.5 10.1 10.6 6.2

Scrubbing tests were done to determine whether a scrubbing process would be appropriate for the processing of the saprolite/laterite feed. The results were assessed on the basis of subjective observation of the formation of clayey lumps depending on the percent solid of the slurry. The results are shown in Table 9.6 below.

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Table 9.6 Comparative Assessment Saprolite Lumping Effect Test S-1 S-2 S-3a S-3b S-3c S-4 S-5 S-6 Conclusion The results of the testwork were reviewed for the purposes of feasibility study mill design, and specific values were determined for the sizing of the grinding circuit. For the saprolite, a value of 5.85 kWh/t was selected, which represents consumption of 4.0 kWh/t for a target grind of 160 m. As a comparison, Rosebel consumes 5.2 kWh/t with a target of 75 m. For the hard rock ore (or sulphide sample), the average work index determined by the many test programs was used, namely 13.0 (kWh/t) for a target grind of 47 m for the rock. Table 9.7 shows the work indices determined from the numerous test programs. Sample Scout Scout Scout Scout Scout CC-88 CC-88 CC-88 % Solids 50 50 60 55 45 45 50 55 Time (min) 5 15 2 2 11 5 5 5 Quantity Clayey Lumps Moderate Moderate Very large Very large Small Very small Very small Very small

Table 9.7 Work Indices Determined Type de rock Saprolite Transition (Saprolite) Hard Rock kWh/t 5.9 8.5 13.0

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9.2.3

Gravity Concentration Testwork

Numerous gravity concentration tests were performed from 1997 to 2003, with wide-ranging results. The tests were primarily carried out by panning, amalgamation and tabling. These methods indicate the amount of free gold present, but are poor indicators of gravity recoverable gold. In 2004, Lakefield did gravity separation tests on a saprolite composite sample and a hard rock sample labelled Rock. These tests were carried out using a gravity concentrator (Knelson), with the concentrates washed on table Mozley. The tests were performed on various size fractions and relatively large volumes. The results showed a maximum recovery of about 20%. Recoveries for the saprolite ore were similar to those for the hard rock at a grind size or P80 of 39 m. The results of these tests are shown in Table 9.8 below.

Table 9.8 Gravity Concentration (Knelson et Mozley) Zone Saprolite Saprolite Rock Rock Rock Rock Grind P80 (m) 27 234 39 116 82 82 Recovery Au (%) 18.8 22.8 20.1 8.2 10.1 10.5

Lakefield also performed a gravity separation test on the saprolite composite sample using the standard GRG (Gravity Recoverable Gold) test. It should be noted that this value represents the maximum theoretical extraction, and that final recovery depends on the gravity recovery effort Table 9.9 (proportion of the feed processed).

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Table 9.9 Overall Recovery GRG Recovery (%) 32.2 41.5 48.7 P80 (m) 143 73 47

Gravity recovery of gold yielded highly variable results over the many tests performed. In general, the gravity recovery values lie between 10 and 25% for the saprolite zone and 10 and 20% for the hard rock zone. As the absence of gravity separation does not particularly impact overall recovery, the ore will be tested further once industrial-scale processing is underway, to determine whether a gravity circuit is appropriate. This will also indicate whether the arsenopyrite recovered in gravity separation would be a potential problem in gold refining.

9.2.4

Cyanide Leach Testwork

Numerous test programs have been conducted since 1997 to determine the recovery rate. Overall, the saprolite ore responds very well to the cyanidation process. Recoveries obtained for the most representative programs, those conducted in 1999 and 2004, were in the order of 92 to 97%. An average recovery of 93% can be considered realistic given the liquid losses, fluctuations and the variability of the ore. The latest tests shows that direct cyanidation of the ore yields the same recovery as cyanidation in combination with gravity concentration. The gold in the saprolite ore is fine. The speed of cyanidation appears to be influenced by grind size and cyanide concentration but not particularly by slurry density. A longer cyanidation time was selected (40 hours combined cyanidation plus CIP) in order to avoid the use of gravity concentration and keep residual cyanide concentrations as low as possible, as the cyanide must undergo a detoxification process. Cyanide consumption is relatively low, ranging from 0.05 to 0.40 kg/t. The economic optimum is a 0.34 g/L NaCN concentrate, which represents a net consumption of 0.3 kg/t, including residual cyanide recycling. Table 9.10 and Table 9.11 show the results of testwork done in 1999 on the two main zones.

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Table 9.10 Zone 88 Saprolite - Gravity / Cyanidation Gravity Tailings (1999) Feed Level Surface Surface Surface Surface Intermediate Intermediate Intermediate Intermediate Deep Deep Deep Deep Calculated* (g/t Au) 3.44 4.82 4.70 4.55 4.20 4.46 4.47 4.58 4.49 4.70 4.59 4.66 Concentration NaCN (g/L) 0.060 0.125 0.250 0.500 0.060 0.125 0.250 0.500 0.060 0.125 0.250 0.500 Gravity Recovery Au (%) 2.4 2.2 2.3 2.4 2.7 2.0 2.0 1.9 3.2 5.4 5.6 5.5 * Gravity Tailings Cyanidation Recovery Au (%) * 93.0 93.6 94.3 94.7 94.3 94.6 95.3 92.6 56.5 86.2 92.6 91.9 Overall Recovery (%) 94.0 93.7 94.4 94.8 94.4 94.7 95.4 92.0 57.9 86.9 93.0 92.3 Consumption (kg/t) NaCN 0.01 0.004 0.06 0.12 0.01 0.02 0.07 0.10 0.03 0.04 0.08 0.14 CaO 2.3 2.5 2.5 2.5 2.4 1.7 1.7 1.7 2.5 2.5 2.5 2.5

Table 9.11 Zone Scout Saprolite Gravity/Cyanidation Gravity Tailings (1999) Feed calculated (g/t Au) 2.92 3.04 3.06 3.16 2.62 2.77 2.54 2.68 2.35 2.48 2.50 2.50 Concentration NaCN (g/L) 0.600 0.125 0.250 0.500 0.600 0.125 0.250 0.500 0.060 0.125 0.250 0.500 Gravity Recovery Au (%) 30.1 29.3 29.2 28.5 6.1 5.8 6.3 6.0 30.9 29.8 29.6 29.6 * Gravity tailings
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Horizon Surface Surface Surface Surface Intermediate Intermediate Intermediate Intermediate Deep Deep Deep Deep

Cyaniadation Recovery Au (%) 89.4 94.4 94.4 93.4 93.5 93.9 93.3 93.7 92.8 93.1 93.2 93.2

Overall Recovery Au (%) 92.6 96.1 96.1 95.3 93.9 94.2 93.7 94.0 95.0 95.2 95.2 95.2

Consumption (kg/t) NaCN CaO 0.01 2.5 0.03 2.6 0.07 2.6 0.11 2.6 0.01 0.04 0.06 0.14 0.02 0.02 0.07 0.11 1.3 1.4 1.3 1.3 2.1 2.2 2.2 2.2

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Testwork done in 2004 was performed on a composite sample from the CC-88 and Scout zones. All tests were therefore performed on the same composite sample to determine the optimal processing conditions. The composite was created from fresh drill samples, with particular care taken to preserve the samples and limit any undesirable influence. Overall, results were excellent, ranging from 97% to 99% for all the various cyanidation conditions. The testwork was aimed at determining the effect of gravity separation, grind size, percent solids and cyanide concentration. The results of the testwork performed in 2004 are given in Table 9.12 below.

Table 9.12 Cyanidation Saprolite composite (2004) P80 (m) WO WO WO WO WO WO GT GT GT GT GT GT GT GT GT 327 57 45 ~35 25 <13 234 24 24 24 24 32 32 32 32 Concentration NaCN (g/L) 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.75 0.50 0.25 1.00 1.00 1.00 1.00 Au Recovery Cyanidation (%) 97.1 97.6 98.9 98.5 99.1 98.9 92.4 98.0 98.2 97.9 96.4 97.2 97.9 97.4 96.9 Cyanidation and gravity separation (%) ------94.1 98.4 98.6 98.3 97.2 97.9 98.4 98.0 97.6 WO: whole ore GT: gravity tailings The hard rock ore can be qualified as partially refractory, with recoveries of 45-70%. Selective leach testwork (Table 9.1) and mineralogy indicate that a good part of the ore, namely 25-35%, is finely associated with sulfides, particularly arsenopyrite. The hard rock ore of the Scout and CC-08 zones appears to be slightly less refractory that that of the CC-88 zone. The presence of pyrrhotite can also have a considerable impact on cyanidation efficiency and cause results to vary. Consumption NaCN (kg/t) 0.35 0.11 0.02 0.35 0.20 0.38 0.12 0.15 0.19 0.09 0.06 0.15 0.18 0.19 0.23 Consumption CaO (kg/t) 1.8 1.8 1.8 1.9 1.0 2.7 1.5 1.5 1.4 1.4 1.5 1.5 1.6 1.5 1.6

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The recovery for the Scout zone is around 68%, while the CC-88 shows up to 60% recovery for a fine grind using aeration to control the impact of the pyrrhotite and cyanide consumption Table 9.13 and Table 9.14 show the results as a function of cyanidation conditions. A test on a composite of samples 1, 2 and 3 yielded an average recovery of 60.2% for an 80% minus 71 m grind, 24 hours of pre-aeration and 0.5 g/L of cyanide.

Table 9.13 Gravity separation/cyanidation testwork Sulfides (1998) Composite sample CC-108-97 CC-108-97 CC-108-97 CC-135-97 CC-135-97 CC-135-97 CC-129-97 CC-129-97 CC-129-97 NaCN (g/L) 0.25 0.50 1.00 0.25 0.50 1.00 0.25 0.50 1.00 Au Recovery (%) - Gravity Tailings Target P80, (m) 150 51.0 55.3 59.0 48.9 48.1 49.6 42.0 40.8 41.8 106 58.2 59.4 59.9 53.1 51.9 52.9 44.7 42.3 46.5 75 59.5 63.6 60.8 53.3 53.8 54.5 46.0 47.2 44.7 Average 56.2 59.4 59.9 51.8 51.3 52.3 44.2 43.4 44.3 Au Recovery (%) Total 57.9 60.9 61.4 52.5 52.1 53.1 44.9 44.1 44.9 Average NaCN Consumption (kg/t) 0.37 0.54 0.70 0.43 0.56 0.94 0.31 0.36 0.51

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Table 9.14 Recovery vs grind size - Sulfides (1998) NaCN Concentration Composite Sample CC-129-97 CC-129-97 CC-129-97 CC-129-97 CC-129-97 CC-129-97 CC-129-97 CC-129-97 CC-129-97 CC-129-97 CC-129-97 (g/L) 0.25 0.25 0.25 0.25 0.50 0.50 0.50 0.50 1.00 1.00 1.00 1.00 P80 (m) 155 94 74 53 148 94 68 52 149 93 70 52 Calculated feed (g/t Au) 5.18 6.06 5.98 5.78 5.86 5.82 5.66 5.50 4.24 2.30 2.26 2.09 Au recovery (%) 51.0 58.2 59.5 63.2 55.3 59.4 63.6 62.8 59.0 59.9 60.8 62.5 Consumption NaCN (kg/t) 0.31 0.25 0.54 1.00 0.28 0.60 0.74 1.05 0.44 0.71 0.96 1.69

Table 9.15 Recovery vs grind size - Transition P2391B (1997) Test 2 4 13 16 19 24 30 Feed (g/t) 2.57 2.84 4.05 1.47 2.16 2.18 1.47 Calculated Feed (g/t) 2.21 2.34 4.03 1.30 2.24 1.90 2.58 NaCN concentration (g/L) 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Grind P80 (m) 72.6 78.6 70.7 35.2 72.2 72.2 74.9 Recovery (%) 79.6 88.5 46.4 81.5 49.6 73.1 93.4 NaCN consumption (kg/t) 1.34 0.32 1.32 0.73 1.63 0.83 0.33

Conclusion Numerous tests were performed on the three ore types (surface altered. transition and hard rock) for the two zones (CC-88 and Scout).

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In general, gold recovery for the altered ore (saprolite/laterite) is between 85 and 98%, and is relatively unaffected by the inclusion of a gravity concentration stage for grades of 2-3 g/t Au. A recovery of 93% for the processing of the saprolite/laterite ore (cyanidation) was used for mill design criteria purposes. The hard rock ore shows gold recoveries ranging from 45% to 95%. The low recoveries appear to be a function of the quantity of arsenopyrite contained in certain zones at depth. Values of up to 95% were obtained with alternative processes (pressure leaching and bio-oxidation). However, these processes do not show a positive return at the economic conditions used for the study. It appears that low values of gold extraction are linked to the quantity of arsenopyrite contained in some of the zones at depth. In general, an overall recovery of 60% would appear to be representative of the difficult zones at depth with a high arsenopyrite content, and the zones at depth with a lower sulfide content. A recovery of 58% for the processing of the hard rock/sulfide ore was used for mill design criteria purposes. The testwork performed on the transition showed equally variable results, it seems to reflect the sulfide content. As the transition rock represent a very small amount of the mining reserve (<4%), minimal amount of work was performed on this ore type, see Table 9.15.

9.2.5

Thickening and Sedimentation Testwork

Sedimentation testwork was done in 1997 and by Pocock Industrial in 1999. Static testwork by Pocock was done on the same samples at a P80 grind size of 75m. The overflows obtained were clear with a low solids content. Results are presented in Table 9.16.

Table 9.16 Sedimentation static testwork (1999) Zone CC-88 Scout CC-88 Scout Flocculant Expected % solids 50 - 60 50 - 60 42 - 49 47 - 48 Specific area m2/t solids/day 0.20 0.27 0.20 0.27 0.31 0.47 0.21 0.32

Hychem AF303

Cytec SF127+

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The results of high rate thickening testwork by Pocock Industrial are shown in Table 9.17 below.

Table 9.17 Sedimentation High rate thickening testwork Zone CC-88 CC-88 Scout Scout Feed % solids 15 20 15 20 % solids expected 45 - 50 45 - 50 45 - 50 40 - 50 Net feed rate m2/m3/hr 0.20 0.27 0.20 0.27 0.31 0.47 0.21 0.32

The required thickening surface values determined by metallurgical testwork are distinctly higher than the design values used. The design values used were based on experience acquired at the Omai and Rosebel operations. Rosebel currently operates at 0.122 m2/tonne solids/day processing saprolite, and this is the value used to size the thickener.

9.2.6

Miscellaneous Slurry Characteristics

In October 1999, Pocock Industrial performed slurry rheology tests on the Camp Caiman samples provided by DML/Asarco. The information generated by these tests was used to determine the degree of viscosity of the slurries, which influenced the choice of process equipment (pumps. pipelines. screens and agitators). High viscosity values have a direct influence on power requirements. The saprolite/laterite type ores produce excessively viscous slurries at a relatively low percent solids compared to silica ores. The tests were done on thickened slurries for the CC-88 and Scout zones (shallow. intermediate and deep levels in both cases). The slurry samples came from sedimentation tests performed by DML and Pocock. For the CC-88 zone, tests were done on slurries ranging from 39.2% to 60.8% solids. The apparent viscosity ranged from 32 to 823 centipoises (for a shear rate of 100 sec-1).

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For the Scout zone, tests were performed on slurries ranging from 39.3% to 55.0% solids. The apparent viscosity ranged from 21 to 134 centipoises (for a shear rate of 100 sec-1). Based on these results, DML considers that slurries at or below 50% percent solids would produce a degree of viscosity allowing the use of normal processing equipment. The percent solids used in the design criteria reflect both these test results and the experience acquired at the Omai and Rosebel operations which process similar ores. No tests were done to check whether the slurry is corrosive. However, the slurry is assumed to be corrosive, as it is at Rosebel.

9.2.7

Flotation Testwork

As a portion of the gold is finely associated with the sulfides, alternative processing testwork was done. Flotation tests were performed to concentrate the gold and the sulfides. Tests done from 1997 to 2003 were aimed at maximizing gold recovery in the concentrate. A bulk sulfide flotation was successful in concentrating 85 to 90% of the gold, representing 12 to 14% of the weight with a grade of 25 to 35 g/t. The concentrate proved to contain a considerable quantity of carbonates (about 35%), which substantially increases the cost of oxidizing the sulfides, whether by biooxidation or pressure oxidation. Various processing scenarios were tested in an attempt to decrease the quantity of carbonates in the concentrate, without positive results. Various hypotheses were advanced to explain the flotation of the carbonates, one of which was the use of a drilling additive (Biocut). Slightly better recoveries (63%) were obtained from cyanidation testwork using an ultrafine grind of the concentrate. In 2004, a new composite sample was created using fresh samples, with particular care taken to preserve the samples. All tests were performed on the same composite sample. The goal of these tests was to produce concentrates for additional pressure oxidation and bio-oxidation testwork, optimize flotation to produce a concentrate with fewer carbonates (to reduce acid consumption prior to pressure oxidation), to reduce the quantity of concentrate and to provide design criteria for a future flotation circuit. Concentrate cleaning stages were introduced during this testwork. Lastly, the final flowsheet was tested using cycled flotation tests. Table 9.18 shows the test results for the collectors and depressants.

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Table 9.18 Flotation Collector and Depressant Assessment Cleaner Concentrate Collector R3S/SIBX R3S/SIBX MPG2/SIBX SIBX SIBX BMT/SIBX ECF3/SIBX R208/SIBX SIBX* SIBX 3418A/R208 3418A/PAX 3418A/PAX SIBX** Depressant DQ-7 Na2SiO3/NaHPO4 DQ-7 -DQ-7 DQ-7 DQ-7 DQ-7 DQ-7 DQ-7 DQ-7 DQ-7 DQ-7 -% Weight 4.55 4.63 4.13 1.89 3.62 3.59 4.58 3.84 3.74 4.01 1.32 3.22 4.11 2.92 g/t Au 68.1 57.6 83.2 19.6 83.1 79.0 65.5 75.9 90.5 83.7 92.2 59.7 74.4 117.0 % distribution Au 79.3 75.8 79.2 8.9 72.5 73.7 76.7 73.4 83.7 84.3 28.9 51.5 80.7 85.8 Rougher Concentrate. % Weight 8.5 12.3 12.9 6.5 10.8 9.2 12.4 12.4 -17.6 10.3 13.9 11.5 10.1 % Distribution Au 85.7 85.8 88.4 10.8 79.4 79.9 81.8 84.1 -91.7 41.7 88.7 87.9 90.8

* Cyclic test ** 1:1 saprolite-hard rock mix

This series of tests resulted in the design of a basic circuit capable of producing a concentrate representing less that 4% of the flotation feed weight, with a gold recovery of 83.7% and a 19.4% CaCO3 content. Additional tests were done specifically to assess the calcite depressants with the goal of producing a concentrate with a lower CaCO3 grade, which would be beneficial for the pressure oxidation process. The results of these tests are shown in Table 9.19

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Table 9.19 Calcite Depressant Assessment Cleaner Concentrate Depressant DQ-7 DQ-8 GLQ % Weight 4.26 3.88 4.59 g/t Au 95.3 114.0 88.8 % Dist. Au 84.7 82.5 52.3 Rougher Concentrate % Weight 16.0 15.6 15.8 g/t Au 27.3 31.5 28.4 % Dist. Au 91.1 91.7 90.8

Results indicated that depressant DQ-8 would be a good choice, yielding a final concentrate with only 4.9% CaCO3. Cyclic testwork was done, with test F-29 producing the best results: 87% recovery in a concentrate of 3.3% of the feed quantity, with 4.9% CaCO3.

9.2.8

Bio-oxidation/Pressure Oxidation Testwork

Sulfide oxidation testwork was done on the concentrates produced. Oxidation of the concentrate, whether by bio-oxidation or pressure oxidation, resulted in excellent liberation of the gold, with recoveries of over 90% compared to only 60% for the fresh ore. The reduction in the presence of carbonates in the concentrate is expected to reduce acid requirements. The solutions produced can be neutralized using the mill tailings to stabilize the arsenic, as the tailings contain a high level of carbonates. Testwork in 1999 on cyanidation of the oxidized concentrate combined with the flotation tailings yielded an overall recovery of 93% in both cases. The 2004 results showed that the pressure oxidation process produced even better results while consuming nearly 1 kg/t less cyanide that the BIOX process. Furthermore, the BIOX process tends to produce a high level of thiocyanate due to the presence of elemental sulfur generated by the bacterial activity. The reduction of carbonates in the concentrate reduces the acid requirements, and the presence of carbonates in the mill tailings allows lower-cost neutralization of the the solutions after oxidation. Pressure oxidation in an alkaline environment was tested, with inconclusive results. Table 9.20 shows a summary of the results of these tests.

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Table 9.20 Oxidation and Cyanidation - Ore and Flotation Concentrates Test POX-CIL-1* POX-CIL-2** POX-CIL-3** BIOX-CIL-1** BIOX-CIL-1B** BIOX-CIL-2** Type of Oxidation alkaline acid acid bacterial bacterial bacterial Oxidation Sulfur (%) 78.4 99.0 99.0 58.2 78.3 95.5 Recovery Au CIL (%) 73.7 99.9 99.2 92.8 91.0 91.2 Consumption NaCN CaO 0.2 1.3 1.4 24.7 1.1 52.9 24.0 29.7 26.9 14.9 20.5 13.4

POX: Pressure oxidation (autoclave) BIOX : bio-oxidation *Whole ore ** Flotation concentrate

Oxidation testwork clearly showed that the oxidation process yields high recoveries for ore containing gold locked in the sulfides (particularly arsenopyrite). Gold recovery for these types of ore rises from 5560% to over 90%. Such a circuit would appreciably increase the complexity of the processing plant (addition of a flotation circuit, an autoclave or bio-oxidation circuit and an oxidation fluid neutralization circuit). While using an oxidation process would result in a better recovery. The economic analysis does not show a positive return at the conditions used for this study.

9.2.9

Cyanide Detoxification Testwork

In 1999, as part of the work done by DML, cyanide detoxification tests were done using the INCO SO2/air process. The tests were performed by Inco technical personnel. A composite sample was prepared for the two ore zones (Scout and CC-88). Samples representing the various grades and levels (as a function of depth) were used to prepare the composite sample. The sample underwent cyanidation under the following conditions: target grind size P80 of 75 microns, 48-hour leach time at a NaCN concentration of 0.125 g/L, followed by a 12-hour CIP stage.

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At the end of the test, the carbon was screened and the slurry was used for cyanide detoxification tests. Another series of tests were done at a higher cyanide concentration of 0.250 g/L. The test results at a concentration of 0.125 g/L NaCN produced a treated effluent that meets the United States Environmental Protection Agency (USEPA) National Drinking Water Standards (NTWS). The feed slurry contained 37 mg CNwad/l (72 mg/l NaCNfree) at the end of the CIP stage. The slurry was treated with 6.61 g SO2/g CNwad (in sodium metabisulfite solution form) and 21.9 mg/l of Cu+2/l (in copper sulfate form) at a pH of 8.0 and with a retention time of 32 minutes. The treatment effluent contained 0.33 mg/l CNwad (less than 0.2 mg/l CNfree), 0.09 mg/l Cu. 0.10 mg/l Fe and 0.1 mg/l Ni. In 1999, the NTWS standard was 0.2 mg/l NaCNfree. 1.0 mg/l Cu and 0.3 mg/l Fe (there was no published standard for nickel at the time). (Note: CNwad refers to weak acid dissociable cyanide). The results of slurry processing at an initial concentration of 0.250 mg/l NaCN showed that a retention time of 64 minutes using 4.5 g SO2/g CNwad was required to obtain an acceptable treatment effluent. Copper need not be added to obtain an acceptable effluent, but the addition of 5 to 20 mg/l of Cu+2 solution (in CuSO4 form) resulted in lower residual CNwad values. The addition of copper also proved beneficial to process stability. A 30-minute retention time was determined to be sufficient in the laboratory. but better results were obtained with a 60-minute retention time. In 2004, Lakefield performed cyanide detoxification tests on the cyanidation slurries on the hard rock and saprolite tailings and the pressure oxidation and bio-oxidation products combined with the flotation tailings. These tests confirmed the SO2 consumption forecasts and produced the desired result, namely a tailings containing less than 1 ppm of CNwad exiting the mill, in every case. The results of these tests are summarized in Table 9.21 and Table 9.22

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Table 9.21 Cyanide Detoxification Direct Cyanidation Time (min) -130 61 60 34 -90 48 58 CNT mg/l 124 ---200 4.8 4.5 CNWAD* mg/l 1.2 1.1 1.3 1.0 0.4 190 0.2 0.2 <0.1 Cu mg/l 2.5 -0.46 0.09 <0.05 9.7 -0.1 0.3 Fe mg/l 3.5 Zn mg/l 0.8 ---25 2.6 7.0 3.4 ----

Composite Saprolite Test 1.1 (batch) Test 1.2 (continuous) Test 1.3 (continuous) Test 1.4 (continuous) Rock Test 4.1 (batch) Test 4.2 (continuous) Test 4.3 (continuous)

*: picric acid test

The European Commission Best Available Techniques (BAT) document states that the SO2/Air must produce a material containing less than 2.0 mg/L of easily liberatable cyanide. This target was reached in the tests shown in Table 9.21.

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Table 9.22 Cyanide Detoxification Oxidation Tailings + Flotation Tailings Time (min) -60 47 50 34 -90 48 58 CNT mg/l 215 -0.1 --280 -4.2 0.3 CNWAD* mg/l 210 0.7 0.7 1.1 1.7 279 0.1 4.6 <0.1 Cu mg/l 7.4 -0.25 0.29 0.25 21 -1.5 0.5 Fe mg/l 2.8 Zn mg/l --0.6 -------

Composite Feed (POX) Test 2.1 (batch) Test 2.2 (continuous) Test 2.3 (continuous) Test 2.4 (continuous) Feed (BIOX) Test 3.1 (batch) Test 3.2 (continuous) Test 3.3 (continuous)

0.2 1.5 0.4

POX: pressure oxidation (autoclave) BIOX: bio-oxidation * : picric acid test

9.2.10 Arsenic Arsenic is another element that must be treated to meet environmental standards. Testwork was done on the slurry after the cyanide detoxification stage. Results are shown in Table 9.23. Table 9.23 Feed Description Molar Ratio (Fe/As) Slurry As (ppb) AS2 AS3 AS1 50 95 50 260 29 280 181 74 99 <1 <1 <1 Filter 5-10 m Product Filter 0.45 m

The results indicated that the ferric arsenate crystals produced on precipitation with the ferric sulfate are relatively fine, and that they will be captured by the thickening process used to produce the tailings sludge. The European Commission BAT July 2004 document mentions that the precipitation by ferric sulfate technique used can produce effluents with less than 0.5mg/L, which we have demonstrated.
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10.0 MINERAL RESOURCES ESTIMATION

The exploration team produced the first model to combine the Scout, CC-08 and CC-88 zones in April 2004, and an updated was done in June 2005 with the addition of the new results.

10.1 Geological Interpretation Several attempts were made to produce a model for Camp Caiman. The model used for resource estimation is based on all the geological data collected by the exploration team. The model shown is consistent with this data. All the geological profiles and mineralized bodies were projected section by section onto paper. All the geological contacts and ore zone outlines were traced by the senior project geologists. These interpretations were digitized by computer personnel under the supervision of the head of the project. The usual rock codes were used for the geological model, and the mineralization was integrated into a main mineralized envelope based on the characteristics common to the overall deposit. The contacts of the various types of weathered materials (laterite, saprolite, transition zone, hard rock) were traced by the senior project geologists under the supervision of the head of the project. Each weathered rock unit was assigned a unique rock code to be incorporated into the mining block model.

10.2 3D Modeling The 3D model created and validated by the geology team was turned into a mining block model using Gemcom, where each block is assigned a rock code corresponding to the type of rock and/or weathered material occupying the block. In order to reproduce the volumes of the mineralized body as accurately as possible, the volume percentage of ore and waste is calculated for each block in the model. For the orebody overall, the mineralized blocks are referenced to a precise topographic elevation. The blocks are cubic, with 5-metre sides, and bench heights are set at a constant of 5 m as well. The model limits exceed the deposits know extents by about 200 m horizontally and 35 m vertically.

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10.3 Compositing Once the geological and orebody contacts have been digitalized, all the raw assay results within each geological unit defined were composite into 5-metre lengths that reflected the bench height for mining. Each composite has been tagged with a specific rock code based on the geology and the alteration level of the primary rock. All composites with lengths less than 1 metre at the edge of the solid were discarded. Decile analysis on the 5m composites defined capping value of 20 g Au/t for Scout Zone and 30 g Au/t for the CC-88 Zone (Capping is applied during the interpolation process).

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Table 10.1

Description Saprolite Transition Rock Total Saprolite Transition Rock Total Saprolite Transition Rock Total Ore

Code 1700 2700 3700 *700 1061 2061 3061 *061 1100 2100 3100 *100 *100 *061

N 4429 175 1395 5999 873 42 406 1321 12215 1279 3415 16909 18230

5 meter composite gold value stastistic Average Median Minimum Maximum 1,73 1,21 2,02 1,78 0,06 0,06 0,03 0,05 0,10 0,09 0,1 0,1 0,1 0,82 0,78 0,95 0,84 0,02 0,01 0,00 0,01 0,05 0,04 0,04 0,05 0,05 0,00 0,002 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 43,03 10,93 29,84 43.03 2,8 0,73 3,8 3,8 7,00 2,53 8,22 8,22 8,22

Q25 0,47 0,50 0,47 0,47 0.00 0,00 0,00 0,00 0,02 0,02 0,01 0,02 0,02

Q75 1,74 1,29 2,22 1,82 0,06 0,03 0,00 0,04 0,13 0,11 0,11 0,13 0,12

Variance 7,95 2,52 9,04 8,07 0,03 0,02 0,04 0,03 0,03 0,02 0,06 0,03 0,03

Std. Dev. 2,82 1,59 3,01 2,84 0,17 0,14 0,21 0,18 0,16 0,15 0,24 0,18 0,18

Outside minralization

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10.4 Variography Semi-variograms calculated as correlograms of 5m composites generally showed better transitional structures than the traditional or relative variograms for most zones considered here. Directional correlograms with 5m lags (10m in rock) were calculated with a 30 angular tolerance. The results of the correlogram modeling are listed on Table 10.2. Two spherical models were used to fit the correlogram data. CO, C1 and C2 are respectively the nugget, first and second sill values with corresponding ranges 1 and 2. The ZYZ rotation of the correlogram search ellipse is based on the Gemcom convention (positive counter-clockwise around each axis). Note that because of the small number of pairs available, saprock composites were combined with their saprolite counterpart to constitute a sap+saprock group and that CC-08 composites were combined with their CC-88 counterparts.

Table 10.2 Modeled Correlograms for Camp Caiman Scout, and CC08+CC88 zones Rotation Zone Scout Sap/saprock Rock Sap/saprock Rock Co 0.46 0.63 0.20 0.33 C1 0.41 0.10 0.45 0.51 C2 0.12 0.26 0.35 0.15 Z -37 -17 -67 -72 Y -70 58 -40 -49 Z 63 32 32 27 Range 1 (m) Z1 16 72 28 28 Y1 18 17 45 7 Z1 55 3 38 28 Range 2 (m) Z2 33 13 44 25 Y2 100 113 75 146 Z2 200 150 100 125

The correlogram ranges suggest that for the Scout zone the direction of best continuity (i.e. range in the Z1 and Z2 directions) is striking EW and dipping 20 E while for the combined C08 and C88 zones it is disc shaped, striking NS and dipping 50 E. This is similar to what is suggested by the mineralized envelopes but may differ considerably at a local scale in many locations of the orebody. CC-88 rock correlograms are comparable to their saprolitic counterparts both in directions and ranges while for Scout, the dipping directions are almost perpendicular to each other (as shown by the Y-axis

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principal directions in sap and in rock). In the case of the Scout rock correlograms however, the lack of pairs (only 147 composites used) makes their semi-variograms a lot more difficult to model. We decided to use a spherical search volume instead of an ellipsoidal one because it was almost impossible to fit an ellipsoidal search to the convoluted shape of the mineralized zone everywhere throughout the orebody. Validating the interpolation results near the fold noses showed that for measured and indicated passes, composites located on one flank rarely contributed to the grade interpolation of blocks located on the other flank. Finally, because de second structure (C2) weakly contributed to the overall model variability in Scout and CC-88 (rock), we decided to limit the indicated search range to one comparable to the maximum search range of the first correlogram structure (C1), or approximately 40m. Details on the other interpolation parameters are given in section 3.7.1.3.

10.5 Mineral Resources Block model grade estimation was done using Gemcom software. All the grade estimation was done with the inverse distance cube technique using 5-metre composites. Interpolation was done for the entire orebody using a generally spherical search with a range that varied depending on the category of resource being estimated. The limits of the mineralized solids were rigorously respected in the definition of minable resource.

10.5.1 Description Resource Estimation Parameters

10.5.1.1 Geometry of the Block Model The block model used for this estimate is a partial model that not only contains the usual data required for resource quantification (rock code, density, grade), but in which each block is assigned a percentage of mineralized material. This method allows a more precise representation of the irregular, thin mineralization seen at various points in the orebody.

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10.5.1.2 Resource Estimation Parameters The parameters used to estimate the resource are shown in Table 10.3. During the process, the rock code for each block is read and the database is scanned to find composites with specific rock code present within the defined search ellipses.

10.5.1.3 Estimate Parameters Three resource categories were estimated using the inverse distance cube technique and a generally spherical search with a range varying as follows, depending on the category of resource being estimated: Measured resource: minimum of three holes in a 20-metre range that corresponds to the average distance between the holes in the most mineralized areas of this category. The resulting blocks are coded 100 in the Category.blk file; Indicated resource: minimum of two holes within a 40-metre range. The resulting blocks are coded 200; Inferred resource (within the solids): A single hole within a 200-metre range. While this inferred resource has virtually no continuity, it represents potential targets that require complementary drilling to be better defined and contribute to the resource. The resulting blocks are coded 300; Inferred resource (outside the solids): 50 m x 50 m x 5 m if there are at least two composites; 25 m x 25 m x 5 m if only one composite has been found. The resulting blocks are coded 400. Table 10.3 shows the parameters used.

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Table 10.3
Camp Caiman, Interpolation spherical ID3, April 2005 Interpolation - 31 May 2005 (Restricted search of inferred outside solid) Domain Profile D1MEA-6 D2MEA-6 D1IND-6 D2IND-6 D1INF-6 D2INF-6 D1LINF1-6 D2LINF1-6 D2LINF2-6 D2LINF2-6
Rock Code Row Column Bench

Rotation1 Z o 0 o 0 o 0 o 0 o 0 o 0 o 110 o -35 o 110 o -35 Y o 0 o 0 o 0 o 0 o 0 o 0 o 30 o 40 o 30 o 40 Z o 0 o 0 o 0 o 0 o 0 o 0 o 0 o 0 o 0 o 0 X 20 20 40 40 200 200 25 25 50 50

Search elipse (m) Y 20 20 40 40 200 200 25 25 50 50 Z 20 20 40 40 200 200 2,5 2,5 5 5

1700, 2700, 3700 1700, 2700, 3700 1700, 2700, 3700 1700, 2700, 3700 1700, 2700, 3700 1700, 2700, 3700 1100, 2100, 3100 1100, 2100, 3100 1100, 2100, 3100 1100, 2100, 3100

1-500 1-500 1-500 1-500 1-500 1-500 1-500 1-500 1-500 1-500

1-304 305-530 1-304 305-530 1-304 305-530 1-304 305-530 1-304 305-530

1-110 1-110 1-110 1-110 1-110 1-110 1-110 1-110 1-110 1-110

Max Comps /hole 2 2 2 2 2 2 2 2 2 2 2

Comps/block 3 Min 5 5 3 3 1 1 1 1 2 2 Max 6 6 6 6 6 6 6 6 6 6 Grade max 4 20 30 20 30 20 30 20 30 20 30 *mex compinx5 compinx5 compinx5 compinx5 compinx5 compinx5 compinx5 compinx5 compinx5 compinx5 1700 16972 14912 48962 46217 9022 5569 2700 381 881 4363 5002 1934 2332

Nbre de blocks estimated 3700 326 4275 11868 48080 16416 16211 1100 2100 3100 Code Categ. 100 100 200 200 300 300 400 400 400 400

33741 19210 167989 177990

5862 3975 16067 36535

27153 15490 29366 115687

Observations: Anti-clockwise around axes 2 Max. number of 5 m composite per hole used for block interpolation 3 Number of 5m composite used per block estimation 4 High grade capping value applied on 5m composite during interpolation
1

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10.5.2 Specific Gravity Series of density measurements were performed by Asarco in 1997, 1998 and 2000 and by Cambior in 2005. The 2005 measurements are coming from exploration areas away from the main deposit and are not included. Table 10.4 shows the average density of the main geological units.

Table 10.4 Summary of Densities by Lithology Material Type SAPROLITE Lithology All ( except Dolerite) Dolerite TRANSITION Saprock Grade > 1 g Au/t ROCK Grade < 1 g Au/t Dolerite Average Density 1.62 1.40 2.11 2.91 2.79 3.06 No. of samples 113 9 27 34 23 2

10.5.3 Mineral Resource The mineral resources are defined as a natural concentration of one or several economic minerals whose shape, size and grade have been defined by sampling and geological modeling. Even though no economic viability has yet been demonstrated, the use of parameters such as grade cutoffs must reflect actual market conditions as well as the cutoffs used in the mining sections. The mineral resources in this report represent all the measured and indicated ore blocks found within an entire block model with grades above the defined cutoff grades. Table 10.5 shows the in-situ resources above cutoff grades of 0.66 g Au/t for the saprolite zones, 0.88 g Au/t for transition zones and 1.40 g Au/t for the hard rock zones. Cut-off grade were fixed at 80% of the grade used for the mine planning. The measured and indicated resources total 20,442 million tonnes at an average grade of 2.46 g Au/t for over 1.62 million ounces of gold contained (Table 10.5 and Table 10.6). Fifty seven percent of the total tonnage is in weathered saprolitic material.

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Following first pit modelisation, the resources were subdivided into three sub-groups: Scout Pit, CC-88 Pit and peripheral zones located at more than 200 meters from the main pits (Table 10.7).

The Scout Pit contains fifty-four percent of the saprolite resource and the CC-88 Pit contains eightyeight percent of the resource in transition and rock.

The resource estimate was validated by looking at different sections and benches and comparing the block gold grades with the information contained in the composites used to create the blocks. The validation was deemed satisfactory.

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Table 10.5 In-situ Camp Caiman Resources Classified by Material Type SAPROLITE
(0.66 g/t cutoff)

Volume (000 m ) 2,550 4 808 7 358 392 328 720 Volume 98 406 504 76 46 122 Volume
3

Density (t/m ) 1.62 1.62 1.62 1.62 1.62 1.62 Density 2,11 2.11 2.11 2.11 2.11 2.11 Density
3

Tonnage k tonnes 4 131 7 790 11 921 635 531 1 166 Tonnage 207 857 1 064 161 97 258 Tonnage

Au g/t 2.41 1.66 1.92 1.03 1.12 1.07 Au 3.26 2.00 2.25 1.28 1.43 1.33 Au

Au k oz 321 416 737 21 19 40 Au 22 55 77 7 4 11 Au

Measured Indicated Total M & I Inferred within Inferred outside Total Inferred TRANSITION
(0.88 g/t cutoff)

Measured Indicated Total M & I Inferred within Inferred outside Total Inferred ROCHE
(1.40 g/t cutoff)

Measured Indicated Total M & I Inferred within Inferred outside Total Inferred ALL MATERIALS Measured Indicated Total M & I Inferred within Inferred outside Total Inferred

355 2 208 2 563 723 85 2 563 Volume 3 003 7 422 10 425 1 192 459 1 651

2.91 2.91 2.91 2.91 2.79 2.90 Density 1.79 2.03 1.96 2.43 1.89 2.28

1 033 6 424 7 457 2 105 238 2 343 Tonnage 5 371 15 071 20 442 2 901 866 3 767

3.77 3.28 3.35 2.67 2.29 2.63 Au 2.71 2.37 2.46 2 23 1.48 2.06

125 677 802 181 17 198 Au 467 1 148 1 615 208 41 249

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Table 10.6 Camp Caiman In-situ Resources Classified by Zone SCOUT Measured Indicated Total M & I Inferred within Inferred outside Total Inferred CC-88 Measured Indicated Total M & I Inferred within Inferred outside Total Inferred CC-08 Measured Indicated Total M & I Inferred within Inferred outside Total Inferred ALL ZONES Measured Indicated Total M & I Inferred within Inferred outside Total Inferred 3 003 7 422 10 425 1 092 459 1 651 5 370 15 071 20 442 2 901 866 3 767 2.71 2.37 2.46 2.23 1.48 2.06 467 1 148 1 615 208 41 249 3 180 183 164 139 303 6 330 336 308 247 555 1.04 1.42 1.42 1.21 1.27 1.24 0 15 15 12 10 22 1 632 4 325 5 957 660 118 778 3 129 9 654 12 783 1 738 238 1 976 3.24 2.79 2.90 2.37 1.46 2.26 326 865 1 191 133 11 144 VOLUME (000s) m* * 3 1 367 2 918 4 285 368 202 570 Tonnage 2 235 5 087 7 322 855 381 1 236 Au g/t 1.97 1.64 1.74 2.31 1.62 2.09 Au Koz 141 268 409 63 20 83

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Table 10.7 Camp Caiman in situ measured and indicated resources per area Saprolite
Area Tonnes (000) Grade (g Au/t)

Transition
Tonnes (000) Grade (g Au/t)

Rock
Tonnes (000) Grade (g Au/t)

Total
Tonnes (000) Grade (g Au/t)

Ounces
In situ (000)

Scout CC-88 Peripheral TOTAL

6 280 5 421 219 11 921

1.66 2.26 1.04 1.92

390 619 55 1 064

1.57 2.72 1.71 2.25

652 6 743 62 7 457

2,.61 3.42 2.51 3.35

7 322 12 783 336 20 442

1.74 2.90 1.42 2.46

409 1 191 15 1 615

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11.0 MINING

11.1 General The mining activities are realized by means of exploitation method with opened sky conventional by using tipcarts and mechanic shovels. The primary objective of the mining operation is to provide the mill with sufficient ore to operate to design capacity, which has been set at 5,500 tonnes per day or 2,007,500 tonnes per year, subject to the mining and milling capacities for the various ores. During preproduction, roads, tailings dams, mass excavation for the plant site and various other earth work projects must be undertaken with the mining equipment fleet. For this reason, the mining equipment is gradually phased in to complete these infrastructures prior to commercial production. To accelerate ore exposure and minimize land usage, most borrow materials will be taken directly from the two pits whenever possible. During the first year of pre-production, mining is planned in the CC-88 pit for fill material and principally to expose rock to be used for aggregate production and rip-rap for erosion protection and production of concrete for construction.

11.2 Geotechnical The general stratigraphy of the site consists of basement rocks which are lavas and volcaniclastic units of the Paramaca Formation. These are overlain by basal wackes and upper flysches of the Armina The Formation, which contains most of the mineralization, commonly in association with fold axes. highest units stratigraphically are the sandstones and conglomerates of the Orapu Formation. Saprolitic alteration is developed over the entire surface of the property. Saprolitic alteration of the original bedrock extends across the entire pit areas to depths varying from as little as 25 meters (m) at the north of the CC-88 pit, to more than 100 m in the Scout pit. Rising terrain at the north slope of the Scout pit will result in slope heights of up to 140 m in saprolite. Between the saprolite and the bedrock is a transition zone that is characterized by less intense weathering and oxidation and is designated as saprock.

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The typical thickness of the saprock will be 5 m to 10 m in the Armina and Paramaca Formations. The greatest thicknesses of saprock develop within the Orapu conglomerates and sandstones. For purposes of this study, Golder Associates has performed a slope stability analyses based on the results and experience derived from a similar saprolite environment at the Wenot pit at Omai, and densities and shear strengths derived from material characterization studies in the Camp Caiman pit areas and tailings dam site. These analyses indicate that even modest amounts of water in the saprolite can have a significant effect on the stability of the slope. Based on these conclusions, Golder has recommended angles of 32 to 40, depending on slope height. These values are conservative, and will be updated and revised as appropriate based on the results of the initial exposure of the CC-88 pit walls. A ground control program will be established as soon as excavation work begins, to adequately monitor slope stability and optimize mining recovery. These slope design recommendations assume that the saprolite is largely de-pressurized as soon as the walls are exposed, and that it remains effectively de-pressurized throughout the operating life of the pits. Any groundwater pressures will decrease the stability of the saprolite and would require a reduction in the final slope angles. The cost of an effective pit wall dewatering and stability control program is included in the operating cost estimate presented below. The saprock zone as defined in the geological model is generally significantly higher strength. However, this geological formation is generally only 5 to 10 m thick, and therefore does not warrant a change in slope design. An important exception to this generalization is the Orapu saprock that will be exposed in the southeast sector of the CC-88 Pit. Inspection of a split core from saprock in corehole CC-117-97 indicates that there is little if any saprolite within this thick (100 m) intersection of saprock. Steeper slope angles could be justified in this zone. The up-to-70 m thickness of this saprock that will be exposed in the pit wall warrants additional investigation to support a steeper slope design in this area. For currently preliminary design purposes, Golder has recommended assuming an inter-ramp slope angle of 45 through saprock that is thicker than 10 m at the pit limit. However, the saprock has been treated as saprolite for slope design purposes, regardless of thickness. The south wall of pit CC-88 presents an opportunity to reduce the final pit perimeter depending on the experience gained during excavation.

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The fresh bedrock that will form the lower slopes of the CC-88 pit is characterized by medium to high strength rock with a low fracture intensity. In view of the modest pit slope heights proposed in bedrock, and subject to the geomechanical characteristics measured during geotechnical work, Golder has recommended a 55 angle in competent bedrock where the risk of structural control is currently estimated to be low. The suitability of this design should be verified by demonstrating the absence of unfavourablyoriented structures. With the exception of the northwest slope of the CC-88 pit, no significant potential structural control of bedrock slope stability has been identified. Although current indications are that structure is not strongly developed along the trend of the dolerite dikes, structure at this orientation would not be expected to be a significant control on slope stability because of its near-vertical dip. The risk of structural control is estimated to be greatest in the north slope of the CC-88 pit, where foliation/bedding dips out of the slope at reportedly steep angles. Recommendations of a 50 design inter-ramp slope angle for this footwall have been made based on the understanding that structure dipping into the pit is expected to be relatively steep. Additional investigation is necessary to better characterize the actual structural orientations in the vicinity of the pit slope as a basis for final slope design. The economic parameters used in the optimization process are listed in Table 11.1. Optimization parameters are a function of rock types, which have different mining and processing costs. The input costs for optimization reflect the operating cost budgets established for the project.

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Table 11.1 Lerchs-Grossman Optimization Parameters Description Gold price (US $/oz) Selling costs (US $/oz) Process recovery Mining Costs (US $/tonne mined) Total Ore-Based Costs (US $/tonne ore) - Milling - Power generation - General services & admin - Ore feeder operations Cut-off Grade (Au g/t) Saprolite 425 2.50 0.93 1.51 10.33 5.28 1.22 3.60 0.23 0.82 Transition 425 2.50 0.80 1.97 11.94 6.16 1.78 3.60 0.40 1.10 Hard Rock 425 2.50 0.58 2.35 13.78 7.04 2.34 4.00 0.40 1.75

Depending on mill capacity, both with regard to cyanidation and grinding, the mine plan allows for the milling of additional saprolite tonnage. Tonnage considered low-grade can be economically sent to the mill. Given that fixed operating costs are already amortized or paid, the cut-off grade for this marginalgrade tonnage is much lower. The applicable supplementary costs applicable to this tonnage are therefore the additional power requirement, as well as the cost of additional reagents for processing. Additional milling and power costs for 500 extra tonnes are US $3.20/tonne, plus handling costs of US $0.23/tonne at the feeder, for a total of US $3.43/tonne. Based on these costs, the cutoff grade is therefore 0.27 g Au/t. However, the lowest grade fed to the mill is 0.65 g Au/t in the first four years, and 0.55 g Au/t in Year 5. The low-grade tonnage is shown separately in the reserve tables.

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11.3 Bulk Density of Mined Materials Three rock types are encountered in the mining process: saprolite, transition rock (also referred to as saprock) and hard rock. Bulk density determinations have been undertaken on the various rock types and at various depths within the deposits. The bulk density of the saprolite increases with depth from 1.5 t/m3 at surface to 1.9 t/m3 at a distance some 120 m below surface. For the purposes of mine productivity calculations, the average dry density of the saprolite was taken to be 1.62 t/m3. Moisture contents in the saprolite can be as high as 36%, with an average of 16.0%. Moisture contents in the transition and hard rocks are much less. Swell factors were applied to evaluate loose bulk density values. Swell is greater for the transition and hard rocks than for the saprolite due to the blocky nature of these materials once fragmented by blasting. Table 11.2 below summarizes the bulk densities of the various materials encountered in the pits. Table 11.2 Material Properties by Rock Type Material Properties Dry in-situ bulk density (t/m ) Moisture content (%) Swell factor Dry loose bulk density (t/m ) Wet in-situ bulk density (t/m ) Wet loose bulk density (t/m )
3 3 3 3

Saprolite 1.62 16.0% 0.90 1.46 1.88 1.69

Transition 2.11 8% 0.75 1.58 2.28 1.71

Hard Rock 2.90 0.7% 0.70 2.03 2.92 2.04

11.4 Conception of pits and equipment

11.4.1 Loading and Hauling Operations Mining is accomplished by conventional open pit methods, using trucks and shovels. 40 tons articulated dumpers are foreseen to move up to 10 million tons a year The choice of articulated dumpers instead of larger, rigid trucks is warranted by the 3,984 mm of average precipitation per year. Three-axle traction and the lesser weight on the tires allow the dumpers to travel in wet conditions and exert less damage on the permanent haulage roads. These narrower trucks also allow for narrower roads and ramps, which reduces the impact on the waste/ore ratio.

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Dumpers will be loaded with by 3 production shovels from 100 to 120 tones with gores of 6 m2. The mining tracks will be maintained by a grader with blade and will be watered as needed by a watertank to dustdown dusts.

11.4.2 Mining Roads and ramp design A haul road network is planned between the pits, mill area, waste dumps and tailings storage facility. The main pit ramps are 15 m wide. The height of safety berms are established at the tire height, which is 1.0 m for the tires used on 40-t haulers. The main ramps in the pit are designed at 10%. Near the bottom of the pits, the ramps are reduced to 10 m wide and steepened to 12% to maximize ore recovery. Production haul roads will be 18 m wide, with 12 m of travelling surface to allow for two-lane traffic.

11.4.3 Waste Dumps The objective of dump planning is to minimize the horizontal and vertical distances between the source and the disposal area, since materials handling costs are the single largest component of the mining cost. Layered dump construction is proposed for Camp Caiman. The advantage of terraced dumps is that they reduce the amount of dozer work required to reduce the dump face during reclamation to allow for the placement of topsoil and re-vegetation. Ramp access on the dumps will be 15 m wide with a 5% grade. Particular emphasis will be placed on dump runoff management. Two waste dumps are planned, one for each pit. The East Dump to the east of the mill area will receive waste from the CC-88 pit, while the West Dump to the west of the mill area will receive waste from the Scout pit. The East Dump has a surface area of 55.2 hectares and is constructed to elevation 70 for a height of 60 m. The East Dump as designed has a capacity of 16.6 million m3. The West Dump will accommodate waste from the Scout pit. 12.7 million m3. This dump has a surface area of

42 hectares and is constructed to elevation 70 for a height of 60 m. The West Dump has a capacity of

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The Scout pit could serve as a storage site for waste from the CC-88 pit beginning at the end of Year 5, in other words, for the last two years of operation of the CC-88 pit. The waste would be piled in the eastern section of the pit, near the CC-88 pit.

11.4.4 Maintenance equipment Support equipment includes two 400-hp track dozers and two 200-hp wide-track dozer for a total of four dozers. These dozers are used for dump maintenance, clean-up around the shovels, tailings dam construction, road construction and tree clearing. A compactor is required for road construction and tailings dam construction.

11.5 Infrastructure and Support Facilities

11.5.1. Heavy Equipment Shop The heavy equipment shop is designed for mechanical maintenance of light and heavy equipment (trucks, bulldozers, shovels and other heavy equipment). It is equipped with a 20-tonne overhead crane, and all the bays are equipped with hoisting apparatus. The building is open on both sides to provide access to the equipment. The floor is sloped to allow drainage to a ditch that directs the water and lubricant along the side of the shop toward the oil/water separator so as to avoid accidental oil spills. Lubricant and compressed air distributors and electrical and water outlets are also planned. A concrete slab will be poured adjacent to the truck shop for tire repair work.

11.5.2. Warehouse The lower, 49.4 m long section will house the warehouse while the upper part will house the shop, which consists of eight work bays.

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11.5.3. Fuel Storage Fuel storage consists of two depots, separated so as to contain fire damage. A small depot is planned for gasoline and a large depot for diesel fuel. The gasoline depot consists of a compact unit that contains a holding tank, a reservoir and a distribution pump. The reservoir capacity is only 10,000 litres, and will be used principally for ATVS. The diesel depot has a concrete containment and roofing and a loading/unloading platform that slopes toward an oil/water separator. Storage consists of three reservoirs totalling nearly 40,000 litres, a storage tank for used oil from the maintenance shop, pumps and an oil/water tank.

11.5.4. Wash Bay A concrete slab is located near the shop to allow equipment to be washed prior to maintenance.

11.6 Mining Reserves The mining reserves are summarized in Table by pit and rock type. As there is no history of mining and processing for these ores and for this property, the measured resources are categorized as probable reserves, as are the indicated resources. There is therefore only one category of reserves at this stage in the project. Total probable reserves for the two pits are therefore 12.3 million tonnes at 2.82 g Au/t, or 1,113,875 ounces of gold in situ. Total probable hard rock and transition reserves combined are 4.0 million tonnes at 3.97 g Au/t, or 33% of the total tonnage.

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Table 11.3

Camp Caiman Reserves by Pit and Rock type Probable Reserves


Pit 88 Scout Total kt Saprolite HG g Au/t oz Au kt Saprolite LG g Au/t oz Au kt Transition g Au/t oz Au kt Hard Rock g Au/t oz Au kt Total g Au/t oz Au

3 639 3 787 7 426

2,88 2,02 2,44

336 917 246 147 583 064

438 418 856

0,73 0,75 0,74

10 269 10 087 20 356

382 39 421

3,47 2,56 3,39

42 653 3 184 45 838

3 574 9 3 582

4,04 2,48 4,03

463 909 707 464 616

8 033 4 252 12 285

3,31 1,90 2,82

853 749 260 126 1 113 875

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11.7 Production Schedule The mining plan is developed with the following intentions: To feed the mill at a constant rate of 5,500 tpd or 2,007,500 tonnes; To feed the mill with the highest possible grade at the beginning of the operation so as to improve the return on the project and shorten the payback period; To take advantage of the pre-production period to mine waste from the upper benches of the Scout and CC-88 pits for road and dam construction, while stockpiling any ore material encountered during the pre-production period; To keep ore stockpiles to less than 300,000 tonnes. The sequencing of the pits by year and rock type is presented in Table 11.3, Table 11.4 and Table 11.5 The mill feed and stockpile status associated with this mining schedule are presented in Table 11.6 and Table 11.15 respectively. About 1.69 Mt including 66 kt of ore will be mined from the CC-88 pit during the pre-production period, and 0.6 Mt including 7 kt of ore from Scout pit. Saprolite waste from the Scout pit is required to build the initial tailings deposition cell and its collection pond, whereas waste from the CC-88 pit is used for road construction and pre-stripping to expose waste rock for aggregate production and riprap for dam protection. In the first five years, the two pits will be mined simultaneously at an annual mining rate of about 10 million tonnes. In years 6 and 7, all activities will focus on mining of hard rock from the CC-88 pit at a reduced mining rate, determined by the mill capacity and equipment productivity at depth. The mining sequence is shown in Table 10.4 to Table 11.5, from preproduction to the last year of mining. Ore stockpile management is described in Table 10.5, based on preproduction work and the commissioning of the tertiary crusher in Year 3 of operation. The stockpiles will also serve as buffers to balance out mining and milling capacities.

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Table 11.4
Tonnage Mined from Pits
Minerai Year PP1 PP2 1 2 3 4 5 6 7 8 9 10 Total 7 426 2,44 583 064 856 0,74 20 356 421 3,39 45 838 3 582 4,03 464 616 12 285 2,82 1 113 875 31 692 2 298 12 311 46 302 58 587 kt Saprolite HG g Au/t oz Au 39 28 1 759 1 941 1 308 1 724 626 1 0 0 2,25 2,02 2,64 3,05 2,11 1,88 2,26 1,66 0,78 0,00 2 845 1 834 149 205 190 274 88 864 104 444 45 553 46 0 0 kt Saprolite LG g Au/t 0 0 183 183 183 183 126 0 0 0 0,00 0,00 0,75 0,75 0,75 0,74 0,69 0,00 0,00 0,00 oz Au 0 0 4 387 4 374 4 412 4 369 2 815 0 0 0 kt 3 3 1 81 109 33 182 10 0 0 Transition g Au/t oz Au 1,51 1,50 2,17 4,49 4,09 3,11 2,65 2,13 1,67 0,00 129 128 51 11 701 14 330 3 304 15 500 694 0 0 kt 0 0 0 95 132 224 1 089 1 254 788 0 Rock g Au/t 1,92 1,92 0,00 4,17 4,88 4,64 3,54 3,67 4,97 0,00 oz Au 24 24 0 12 708 20 667 33 511 123 833 147 891 125 959 0 kt 42 31 1 942 2 299 1 732 2 164 2 022 1 265 788 0 Total g Au/t 2,20 1,97 2,46 2,96 2,30 2,09 2,89 3,65 4,97 0,00 Sap. oz Au 2 997 1 986 153 643 219 057 128 272 145 628 187 700 148 632 125 959 0 kt 861 822 7 923 6 806 7 579 6 406 1 292 1 0 0 Tran. kt 88 54 31 135 412 882 688 8 0 0 Waste
Rock

All Tot. kt 219 202 37 527 279 548 4 815 3 710 1 975 0 1 168 1 078 7 991 7 468 8 270 7 837 6 794 3 719 1 975 0 Tot. kt 1 211 1 109 9 934 9 767 10 002 10 000 8 817 4 984 2 763 0 kt

Table 11.5
Tonnage Mined from the CC-88 Pit
Ore Year PP1 PP2 1 2 3 4 5 6 7 8 9 10 Total 3 639 2,88 336 917 438 0,73 10 269 382 3,47 42 653 3 574 4,04 463 909 kt Saprolite HG g Au/t oz Au 39 21 1 019 1 377 381 424 377 1 0 0 2,25 2,25 2,97 3,54 2,15 1,75 2,36 1,66 0,78 0,00 2 845 1 488 97 249 156 537 26 299 23 824 28 628 46 0 0 kt Saprolite LG g Au/t 0 0 123 77 73 59 106 0 0 0 0,00 0,00 0,74 0,74 0,74 0,74 0,69 0,00 0,00 0,00 oz Au 0 0 2 941 1 826 1 744 1 409 2 350 0 0 0 kt 3 3 1 81 109 22 154 10 0 0 Transition g Au/t oz Au 1,51 1,50 2,17 4,49 4,09 3,76 2,61 2,13 1,67 0,00 129 128 51 11 701 14 330 2 679 12 941 694 0 0 kt 0 0 0 95 132 224 1 081 1 254 788 0 Rock g Au/t 1,92 1,92 0,00 4,17 4,88 4,65 3,55 3,67 4,97 0,00 oz Au 24 24 0 12 708 20 667 33 458 123 178 147 891 125 959 0 kt 42 24 1 143 1 630 694 729 1 717 1 265 788 0 0 0 8 033 Total g Au/t 2,20 2,16 2,73 3,49 2,82 2,62 3,03 3,65 4,97 0,00 0,00 0,00 3,31 Sap. oz Au 2 997 1 640 100 240 182 772 63 040 61 371 167 097 148 632 125 959 0 0 0 853 749 13 880 2 220 12 246 28 346 36 379 kt 861 196 3 018 3 180 3 187 2 357 1 079 1 0 0 Tran. kt 88 54 31 135 412 847 645 8 0 0 Waste
Rock

All Tot. kt 219 202 37 527 279 508 4 790 3 710 1 975 0 1 168 452 3 086 3 841 3 878 3 712 6 514 3 719 1 975 0 Tot. kt 1 211 476 4 229 5 472 4 573 4 441 8 231 4 984 2 763 0 kt

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Table 11.6
Tonnage Mined from the Scout Pit
Ore Year PP1 PP2 1 2 3 4 5 6 7 8 9 10 Total 3 787 2,02 246 147 418 0,75 10 087 39 2,56 3 184 9 2,48 707 kt Saprolite HG g Au/t oz Au 0 8 740 563 927 1 299 249 0 0 0 0,00 1,41 2,18 1,86 2,10 1,93 2,12 0,00 0,00 0,00 0 345 51 956 33 736 62 565 80 620 16 924 0 0 0 kt Saprolite LG g Au/t 0 0 59 105 110 123 20 0 0 0 0,00 0,00 0,76 0,75 0,76 0,75 0,72 0,00 0,00 0,00 oz Au 0 0 1 447 2 549 2 667 2 959 465 0 0 0 kt 0 0 0 0 0 11 28 0 0 0 Transition g Au/t oz Au 0,00 0,00 0,00 0,00 0,00 1,79 2,86 0,00 0,00 0,00 0 0 0 0 0 625 2 559 0 0 0 kt 0 0 0 0 0 1 8 0 0 0 Rock g Au/t 0,00 0,00 0,00 0,00 0,00 2,67 2,46 0,00 0,00 0,00 oz Au 0 0 0 0 0 53 655 0 0 0 kt 0 8 800 669 1 037 1 434 305 0 0 0 0 0 4 252 Total g Au/t 0,00 1,41 2,08 1,69 1,96 1,83 2,10 0,00 0,00 0,00 0,00 0,00 1,90 Sap. oz Au 0 345 53 403 36 285 65 232 84 257 20 603 0 0 0 0 0 260 126 17 812 78 65 17 955 kt 0 626 4 905 3 627 4 392 4 049 213 0 0 0 Tran. kt 0 0 0 0 0 36 43 0 0 0 Waste
Rock

All Tot. kt 0 0 0 0 0 40 25 0 0 0 0 626 4 905 3 627 4 392 4 125 280 0 0 0 Tot. kt 0 633,549 5 705 4 296 5 429 5 559 585 0 0 0 0 0 22 207 kt

Table 11.7
Mine to Mill
Year PP1 PP2 1 2 3 4 5 6 7 8 9 10 Total 7 426 2,44 583 064 856 0,74 20 356 421 3,39 45 838 3 582 4,03 464 616 12 285 2,82 1 113 875 1 825 1 825 1 426 1 575 625 149 0 2,62 3,00 2,25 1,87 2,27 2,03 0,78 153 770 176 163 103 088 94 742 45 537 9 763 0 183 183 183 183 126 0 0 0,75 0,75 0,75 0,74 0,69 0,00 0,00 4 387 4 374 4 412 4 369 2 815 0 0 0 0 196 26 178 10 11 0,00 0,00 4,18 3,49 2,66 2,13 1,90 0 0 26 339 2 882 15 270 694 652 0 0 203 224 1 021 1 200 934 0,00 0,00 4,62 4,65 3,52 3,66 4,79 0 0 30 213 33 475 115 740 141 245 143 944 2 008 2 007 2 008 2 008 1 951 1 360 944 2,45 2,80 2,54 2,10 2,86 3,47 4,76 158 157 180 538 164 052 135 468 179 362 151 703 144 595 kt Saprolite HG g Au/t oz Au kt Saprolite LG g Au/t oz Au kt Transition g Au/t oz Au kt Rock g Au/t oz Au kt Total g Au/t oz Au

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Table 11.8
Stockpile Status
Saprolite HG Year PP1 PP2 1 2 3 4 5 6 7 8 9 10 Add. 39 28 0 116 0 148 0 0 0 0 0 0 Sous. 0 0 66 0 117 0 0 149 0 0 0 0 Bal. 39 68 2 117 0 148 149 0 0 0 0 0 Add. 0 0 0 0 0 0 0 0 0 0 0 0 Saprolite LG Sous. 0 0 0 0 0 0 0 0 0 0 0 0 Bal. 0 0 0 0 0 0 0 0 0 0 0 0 Add. 3 3 1 81 0 7 3 0 0 0 0 0 Transition Sous. 0 0 0 0 87 0 0 0 11 0 0 0 Bal. 3 5 6 87 0 7 11 11 0 0 0 0 Add. 0 0 0 95 0 0 68 54 0 0 0 0 Rock Sous. 0 0 0 0 72 0 0 0 146 0 0 0 Bal. 0 1 1 96 24 24 92 146 0 0 0 0 Add. 42 31 1 292 0 156 71 54 0 0 0 0 Total Sous. 0 0 66 0 276 0 0 149 157 0 0 0 Bal. 42 74 8 300 24 180 251 157 0 0 0 0

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11.8 Capital Costs The capital cost for the mine is broken down into major and minor equipment. Major equipment includes all pieces of equipment required to assure production, whereas minor equipment includes all equipment required to support the mine. Table 11.9 summarizes the mine capital cost requirements. Sustaining capital required during operations is limited to the replacement of pick-ups and ATVs and the addition of pumps for the dewatering system. No replacement or addition of major mining equipment is required during operations, as all equipment is planned to be purchased new. The mine will be responsible for the mass excavation and terracing during the preproduction period. Haulage roads will also be built during preproduction, and the pits will be stripped in preparation for commercial production.

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Table 11.9 Mine Capital Expenditures ($ US)


PP0 Heavy equipment Support equipment Total equipment Preproduction work Total 0 0 0 249 249 PP1 11,336 1,887 13,223 4,494 17,717 PP2 3,860 956 4,816 6,491 11,307 1 420 0 420 680 1,100 2 0 56 56 597 653 3 0 536 536 0 536 4 0 240 240 263 503 5 0 139 139 201 340 6 0 0 0 0 0 7 0 0 0 0 0 TOTAL 15,616 3,815 19,430 12,974 32,404 PreProd. 15,196 2,844 18,039 11,234 29,273 420 971 1,391 1,740 3,131 Sustaining

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11.9 Manpower Four departments are required to operate the mine: operations, maintenance, engineering and geology. Each department head will report directly to the general manager. Table 11.9, Table 11.10, Table 11.11, and Table 11.12 provide a summary and details by department. The average quantity of manpower required for the first five years is 231, with a reduction in expatriates from 7.7% to 5% in Year 5. A total of 14 expatriate staff employees would be based in Cayenne, and the mine and maintenance coordinators on shift rotations would be on a fly-in fly-out basis to their place of residence. Headed by the mine superintendent, four shift supervisors and a trainer will supervise the drilling, blasting, loading and hauling mining activities. On average, 28 equipment operators and labourers are required to cover the five crews. The maintenance department will be composed of mechanics, welders and electricians, who will perform preventive maintenance work and unscheduled repair work as necessary. Crews will work on the same schedule as the operations department. The maintenance department will perform maintenance work on both heavy mine equipment and light duty equipment such as pick-ups, ATVs and pumps. Lube technicians will service crawler-type equipment in the field with a dedicated fuel and lube truck. The maintenance department will also have two service trucks at their disposal for performing field repairs. The mine operations are supported by a geology department and an engineering department. The

geology department functions include sampling of production drill holes, grade control, ore block calculations and geological interpretation. The engineering department is responsible for mine planning, pit design, production scheduling, surveying, quality control of tailings dam construction and other activities that support the operation.

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Table 11.10

Manpower Requirements by Departments Services


EXPATRIATED STAFF Operations Maintenance Geology & Engineering SUB-TOTAL LOCAL PERSONNEL Operations Maintenance Geology & Engineering SUB-TOTAL TOTAL HOURLY Operations Maintenance Geology & Engineering TOTAL GRAND-TOTAL

2005 P0
0,3 0,3 0,3 0,9 0,0 0,0 0,0 0,0 0,9 0,0 0,0 0,0 0,0 0,9

2006 P1
3,0 2,5 1,8 7,3 0,5 0,8 0,5 1,8 9,0 19,5 9,3 0,5 29,3 38,3

2007 P2
4,0 3,0 2,5 9,5 3,0 1,0 2,0 6,0 15,5 24,0 15,0 1,5 40,5 56,0

2008 1
6 7 4 17 6 6 8 20 37 132 49 3 184 221

2009 2
6 7 4 17 6 6 8 20 37 139 51 3 193 230

2010 3
6 7 4 17 8 6 8 22 39 140 51 3 194 233

2011 4
2 7 4 13 11 6 8 25 38 140 51 3 194 232

2012 5
2 7 3 12 11 6 8 25 37 145 52 3 200 237

2013 6
1 3 1 5 10 5 8 23 28 89 31 1 121 149

2014 7
1 2 1 3 6 3 5 14 17 53 20 1 74 91

2015 8
0 0 0 0 0 0 0 0 0 0 0 0 0 0

2016 9
0 0 0 0 0 0 0 0 0 0 0 0 0 0

2017 10
0 0 0 0 0 0 0 0 0 0 0 0 0 0

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Table 11.11
Operation Manpower Requirements Services
EXPATRIATED PERSONNEL Mine Superintendent Training Coordinator Pit Coordinator SUB-TOTAL LOCAL PERSONNEL Pit Coordinator Dispatchers Clerks SUB-TOTAL TOTAL HOURLY Drill Operator Drilling Helper Shovel Operator Loader Operator Truck Driver Grader Operator Ram Operator Equipment Support Operator TOTAL GRAND-TOTAL

2005 P0
0,3 0,0 0,0 0,3 0,0 0,0 0,0 0,0 0,3 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,3

2006 P1
1,0 1,0 1,0 3,0 0,0 0,0 0,5 0,5 3,5 2,0 2,0 2,3 0,0 7,5 0,8 3,0 2,0 19,5 23,0

2007 P2
1,0 1,0 2,0 4,0 0,0 2,0 1,0 3,0 7,0 2,0 2,0 3,0 0,0 10,0 1,0 4,0 2,0 24,0 31,0

2008 1
1 1 4 6 0 5 1 6 12 15 2 16 5 65 5 20 4 132 144

2009 2
1 1 4 6 0 5 1 6 12 15 2 16 5 70 5 20 6 139 151

2010 3
1 1 4 6 2 5 1 8 14 15 2 16 6 70 5 20 6 140 154

2011 4
1 1 0 2 5 5 1 11 13 15 2 16 6 70 5 20 6 140 153

2012 5
1 1 0 2 5 5 1 11 13 15 3 16 10 70 5 20 6 145 158

2013 6
1 0 0 1 5 5 0 10 11 15 3 6 5 45 5 5 5 89 100

2014 7
1 0 0 1 3 3 0 6 7 9 3 4 4 24 3 3 3 53 60

2015 8
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2016 9
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2017 10
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

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Table 11.12
Maintenance Manpower Requirements Services
EXPATRIATED STAFF Maintenance Superintendent Planning Coordinator Maintenance Coordinator SUB-TOTAL LOCAL STAFF Heavy Equipment Supervisor Light Equipment Supervisor SUB-TOTAL GRAND-TOTAL HOURLY Machinist Lubrification Technician Tire Technician Caretaker Electrician Welder Mechanics SUB-TOTAL GRAND-TOTAL 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,3 0,8 0,8 0,8 0,0 2,0 0,0 5,0 9,3 12,5 1,0 1,0 1,0 2,0 2,0 2,0 6,0 15,0 19,0 2 5 5 2 6 8 21 49 62 2 5 5 2 6 8 23 51 64 2 5 5 2 6 8 23 51 64 2 5 5 2 6 8 23 51 64 2 5 5 2 6 9 23 52 65 0 5 0 2 4 5 15 31 39 0 3 0 1 3 3 10 20 25 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0,0 0,0 0,0 0,3 0,8 0,0 0,8 3,3 1,0 0,0 1,0 4,0 5 1 6 13 5 1 6 13 5 1 6 13 5 1 6 13 5 1 6 13 5 0 5 8 3 0 3 5 0 0 0 0 0 0 0 0 0 0 0 0 0,3 0,0 0,0 0,3 1,0 0,8 0,8 2,5 1,0 1,0 1,0 3,0 1 2 4 7 1 2 4 7 1 2 4 7 1 2 4 7 1 2 4 7 1 0 2 3 1 0 1 2 0 0 0 0 0 0 0 0 0 0 0 0

2005 P0

2006 P1

2007 P2

2008 1

2009 2

2010 3

2011 4

2012 5

2013 6

2014 7

2015 8

2016 9

2017 10

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11.10

Operating Costs

Table 11.12 and Table 11.13 show operating costs by activity and per tonne, respectively, for each year of the mine life. Beginning in Year 4, haulage costs begin to rise due to deepening of the pits, and from Year 5 on, the proportion of hard rock begins to push up explosives consumption. Operating costs will average US $1.76/tonne during the production period. Table 11.14 show unit costs by rock type and mining activities for each year of the mine life.

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Table 11.13
MINE OPERATING BUDGET BY ACTIVITY ACTIVITY

2008 1

2009 2
816,682 458,380 468,879 622,168 1,032,072 408,794 1,962,500 4,822,495 551,004 1,769,188 184,351 279,509 75,000 883,051 1,023,126 93,865 15,451,064

2010 3
912,023 473,449 468,879 605,769 1,009,714 410,702 1,991,777 4,835,658 550,248 1,765,952 228,039 256,572 883,051 1,024,791 95,721 15,512,345

2011 4
772,764 488,449 468,879 643,709 1,112,066 700,919 2,025,014 4,913,908 550,083 1,765,952 251,999 250,468 883,051 1,042,211 95,721 15,965,193

2012 5
772,764 404,124 468,879 525,553 1,720,930 3,042,403 1,980,210 4,856,172 550,083 1,765,952 271,368 256,035 883,051 1,083,592 47,860 18,628,976

2013 6
506,796 212,091 382,978 271,588 1,339,286 2,343,605 835,219 3,344,057 548,890 503,253 226,198 240,104 504,202 606,297 47,860 11,912,423

2014 7
291,894 128,099 249,754 150,390 765,697 1,338,464 560,180 1,927,947 351,655 307,219 278,493 142,262 302,521 356,553 28,716 7,179,845

2015 8
-

TOTAL

MINE ADMINISTRATION ENGINEERING GEOLOGY ASSAY LAB. DRILLING BLASTING LOADING HAULING ROAD MAINTENANCE DUMP MAINTENANCE PIT DEWATERING DISPATCH DEFORESTATION ADMINISTRATION - MAINTENANCE GENERAL MAINTENANCE MAINTENANCE MINOR EQUIP. TOTAL (USD)

816,682 457,630 468,879 605,444 927,916 84,286 1,877,562 4,455,172 552,016 1,765,952 61,310 329,505 63,750 883,051 986,268 94,793 14,430,216

4,889,606 2,622,223 2,977,128

7,907,681 8,329,174 11,232,463 29,155,410 3,653,978 9,643,467 1,501,757 1,754,452 138,750 5,221,979 6,122,838 504,535 99,080,063

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Table 11.14
MINE OPERATING BUDGET PER TONNE ACTIVITY

2008 1

2009 2

2010 3

2011 4

2012 5

2013 6

2014 7

2015 8

TOTAL 9
0.09 0.05 0.05 0.06 0.14 0.15 0.20 0.52 0.06 0.17 0.03 0.03 0.00 0.09 0.11 0.01 1.76

MINE ADMINISTRATION ENGINEERING GEOLOGY ASSAY LAB. DRILLING BLASTING LOADING HAULING ROAD MAINTENANCE DUMP MAINTENANCE PIT DEWATERING DISPATCH DEFORESTATION ADMINISTRATION - MAINTENANCE GENERAL MAINTENANCE MAINTENANCE MINOR EQUIP. TOTAL (USD)

0.08 0.05 0.05 0.06 0.09 0.01 0.19 0.45 0.06 0.18 0.01 0.03 0.01 0.09 0.10 0.01 1.45

0.08 0.05 0.05 0.06 0.11 0.04 0.20 0.49 0.06 0.18 0.02 0.03 0.01 0.09 0.10 0.01 1.58

0.09 0.05 0.05 0.06 0.10 0.04 0.20 0.48 0.06 0.18 0.02 0.03 0.09 0.10 0.01 1.55

0.08 0.05 0.05 0.06 0.11 0.07 0.20 0.49 0.06 0.18 0.03 0.03 0.09 0.10 0.01 1.60

0.09 0.05 0.05 0.06 0.20 0.35 0.22 0.55 0.06 0.20 0.03 0.03 0.10 0.12 0.01 2.11

0.10 0.04 0.08 0.05 0.27 0.47 0.17 0.67 0.11 0.10 0.05 0.05 0.10 0.12 0.01 2.39

0.11 0.05 0.09 0.05 0.28 0.48 0.20 0.70 0.13 0.11 0.10 0.05 0.11 0.13 0.01 2.60

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Table 11.15 UNIT COSTS BY ROCK TYPE ACTIVITIES


LOADING HAULING 2008 1 0.19 0.45 0.09 0.06 0.00 0.06 0.18 0.42 1.44 0.19 0.40 0.19 0.07 1.16 0.06 0.18 0.42 2.65 0.19 0.40 0.30 0.05 1.29 0.06 0.18 0.42 2.89 2009 2 0.20 0.50 0.09 0.06 0.00 0.06 0.18 0.44 1.53 0.20 0.45 0.18 0.07 0.39 0.06 0.18 0.44 1.96 0.20 0.43 0.29 0.05 0.52 0.06 0.18 0.44 2.17 2010 3 0.20 0.49 0.09 0.06 0.00 0.06 0.18 0.43 1.50 0.20 0.44 0.18 0.07 0.38 0.06 0.18 0.43 1.93 0.20 0.45 0.29 0.05 0.52 0.06 0.18 0.43 2.17 2011 4 0.20 0.50 0.09 0.07 0.00 0.06 0.18 0.43 1.51 0.20 0.44 0.17 0.07 0.35 0.06 0.18 0.43 1.89 0.20 0.45 0.28 0.05 0.49 0.06 0.18 0.43 2.13 2012 5 0.22 0.62 0.08 0.07 0.00 0.06 0.20 0.47 1.73 0.22 0.53 0.15 0.07 0.33 0.06 0.20 0.47 2.04 0.22 0.53 0.24 0.05 0.47 0.06 0.20 0.47 2.25 2013 6 0.17 0.76 0.09 0.07 0.00 0.11 0.10 0.55 1.86 0.17 0.64 0.17 0.07 0.34 0.11 0.10 0.55 2.14 0.17 0.67 0.27 0.05 0.47 0.11 0.10 0.55 2.39 0.20 0.70 0.28 0.05 0.48 0.13 0.11 0.64 2.60 2014 7 0.20 0.49 0.09 0.06 0.00 0.06 0.18 0.43 1.51 0.21 0.47 0.17 0.07 0.36 0.06 0.18 0.45 1.97 0.20 0.59 0.26 0.05 0.48 0.09 0.15 0.52 2.35 Total

SAPROLITE TRANSITION ROCK

DRILLING ASSAYING BLASTING ROAD MAINTENANCE DUMP MAINTENANCE SERVICES & SUPPORT TOTAL LOADING HAULING DRILLING ASSAYING BLASTING ROAD MAINTENANCE DUMP MAINTENANCE SERVICES & SUPPORT TOTAL LOADING HAULING DRILLING ASSAYING BLASTING ROAD MAINTENANCE DUMP MAINTENANCE SERVICES & SUPPORT TOTAL

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12.0 PROCESSING

12.1 Design Criteria The design criteria for the processing facilities have been developed specifically for the Camp Caiman plant using a number of sources, including: The mine production plan. The results of the metallurgical test work conducted by several laboratories between 1997 and 2004. Recent tests performed at Rosebel for comparative purposes. Experience gained by Cambior at the Rosebel and OMGL operations when treating similar ores, particularly the soft saprolite. Accepted design values used in a number of other gold plants.

The main design constraints are the daily mill capacity, the gold content of the ore and the planned mill availability. Consequently, the planned feed for the first 24 months is essentially the saprolite mined. In the third year, hard rock and transition ore from the CC-88 zone will begin to be added to the saprolite feed from the CC-88 and Scout zones to maintain a feed rate of 5,500 tpd. Saprolite reserves will be depleted as of the sixth year of operation, after which the feed will consist of hard rock ore only at a rate of 4,000 tpd until the mine is depleted at the end of Year 7. Table 12.1 contains a list of specific design criteria, while Table 12.2 shows the production schedule summary. Table 12.1 Mill availability Soft rock Transition rock Hard rock Mill 93% 80% 58% 92%

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Table 12.2 Production


Description Soft rock Transition rock Hard rock Total ore Unit tonnes tonnes tonnes tonnes Year 1 2,007,500 0 0 2,007,500 Year 2 2,007,500 0 0 2,007,500 Year 3 1,608,035 196,085 203,380 2,007,500 Year 4 1,757,761 25,699 224,040 2,007,500 Year 5 751,463 178,435 1,021,251 1,951,149 Year 6 149,472 10,145 1,200,000 1,359,617 Year 7 0 10,670 933,756 944,756

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12.2 Process Flowsheet The process flowsheet is relatively simple, and is largely based on experience gained at the Omai (OGML) and Rosebel plants. During the first two years, 5,500 tonnes per day (2,007,500 tonnes per year) of saprolite will be processed at the mill. In subsequent years, a crushing circuit will be required for the hard rock and transition ores, primary and pebble crushers to handle the addition of transition and hard rock ores to the circuit. This phase will see the mill process variable proportions of hard rock and saprolite. Some of the equipment and structures that become available when the Omai operation closes will be used whenever possible to minimize capital costs. A process schematic flowsheet is shown in Figure 12.1. A detailed description of the process flowsheet and the planned equipment is provided later in this document. The main elements of the process flowsheet are listed below: The altered ore (saprolite) is trucked from the mine, stockpiled and then reclaimed by a backhoe to feed the main grinding feed conveyor. An apron feeder is used to control the ore feed rate. Feeding by front end loader is continuous, 24 hours per day; The transition and hard rock ores, mined after 24 months, require crushing. The crushing circuit is installed in parallel with the saprolite feed circuit; A ball mill was selected for primary grinding. It has been sized adequately to process the transition and hard rock ores beginning in year 3. Prior to the installation of the tertiary crusher, to be commissioned in year 3, the material will be washed and stockpiled. The grinding mill will overflow to a discharge screen, with the discharge screen oversize will be rejected to a bin for recycling to the crushing circuit, if the grade warrants, by a front end loader; The grinding mill discharge screen product is fed to the ball mill cyclones. The ball mill is in closed circuit with cyclones to produce a final grind size of 80% minus 160 m for the saprolite and 47 m for the hard rock, with the optimum in this range, depending on the saprolite/hard rock ratio. The cyclone underflow is fed to the leach circuit feed thickener; As at Omai and Rosebel, lime and cyanide will be introduced into the grinding circuit, where 30-40% of the gold will be dissolved prior to the leach circuit to maximize the gold in the carbon-in-pulp (CIP) adsorption circuit feed solution;

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Ore from Pits

Camp Caman Project Schematic flowsheet


21mm Pile From Mine Dewatering

22mm + Pile Hard Rock

Water Cyanide Lime

Cyclones

Secondary Cone Crusher

Jaw Crusher Lime Ball Mill Water Hard Rock Tertiary Cone Crusher Hopper Saprolite Ball Mill Discharge Screen Cyanide

To Environment

Sedimentation Pond

Fresh and Fire Water Supply O/S Pile

Ball Mill Discharge Pump Box

Linear Trash Screen

Fines to Leaching Circuit Lime and Flocculant Trmie de charbon enrichi Carbon Strip Vessels Barren Strip Solution Tank Heat Exchanger

Loaded Strip Solution Tank

Thickener Process Water Tank

Loaded Carbon Screen

Drivation

Rservoir de lavage l'acide Fresh Carbon

Electrowinning Cells (2x) Calcination Oven Horizontal Carbon Sizing Screen Carbon Drain Screen

Heater 3 Leach Tanks 6 CIP Tanks

Flux Linear Screen

Re-Circulated Water

Recovery Thickener

Induction Furnace

To Tailings Pond

Thickened Paste Plant

Smoothing Tank

Arsenic Cleaning

Cyanide Destruction Buffer Tank

Concentrate Table Carbon Fines Kiln Gold Bar

Cyanide Destruction Circuit

Figure 12.1
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No gravity concentration circuit is planned initially. Testwork will be done on the processed ore to determine whether such a circuit should be installed later. Space will be provided for in the design to allow for a future installation;

To avoid the high viscosity generally encountered with this type of ore, the grinding circuit product is thickened to a maximum practical slurry density of 42% solids prior to cyanide leaching and CIP adsorption. Two linear screens are used to remove trash that would cause blinding of the CIP circuit interstage screens;

Thickener overflow solution is recycled as process water to the grinding circuit. Make-up water is obtained from the cyanide recovery thickener overflow and from mine.

Loaded carbon is recovered daily from the CIP circuit and processed to recover the gold adsorped on the carbon in a Zadra circuit similar to those at Omai and Rosebel. The carbon is acid washed prior to gold stripping. Two stripping vessels are used to reduce the lost time in carbon handling and to minimize the size of the solution heating system. Stripped carbon is thermally regenerated before being returned to the CIP circuit;

The gold is recovered and refined in a secure gold room that houses the electrowinning, concentrate drying and smelting processes;

The large quantity of lime required for pH control in the grinding and leaching circuits is prepared on site in a lime slaker. The lime is prepared during day shift and sufficient storage is included for ongoing operation.

Mixing and storage facilities are also provided for ferric sulphate, lead nitrate, flocculant, sodium hydroxide, cyanide, copper sulphate and sodium metabisulfite;

Discharge from mine dewatering pumps supplies fresh water for domestic use, fire fighting, reagent mixing, quench water and pump gland sealing, as well as make-up water for the process water tanks.

12.3 Plant Design and Location The facilities required for the operation will be built at a nominal elevation of 35 metres. The area selected is at the top of a hill, which will be levelled to permit construction. A valley-shaped depression nearby will

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serve as an emergency collecting pond once dikes are built. This pond will collect the drainage water from the plant site and some of the mine dewatering water, and will provide process make-up water.

12.4 Primary Crushing A 4,000 tpd crushing circuit will be required to process the transition and hard rock ore to reduce the size of the ore prior to grinding. Run-of-mine ore will be hauled from the mine by truck and dumped on a stockpile near the primary crusher. A wheel loader loads the jaw crusher feed hopper. The hopper has a 1.5 truckload capacity and is equipped with a rockbreaker used to break the blocks of ore that cannot be crushed because of their size or shape. A vibrating finger feeder is used to recover the ore in the hopper and classifies the ore ahead of the 30 X 40 jaw crusher equipped with a 200 HP motor. This portion of the circuit reduces the size of the material from 950 mm X 1,250 mm to less than 125 mm. Secondary and tertiary crushers are required in closed circuit to reduce the ore to less than 6 mm. A conveyor transports the ore from the jaw crusher to the secondary cone crusher. A metal detector will be installed ahead of the first cone crusher to protect the equipment. The produce is screened to produce material with a k80 of 6 mm. The oversize material is sent to a tertiary cone crusher, with the product from this crusher then sent to the screens. The final product is stockpiled and later fed to the hard rock/transition hopper by a wheel loader. Figure 12.2 shows the complete circuit in more detail. The tertiary crusher and crushed ore feeder will be installed only during the second year of operation. The original crushing facility will be used to produce material for dam construction, aggregate for concrete and stone for road maintenance.

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12.5 Saprolite Feed System During the first two years, the saprolite portion of the deposit will be processed at a rate of 5,500 tonnes per day. The ore is hauled from the mine by truck and deposited near the saprolite feed system. A wheel loader feeds the ore to a 45 tonne capacity hopper equipped with a 2,200 mm by 4,200 mm grizzly with 300 mm x 400 mm openings. A 1,828 mm wide by 6,096 mm long variable-speed apron feeder reclaims the ore from the feed hopper and transfers it onto the grinding mill feed conveyor. A rotating finger type lump breaker will be installed at the discharge end of the apron feeder to prevent the flattened ore agglomerations that tend to form due to the plasticity of the saprolite ore. The grinding mill feed conveyor is inclined at less than 5 from horizontal and is designed with 45 troughing idlers to contain the fluidity characteristics of the ore. A spray cleaning system is installed under the conveyor beyond the discharge point and the resulting slurry is directed to the grinding mill feed chute. A scale on the conveyor measures the total tonnage fed to the grinding mill and depending on the quantity of hard rock/transition ore, the saprolite tonnage is controlled by the speed of the apron feeder.

12.6 Grinding The grinding circuit consists of a single ball mill and a lump breaker. The saprolite ore feeds the grinding mill at a nominal rate of 249 tonnes per hour. The 5,030 mm diameter x 9,300 mm long ball mill is driven by a 5,200 HP motor. The ball mill discharge chute directs the pulp to a 1,225 mm x 3,050 mm vibrating scalping screen equipped with 10 mm x 40 mm slotted screen panels. A complete spare unit is provided for quick replacement. The screen oversize material (reject) is discharged via a chute to a bin to be washed and returned to the primary crusher. The vibrating screen undersize is transferred by gravity to the ball mill discharge/cyclone feed pump box. The cyclone feed pump box is equipped with two 355 mm x 305 mm, 300 HP variable-speed pumps. The pumps (one operating. one standby) feed a cyclone cluster that consists of nineteen 250 mm cyclones. Each cyclone is equipped with an isolating valve to allow removal of any given cyclone for maintenance or replacement. The cyclone underflow returns to the ball mill while the overflow (25-35% solids) is

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transferred by gravity to the pre-leach thickener via two linear trash screens. Cyclone overflow is sampled (primary and secondary samplers). The auxiliary equipment for the grinding mill includes the lubrication, mill gear spray, inching drive, mill liner handler and jacking cradle systems. The grinding mill will also be installed with infra-red gear temperature monitoring devices.

12.7 Gravity Circuit A gravity circuit is not initially required to process the Camp Caiman ores. Metallurgical test work indicates that gold recovery using the gravity method would be low. Testwork also indicates that overall gold recoveries using a gravity/cyanidation combination versus cyanidation alone are very similar. However, the space required for the gravity separation equipment (rotary concentrator and intense cyanidation) is provided for. Since representative samples of strongly altered ore are difficult to obtain for gold gravity separation tests, testwork will be done once the plant is in full production to determine whether or not to install a gravity separation circuit.

12.8 Thickener The pre-leach thickener area includes horizontal trash screens, the thickener, the process water tank and pumps, the gland water tank and pumps and the thickener underflow/leach feed slurry pumps. Trash Screen In order to prevent trash and oversize rock from entering the leach/CIP circuit, two linear 9 m2 (1,800 mm x 4,900 mm) screens will be installed ahead of the thickener. Under normal circumstances one screen is operating and the other is on standby, but both units can be used in parallel when required. The screens are equipped with underflow and overflow launders and a spray system to facilitate slurry screening and provide continuous screen cleaning. Thickener Sedimentation testwork was performed; however, the thickening area requirement for the saprolite is based heavily on experience acquired at the Omai and Rosebel operations. A 28 metre high-capacity type thickener with feed slurry auto dilution will be installed. A thickener of this size is sufficient to meet the greatest sedimentation area requirement (639 m2 for saprolite at 5,500 tonnes per day). Diluted flocculant will be added to the thickener feed. The thickener underflow will be 42% solids in the case of the saprolite ore (5,500 tpd) and slightly higher at approximately 45% solids for a blend of hard rock and

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saprolite ores. A higher percent solids can be achieved but the nature of saprolite-type ores is such that coefficients of viscosity are excessive at 45% solids or more. Process Water Tanks and Pumps A 7,500 mm diameter by 7,500 mm high process water tank and associated pumping system is required for the plant operation. The process water is used principally for make-up water for the grinding mill and for pump box make-up water for the grinding area. The process water pumps (one running, one standby) are rubber lined slurry pumps due to the potential for a high percentage of solids in the water from time to time when there are process upsets. Gland Water Pumps The main line from the make-up water pond feeds a separate 3,000 mm diameter by 5,000 mm high gland water tank. The two 100 mm x 75 mm gland water pumps (one running, one standby) provide a pressure of approximately 450 kPa, sufficient for the requirements of the various mill pumps, including the final mill tailings pumps. Thickener Underflow Pumps Two 150 HP, 250 mm by 200 mm thickener underflow pumps (one running, one standby) feed a distributor above leach tank #1. Each pump has a dedicated suction line from the thickener center cone.

12.9 Leach/CIP Circuit Total gold recovery is expected to be 93% for the saprolite ore, 80% for the transition ore and 58% for the hard rock ore. Overall recovery from the design tonnage of 5,500 tonnes per day is projected to be 77.8 % Test work shows that the total leach/CIP residence time for optimum recovery is 48 hours. Taking into consideration that 30-40% of gold dissolution takes place in the grinding circuit, a total leach/CIP residence time of 30 hours will be provided with the installation of three 3,200 m3 leach tanks and six 630 m3 CIP tanks. The leach tanks are 16 metres in diameter and 17 metres high (16 metres usable) and have agitators equipped with dual impeller sets and a 125 HP drive. The slurry is pumped to a distributor that can feed

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either tank no. 1 or tank no. 2. Compressed air is injected into the lower section of each tank and dispersed using a Chinese hat type sparging arrangement. The slurry flows to subsequent tanks by gravity; the slurry height in each tank is lower that in the preceding tank, providing a hydraulic gradient that promotes the flow from one tank to the next. The leach and CIP tanks are designed so that any of them can be bypassed and taken out of service without shutting down the plant. The slurry flows into and through all six 9 metres diameter by (on average) 11 metres high CIP tanks in the same fashion. Activated carbon (regenerated or new) is added in CIP tank no. 6. Vertical pumps installed in each of the CIP tanks transfer the carbon counter current to the flow through the CIP tanks. The carbon/slurry mix removed from CIP tank no. 1 is screened and washed on a 900 mm x 2.440 mm horizontal vibrating screen with 1 mm openings. The loaded carbon recovery screen is located on a platform above CIP tank no.1. The washed carbon (screen oversize) passes through a washing column for degritting and is collected in the loaded carbon bin, where it is stored before being transferred to the acid wash and strip circuit. The screen undersize (slurry) is returned by gravity to CIP tank no. 1. The loaded carbon bin has a capacity of six tonnes of carbon. It is used as a surge storage vessel until the carbon is pumped in four-tonne batches to the acid wash tank at the beginning of each stripping cycle.

12.10

Carbon Stripping/Carbon Reactivation/Gold Refining

The loaded carbon recovered from the CIP circuit is washed and stripped of gold in several stages. Carbon in slurry form is pumped by a progressive cavity pump to the four-tonne (8-m3) capacity acid wash tank. The tank is constructed of fibreglass-reinforced plastic (FRP); the carbon screens, sprayers, piping, valves and connections are all PVC (polyvinyl chloride). The carbon transport water drains out of the tank and is directed to the carbon transport water tank, while the carbon is retained on the PVC screen. The acid wash tank is 1,525 mm in diameter and 6,150 mm high, including a less-than 60 conical section. A 3% nitric acid solution is prepared in the 3,000 mm diameter by 3,000-mm high diluted acid tank, and then pumped to the acid wash tank. The tank contains one bed volume (8 m3) of acid solution that is dispersed over the surface of the carbon by sprayers and allowed to clean the lime and other impurities absorbed on the surface of the carbon. The acid solution is fed to the bottom of the tank and exits to the acid tank through an opening equipped with a PVC screen.

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Once it has been treated with acid and the acid has drained, the carbon is sprayed with fresh water that then drains to the sump. The tank carbon drain is opened and the carbon is pumped to one of the strip vessels. The stripping system consists of barren and pregnant solution tanks and pumps, two strip vessels, two heat exchangers (one heat recovery and one quench) and a solution heating system. The carbon transport water used to pump the acid-washed carbon into the strip vessel is drained from the strip vessel to the sump and directed to the carbon transport water tank. Each of the strip vessels is 1,550 mm in diameter and 4,600 mm high, with a capacity of 4 tonnes (8 m3) of carbon. The vessels are constructed of stainless steel. The pressure safety system consists of a rupture disk followed by a release valve. The barren solution tank is 5,000 mm in diameter by 4,800 mm high. The total strip solution volume for one cycle is 96 m3 (including 8 m3 of rinse). Based on the experiences of Omai and Rosebel, only sodium hydroxide will be used initially in the strip solution. A cyanide feed line will, however, be installed in case cyanide is required for optimum stripping results. The barren solution is kept at ambient temperature in the tank and heated before being pumped into the strip vessel. Stripping takes place at a temperature of 125 C and a controlled pressure of about 370 kPa; pressure is controlled by an automatic pressure regulating valve located on the strip solution line between the quench heat exchanger and the pregnant solution tank. Solution is pumped at a low rate in a closed loop between the tank, the first heat exchanger, the solution heater and the strip vessel. Once the temperature of the solution and the carbon load are near operating temperature (125 C), the solution begins to circulate in the stripping column at a rate of 1.5 bed volumes per hour (12 m3/h) and the circuit loop is completed. The exiting strip solution passes through the first heat exchanger to transfer part of its thermal load to the barren solution, and then continues to the second heat exchanger, where quench water lowers its temperature to about 80 C. allowing the solution pressure to be released. The strip solution is directed to the pregnant solution tank, and then pumped to electrowinning cells in the refinery. The pregnant solution tank has the same dimensions as the barren solution tank. At the end of the strip cycle, about 8 m3 of rinse water is pumped using the strip solution pump to displace the remaining solution in the carbon column and to lower the temperature of the column and the carbon, which allows the release of the column pressure. After stripping, the carbon slurry passes through a circular, 1,200 mm diameter decanting screen with 1 mm openings. The carbon on the screen falls into the regeneration kiln hopper and the solution passing through the screen is directed to the carbon transfer water collection tank for recovery of the carbon fines. The carbon is metered into the 1,220 mm diameters by 9,200 mm long electric regeneration kilns by means of a screw feeder. The carbon is reactivated in a steam-saturated atmosphere that evaporates the
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organic material adsorbed on the carbon and regenerates the carbon without burning it. The carbon exiting the kiln falls into a quench tank that also serves as a surge storage tank. The regenerated carbon is then returned to the CIP circuit after screening to remove carbon fines. Fresh carbon is attrited in a carbon-conditioning tank, then screened with the reactivated carbon. Solution from the pregnant solution tank is pumped to one of two 3.5 m3 capacity electrowinning cells, where the gold is recovered on stainless steel mesh cathodes. Solution from the cell discharge is pumped to the barren solution tank. Electrowon gold is washed from the cathodes in a spray booth using a highpressure water jet. The water and suspended solids are drained from the booth and pumped through a Perrin-type filter press. Sludge from the electrowinning cells is also pumped to the same filter press. The sludge in the booth and the filter press cake are gathered and dried in an electric drying oven. Fluxes are then added to the dried concentrates and the mixture is charged to an electric induction furnace. After smelting and oxidation of impurities, the induction furnace yields two products: bullion containing the precious metals and a light slag containing the impurities. The bullion will be stored in a vault and then shipped to a refinery for final refining.

12.11

Reagent Storage Building

A three walled structural steel reagent storage building will be constructed to store the in-country inventory of lime, cyanide (bag/box), carbon, flocculant, sodium hydroxide, nitric acid, copper sulfate and sodium metabisulfite, as well as mill rubberized components and capital spares. The existing reagent storage building at Omai (OMGL) will be transferred to Camp Caiman for this purpose. Cyanide ISO containers will be stored outdoors in a secured area.

12.12

Reagent Preparation

The reagent preparation area includes mixing, mixed reagent storage and feed systems for lime, cyanide, sodium hydroxide, flocculant, copper sulfate and sodium metabisulfite. These systems are adjacent to one another and cover an area of 18 m by 59 m. The reagent preparation area is connected to the grinding and leach/CIP/tails area by means of overhead pipe racks and service trenches.

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Lime Slaking and Distribution Quick lime is delivered to the site in 1-tonne bags and is slaked (hydrated in Ca(OH)2 form) before being distributed to the mill. The bags are emptied into an 80-m3 tonne capacity hopper and the lime is fed into an auger type (Dorr-Olliver) lime slaker with a 5-tonne mixing capacity. The 2,440 mm diameter by 2,200 mm high mixing tank has a 3 HP agitator. The quick lime is fed by screw feeder into the mixing tank, where an appropriate quantity of water is added to produce a 20% solid lime milk. The insoluble particles present in the mix are extracted from the mixing system by a rake system in the mixing tank, and dumped into a waste bin. The mixing tank overflows into a pump box that transfers the solution to the storage tank. This tank is 4,750 mm in diameter by 5,000 mm high, for a usable volume of 85 m3, sufficient for 24 hours of operation. The tank is also equipped with an agitator that keeps the lime particles in suspension. The lime distribution pumps are separated into three distribution loops: one for the ball mill, one for the cyanidation thickener feed, and one for the leach and CIP tank area. Each distribution loop is equipped with two horizontal slurry pumps (one operating. one standby). In each loop, the slaked lime is dosed to the points of use by automatic valves. The unused flow in each distribution loop returns to the distribution tank. Cyanide The sodium cyanide preparation system will come from Omai. The system consists of an arrangement that allows the use of the ISO container system, with a dissolution tank connected to the ISO container in closed circuit. Water is pumped from the dissolution tank into the ISO container, and the solution returns to the dissolution tank in a closed loop until the cyanide briquettes are completely dissolved in the ISO container to produce a 22% NaCN solution. Once the cyanide is completely dissolved, the circulation of the solution from the dissolution tank is stopped, and the ISO container is emptied into the dissolution tank. This system allows 20 tonnes of cyanide to be put into solution, sufficient for 15 days of operation. The cyanide solution is then pumped to a 4,700 mm diameter by 4,880 mm high storage/distribution tank. The solution is distributed by means of one of two operating feed pumps and a piping loop that feed the grinding circuit, the pre-leach thickener and the carbon strip circuit. A backup cyanide mixing system is also available to mix cyanide from 1 tonne super sacs. This system allows four tonnes of cyanide to be mixed per cycle. The sacs of cyanide briquettes are emptied into the 2,800 mm by 3,000 mm backup system dissolution tank and mixed with water to produce a 22% cyanide solution. Once dissolution is complete, the solution is pumped to the cyanide solution storage/distribution tank.

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Flocculant The flocculant is a polymer. It is received on site in powder form and must be hydrated, dissolved in water then diluted with water before being added to the thickener feed slurries. The mixing/preparation system required is based on a daily consumption of about 325 kg of solid polymer. Flocculant preparation is done in four stages, namely feed and hydration, mixing, storage and final dilution when the polymer solution is added to the thickener feed. The flocculant is received in super sacs that are raised and placed on the hopper. The feed/hydration system includes a hopper, a screw feeder, a fluidizer and a wetting system that ensures hydration of each polymer particle. The feed/hydration system discharges into a mixing tank equipped with a low shear agitator. The mixing tank is 2,800 mm in diameter and 3,050 mm high, for a usable volume of 15 cubic metres. The polymer solution is transferred from the mixing tank to the storage tank by a progressive cavity pump. The storage tank is 3,750 mm in diameter by 3,800 mm high, for a usable volume of 33 m3. The polymer solution is dosed to the thickeners by progressive cavity pumps (two operating, one standby). A static 75 mm mixer is provided for each thickener to dilute the polymer solution and produce a better mix with the thickener feed slurry. Sodium Hydroxide (Caustic) Sodium hydroxide is received on site in solid form and dissolved in water to produce a 25% solution. This caustic solution is used as a desorption solution in the activated carbon strip circuit, and as a neutralizing solution for the loaded carbon after it is acid washed. Small quantities are also used to dissolve the cyanide briquettes to maintain a high alkalinity and prevent the formation of cyanide gas (cyanhydrique acid). The system simply consists of a hopper, a 2,850 mm diameter by 3,050 mm high mixing tank with an agitator and a distribution pump. Copper Sulfate Copper sulfate is used in the cyanide detoxification circuit. It is delivered to the site in 1-tonne bags that are fed to the mixing tank hopper and added to water to produce a 10% solution. The mixing tank is 2,700 mm in diameter by 2,700 mm high, and is equipped with a 5 HP agitator. The mix is pumped to an unagitated storage tank 3,700 mm in diameter by 3,700 mm high. The copper sulfate solution is distributed by one of two 1 HP dosing pumps (one operating, one standby) to the cyanide detoxification reactor.

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Sodium Metabisulfite Sodium metabisulfite is also used exclusively in the cyanide detoxification circuit. It is delivered to the site in solid form in 1-tonne bags. Two tonnes of sodium metabisulfite are emptied into the mixing tank hopper and added to water to produce a 10% solution. The mixing tank is 3,100 mm in diameter by 3,100 mm high, and is equipped with a 15 HP agitator. A 7.5 HP pump transfers the mix to an unagitated storage tank 4,700 mm in diameter by 4,700 mm high. The sodium metabisulfite solution is distributed by one of two dosing pumps (one operating, one standby) to the cyanide detoxification reactor. Ferric Sulfate Ferric sulfate is used exclusively to precipitate the arsenic. It is delivered in one-tonne bags. Each bag is emptied into the mixing tank hopper and added to water to produce a 5% solution. The mixing tank is 3,100 mm in diameter by 3,100 mm high and is equipped with a 15 HP agitator. A 7.5-HP pump transfers the mix to an unagitated storage tank 4,700 mm diameter by 4,700 mm high. The ferric sulfate solution is distributed by one of two dosing pumps (one operating, one standby) to the arsenic precipitation reactor.

12.13

Support Infrastructure

Process Compressors The oxygen required to dissolve the gold is provided by the addition of compressed air to the slurry at the leach/CIP circuit. The compressed air is injected into the dispersion system located under the leach tank agitators. Service Compressors Service air is required as a continuous source of instrumentation air and for other services such as airactivated maintenance equipment, lubrication pumps and air seals. The system consists of two 100 HP rotary screw air-cooled compressors, including intake air filters, after-coolers, moisture separators, automatic drainage of the accumulated moisture and an automated control system. Three compressors, available from OMGL, two operating and one standby, provide the necessary air. Each compressor is capable of producing 340 Nm3/h (200 cfm) of compressed air at 790 kPa pressure. Receiver tanks for service air will be installed at the compressor station, at the cyanide ISO mix station, between the mill maintenance building and the power plant, and at the primary crusher. One main air

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receiver will be installed for instrumentation air along with receivers in each of the grinding mill clutch air systems. The receivers are installed to minimize pressure fluctuations and compensate for demand surges. A two-stage desiccant dryer is installed ahead of the instrument air tank. Make-up Water Make-up water will come from cyanide recovery thickener, from the tailings setting pond and from the mine dewatering setting pond. Two vertical 60 HP pumps (one operating, one standby) installed in a pump station provide this make-up water through a single line. Gland Water The fresh water distribution pumps feed a 3,000 mm diameter by 5,000 mm high tank that holds gland water for the mill pumps.

12.14

Offices and Process Automation System

The mill office complex and control room will be constructed within the grinding circuit structure at the grinding floor elevation. The metallurgical laboratory will be located in the same area. The mill office complex and control room will be prefabricated all-metal modular units. The metallurgical laboratory will be of the same make up and located adjacent to the mill offices. The plant control system is based on a single controller platform using Industrial Ethernet as the main communication network for I/O control as well as for supervisory functions. The entire control system is designed in a manner so that remote access from any location within the plant or even from outside the country will be possible, allowing operation, remote troubleshooting, process data collection, and even production analysis. The operator station software is selected to operate using a client/server configuration. The client/server architecture desired carries significant advantages over traditional stand-alone PCs, including centralized and easier development and maintenance of the applications. In such a configuration, the engineering station, plant remote operator panels, portable wireless laptop terminals, palm user interfaces and even remote office desktop computers are all clients of the control application server. Any of these clients,

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given the proper access rights, will equally be capable of accessing the server to obtain production data. Standard Operation Procedures (SOP), laboratory test results, etc. The engineering station hosts the configuration software for operator stations, plant operator panels, process and I/O controllers, and networks configuration. The station also supports remote access from any location, allowing remote performance of configuration tasks. Process controllers and communication networks, like the server and stations, are selected to be redundant-capable. Remote controllers required for the tailings, reclaim and fresh water pumping are linked to the main control network through fibre optic cables. All the process control, software and communication network products selected are widely used, proven, industrial-grade technologies and open software platforms. Motor control centers and switchgears are designed to come pre-wired with remote I/O modules and in specific cases, intelligent O/L relays and power monitoring equipment, all of which provide network communication capabilities. Along the communication architecture retained, supervisory functions and critical control operations are communicated over separate networks. Whenever possible, process instruments are intelligent instruments and are wired to the analog process controller inputs/outputs by means of traditional, individual 4-20 mA signal cables. are also connected with a communication link to the supervisory network. Exceptionally, instruments that are multi-variables, such as belt scales, or that have advanced diagnostics capabilities,

12.15

Mill Workshop

The mill maintenance workshop will be located within the mill grinding area.

12.16

Manpower Requirement

Commercial production will begin, processing saprolite at a rate of 5,500 tonnes per day, 27 months after project approval. This type of process is new to French Guiana, necessitating the use of a number of expatriates for the first few years of operation. Additionally, local wage rates are relatively high. As a result, an intensive modular training program will begin in advance of mill production, it will be supported by local training agency and CBJ-CAIMAN.
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Overlapping of responsibilities in key areas will also be required to minimize manpower numbers. Equipment and systems will be sized adequately, where possible, to allow for one shift per day operation. Reagent mixing is an examples of this. Automation and remote monitoring and control will be used where ever possible to insure the maximum use of the worforce. A total of 73 employees are assigned to the mill department, of which 34 are directly involved with the operation. The maintenance group consists of 17 persons and the electrical department requires another 18 to service the entire property and another four are needed for management and the metallurgical group. A detailed list of personnel is shown in Table 12.3.

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Table 12.3 Manpower Planning - Mill Service


EXPATRIATE PERSONNEL DIRECTOR CHIEF MTALURGIST GNRAL FOREMAN FOREMAN DIRECTOR / TRAINER REFINER HEAD MAINTENANCE SUPERVISOR INDUSTRIAL MECHANIC SUPERVISOR HEAD ELECTRICAL SUPERVISOR PROCESS CONTROL ANALYST LECTRICIAN INSTRUMENTATION TECHNICIAN SUB-TOTAL LOCAL PERSONNEL METALLURGICAL TECHNICIAN PROCESS CONTROL - CRUSHING - GRINDING - LIXIVIATION / DPURATION - THICKENING - RAGENT - UTILITY - REPLACEMENT PLANNING TECHNICIAN INDUSTRIAL MECHANIC REFINER LECTRICIAN - PLANNER - ENGINEER LECTRICIAN INSTRUMENTATION TECHNICIAN SUB-TOTAL TOTAL

2005 P0

2006 P1
0.3

2007 P2
1.0

2008 1
1.0 0.5 0.3 0.3 0.3 0.1 0.3 0.1 0.1 3.1 0.5 1.0 0.3 0.3 0.1 0.1 0.3 0.4 1.0 0.4

2009 2
1.0 1.0 1.0 4.0 4.0 1.0 1.0 6.0 1.0 1.0 2.0 2.0 25 2.0 2.0 5.0 5.0 2.0 2.0 5.0 3.0 1.0 9.0 1.0 8.0 3.0 48 73

2010 3
1.0 1.0 1.0 4.0 4.0 1.0 1.0 4.0 1.0 1.0 2.0 1.0 22 2.0 2.0 5.0 5.0 1.0 2.0 5.0 3.0 1.0 9.0 1.0 8.0 2.0 46 68

2011 4
1.0 1.0 1.0 4.0 3.0 1.0 4.0 1.0 1.0 2.0 1.0 20 2.0 3.0 5.0 5.0 1.0 2.0 5.0 3.0 1.0 10.0 1.0 1.0 8.0 2.0 49 69

2012 5
1.0 1.0 1.0 4.0 3.0 1.0 4.0 1.0 1.0 1.0 1.0 19 2.0 3.0 5.0 5.0 1.0 2.0 5.0 3.0 1.0 10.0 1.0 1.0 7.0 2.0 48 67

2013 6
1.0 1.0 1.0 4.0 3.0 1.0 4.0 1.0 1.0 1.0 1.0 19 2.0 4.0 5.0 5.0 1.0 2.0 5.0 3.0 1.0 11.0 1.0 1.0 7.0 2.0 50 69

2014 7
1.0 1.0 1.0 4.0 1.0 1.0 3.0 1.0 1.0 1.0 1.0 16 2.0 5.0 4.0 4.0 2.0 4.0 2.0 1.0 9.0 1.0 1.0 4.0 2.0 41 57

2015 8
1.0 1.0 1.0 2.0 1.0 1.0 3.0 1.0 1.0 1.0 1.0 11 1.7 4.5 4.0 4.0 1.8 4.0 1.5 0.9 8.0 0.9 0.9 1.8 0.9 35 46

2016 9

2017 10

0.3

1.0

0.5

0.3

0.5 1.5

4.3 7.4

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12.17

Operating Cost

The mill will process 12,285,193 tonnes of ore in six years and ten months of operation. For the first year, saprolite will be processed at a rate of 5,500 tonnes per day. The hard rock and transition ore will be added to the mill feed in the third year of operation at a hard rock/transition ratio of 20 to 60% in years 3 to 5, increasing to 90% in year 6 and 100% in the last year. The average total production rate will remain at 5,500 tonnes per day for the life of mine, unless new saprolite ore is discovered to offset the increase in hard rock ore. The average grades for soft rock, transition ore and hard rock are 2.77 g, 3.39 g and 4.03 g Au respectively for an overall average of 2.82 g/t milled. Recoveries for soft rock, transition ore and hard rock are 93.0%, 80.0% and 58.0% respectively for an average of 77.81% over the life of the mine. Gold production averages 110,642 ounces per year, peaking in the first year at 167,900 ounces and totalling 866,696 ounces for the life of mine. The estimated average mill operating costs are $5.65 per tonne for processing and $1.54 per tonne for power for an average total of $7.19 per tonne milled for the life of mine. Power costs are lower in the first year, when only soft rock is being processed. Power, wages and reagents make up 70% of the total mill costs. Power costs increase with the introduction of hard rock in the second year. This is somewhat offset by a reduction in wages as expatriate positions are phased out. Mill production and detailed unit costs for grinding and power are shown in Table 12.4 and Table 12.5, while Table 12.6 and Table 12.7 show a breakdown of reagent consumption and costs by ore type.

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Table 12.4
MILL PRODUCTION SUMMARY
Tonnes
Year Saprolite Transition Hard Rock 2008 2009 2010 2011 2012 2013 2014 TOTAL 2,007,500 2,007,500 1,608,035 1,757,761 751,463 149,472 0 8,281,732 0 0 196,035 25,699 178,435 10,145 10,670 421,034 0 0 203,380 224,040 1,021,251 1,200,000 933,756 3,582,427 2,007,500 2,007,500 2,007,500 2,007,500 1,951,149 1,359,617 944,427 12,285,193 2.45 2.80 2.08 1.75 2.00 2.03 0.78 2.27 0 0 4.18 3.49 2.66 2.13 1.90 3.39 Total Saprolite

Grade Au g/t
Transition Hard Rock 0 0 4.62 4.65 3.52 3.66 4.79 4.03 2.45 2.80 2.54 2.10 2.86 3.47 4.76 2.82 92.6 93.0 93.0 90.0 93.0 93.0 93.0 92.9 Total Saprolite

Recovery
Transition Hard Rock 80 80 80 80 80 80 80 80 58 58 58 58 58 58 58 58 92.60% 93.00% 84.47% 84.07% 69.31% 60.35% 58.10% 77.81% 146,453 167,900 99,975 92,173 44,967 9,080 0 560,549 Total Saprolite

Ounces Au
Transition Hard Rock 0 0 21,071 2,306 12,216 556 521 36,670 0 0 17,524 19,415 67,216 81,922 83,487 269,478 142,453 167,900 138,570 113,894 124,312 91,558 88,009 866,696 Total

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Table 12.5
Mill Operating Cost Summary
Sommary 2005 Total Pre-production 2006 2007 Total Total 2008 Total 2,007,500 142,453 $/T 2009 Total 2,007,500 167,900 $/T 2010 Total 2,007,500 138,570 $/T Production 2011 Total $/T 2,007,500 113,894 2012 Total 1,951,149 124,312 $/T 2013 Total 1,359,617 91,558 $/T 2014 Total $/T 944,427 88,009

Tonnes Milled Onces produced

Administration Grinding Mill Saprolite Feed System Grinding Circuit Leaching /CIP Circuit Thickener & Tanks Carbon Strip / Regeneration Reagents Supply Refinery Tailings Management Process Control Mill Detoxification System Thickened Tailings System Process Water System Fresh Water System Compressed Air Fire - Mill Protection Electrical - Mill Distribution Mill Facilities Mill Services Instrumentation and Electrical Metallurgical - Lab Mechanical Maintenance Energy Total $/oz Salary Revtement Grinding Reagents Metallurgical - Lab Maintenance Crusher Maintenance Grinding Carbon Strip / Regeneration Maint. Freight Energy Other

28,708 28,708 27,208 1,500

110,332 22,542 132,874 122,374 9,000 1,500

118,432 117,084 9,753 75,430 1,940 6,000 2,896 62,568 85,331 197,735 677,167 423,689 26,879 90,000 22,680 24,320 80,000 9,600

147,232 161,169 87,701 1,289,678 1,259,560 54,000 78,060 2,673,079 82,435 38,400 18,000 909,971 439,647 12,000 6,000 13,800 1,200 15,600 24,000 18,000 921,281 491,775 1,316,048 2,308,466 12,367,106 87 3,355,358 126,526 823,075 3,775,660 335,159 107,000 462,100 715,362 320,000 2,308,466 38,400

0.07 0.08 0.04 0.64 0.63 0.03 0.04 1.33 0.04 0.02 0.01 0.45 0.22 0.01 0.00 0.01 0.00 0.01 0.01 0.01 0.46 0.24 0.66 1.15 6.16 1.67 0.06 0.41 1.88 0.17 0.05 0.23 0.36 0.16 1.15 0.02

147,232 161,169 87,701 1,268,637 1,259,560 54,000 78,060 2,673,079 82,435 38,400 18,000 909,971 410,692 12,000 6,000 13,800 1,200 15,600 24,000 18,000 818,509 491,775 1,180,906 2,295,918 12,066,645 72 3,088,488 105,485 823,075 3,775,660 335,159 107,000 462,100 715,362 320,000 2,295,918 38,400

0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 6 2 0 0 2 0 0 0 0 0 1 0

147,232 427,932 74,309 2,019,796 1,191,825 54,000 78,060 2,673,080 82,435 38,400 18,000 909,972 410,692 12,000 6,000 13,800 1,200 15,600 24,000 18,000 818,509 491,775 1,212,173 2,692,625 13,431,415 97 3,079,105 154,019 1,525,700 3,775,661 335,159 346,678 462,100 701,970 320,000 2,692,625 38,400

0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 7 2 0 1 2 0 0 0 0 0 1 0

147,232 338,097 79,329 1,782,875 1,191,825 54,000 78,060 2,673,080 82,435 38,400 18,000 909,972 410,692 12,000 6,000 13,800 1,200 15,600 24,000 18,000 726,594 491,775 1,212,173 2,550,509 12,875,648 113 2,987,190 137,923 1,304,875 3,775,661 335,159 256,843 462,100 706,989 320,000 2,550,509 38,400

0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 6 1 0 1 2 0 0 0 0 0 1 0

147,232 935,147 45,593 2,911,233 1,191,825 54,000 76,105 2,600,775 82,435 38,400 18,000 884,608 403,766 12,000 6,000 13,800 1,200 15,600 24,000 18,000 726,594 491,775 1,243,440 3,350,737 15,292,266 123 3,045,542 232,031 2,341,379 3,671,066 335,159 826,809 459,846 671,298 320,000 3,350,737 38,400

0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2 8 2 0 1 2 0 0 0 0 0 2 0

147,232 968,507 25,411 2,448,892 973,229 54,000 55,579 1,841,772 82,435 38,400 18,000 618,361 12,000 6,000 13,800 1,200 15,600 24,000 18,000 625,554 458,686 1,113,335 3,185,908 12,745,900 139 2,593,930 272,055 1,862,675 2,406,005 302,069 833,084 436,185 495,590 320,000 3,185,908 38,400

0 1 0 2 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2 9 2 0 1 2 0 1 0 0 0 2 0

116,559 745,826 16,150 1,894,150 708,975 42,750 39,422 1,294,242 72,599 30,400 14,250 430,151 9,500 4,750 10,925 950 15,600 19,000 14,250 393,411 363,816 794,976 2,538,278 9,570,929 109 1,934,602 290,741 1,359,974 1,676,079 239,827 623,945 288,369 438,713 150,000 2,538,278 30,400

0.12 0.79 0.02 2.01 0.75 0.05 0.04 1.37 0.08 0.03 0.02 0.46 0.01 0.01 0.01 0.00 0.02 0.02 0.02 0.42 0.39 0.84 2.69 10.13 2.05 0.31 1.44 1.77 0.25 0.66 0.31 0.46 0.16 2.69 0.03

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Table 12.6 Mill Consumables per Feed Type Ore Type Transition/ Hard Rock Blend kg/t 1.310 1.600 0.300 0.001 0.048 0.030 0.021 0.005 0.450 0.015 0.001 0.035

Saprolite kg/t Sag Mill Media Ball Mill Media Lime Cyanide Carbon Flocculant Sodium Hydroxide Nitric Acid Sodium Metabisulfite Copper Sulfate Ferric Sulfate Anti-Sealant 0.425 1.600 0.300 0.001 0.048 0.030 0.021 0.005 0.450 0.015 0.001 0.035

Price, Delivered to the Site $/t 1.069 306 1.815 5.024 2.277 3.406 993 755 802 1.827 556 3.406

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Table 12.7 Costs per Type of Ore Life of Mine Ore Type Saprolite Ore Tonnage Ratio (%) 7,883,815 65% $/t milled Wages 1.84 4,173,129 35% $/t milled 1.66 12,056,994 100% $/t milled Transition/ Hard Rock Total

Maintenance Crusher Maintenance Grinding Maintenance Leach/CIP/Tails Freight Labs Liners Grinding Media Other Reagents Cyanide Lime Carbon Anti-scalant Sodium Hydroxide Flocculant (mill and thickened tailing plant) Sodium Metabisulfite Copper Sulfate Power (mill and thickened tailing plant) TOTAL

0.06 0.25 0.44 0.17 0.12 0.07 0.45 0.02

0.65 0.25 0.41 0.17 0.13 0.20 1.40 0.02

0. 0.25 0 0.17 0.12 0.45

0.02

0.54 0.49 0.11 0.01 0.02 0.22 0.36 0.03 1.21

0.54 0.49 0.11 0.01 0.02 0.22 0.36 0.03 2.14

0.54 0.49 0.11 0.01 0.02 0.22 0.36 0.03

6.46

8.81

7.97

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13.0 INFRASTRUCTURE AND SUPPORT FACILITIES

13.1 Site Access The project is accessible via two roads, the north access (piste nord) and the south access (piste sud). The piste nord starts at the CD6, a dpartement road, and is about 8 kilometres (km) long, while the piste sud starts from national highway RN2 and runs for 16.5 km before reaching the site. The site access roads are shown in Figure 13.1.

Camp Caiman Access Roads Figure 13.1

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13.1.1. North Access The piste nord is for light traffic from the north of the project, particularly manpower. However, until the piste sud is completed, the piste nord remains the only access to the project, and will therefore see some controlled heavy traffic during this period. Consequently, we plan to upgrade this road at the beginning of the construction period to allow transport trucks to access the site. Once the piste sud is completed, the piste nord will be rehabilitated and used for light traffic only.

13.1.2. South Access The piste sud will be approximately 16,500 metres (m) long with a 6 m wide surface. It is understood that this private access road will be used to transport heavy mining equipment and generally to supply the various consumables required for the operation. Clearing of the access will begin in 2005. The cleared corridor is 30 m wide. An initial track about 3 m wide is required to allow light vehicles to transport workers to their worksites, provide emergency escape at all times for workers and convey fuel and other consumables. Various sizes of culverts will be installed during clearing to allow the free flow of creeks and other intermittent waterways. These do not require an authorization application. However, the installation of culverts for creeks that flow year-round is subject to an authorization application under the Water Act; this application will be filed in September 2005. accommodate the waterway in question. For future culverts that will not be installed during this first phase of work (for permanent creeks and other waterways), fording will be built using trees in order to minimize the impact to the creek bottoms. Machinery will therefore be able to drive over them while allowing the water to flow and minimize the amount of suspended matter introduced into the water stream. Three main wooden bridges approximately 10 m in length will be built to cross the Orfion, Virgile and Fourca Ouest creeks. In addition, three swamp protection bridges (natural water equilibrium) of the same length will be built in the swamp to the east of the Kounana, near the Fourca. Two other small bridges are planned for creeks The culverts will be 10 m long and large enough to

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found during inspection. Finally, the 30 m Koukana Bridge built entirely of wood from French Guiana should be complete in 2006. All the bridges will have a 90-tonne capacity.

13.1.3. Site Roads The site roads include all access roads to the pits, waste dumps, tailings pond, mill, maintenance shop and administrative building. Construction criteria for the roads include a laterite surfacing and in general a 10 m width. Culverts and ditches will be installed to ensure adequate drainage.

13.2 Service Buildings The service buildings, consisting of offices, a warehouse and a heavy equipment shop, will be grouped together on plateau east of the plant complex at elevation 45. The plateau and location of the buildings are shown in Figure 13.2.

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13.2.1. Administrative Building The administrative complex is a two-storey structure of modular construction, meaning that it is made of prefabricated modules that are assembled on site. The modules are 6,096 millimetres (mm) long by 2,438 mm wide. The administrative complex groups the following services together in one building: Mining operation, information technology and human resources; Environment and health and safety; Mine engineering; Geology and exploration; Conference room and training room; Showers, toilets and dining room; First aid; Security gate and hut.

13.2.2. Heliport A platform with the appropriate markings will be built to accommodate a helicopter. Helicopter service will be used for emergency evacuations as well as alternative gold transportation.

13.2.3. Heavy Equipment Shop and Warehouse The 86.5 m long by 18.6 m wide steel structure for this building will come from the Omai project in Guyana. The lower, 49.4 m long section will house the warehouse while the upper part will house the shop, which consists of eight work bays. The inner offices will be made of prefabricated modules. The heavy equipment shop is designed for mechanical maintenance of light and heavy equipment (trucks, bulldozers, shovels and other heavy equipment). It is equipped with a 20-tonne overhead crane, and all the bays are equipped with hoisting apparatus.

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The building is open on both sides to provide access to the equipment. The floor is sloped to allow drainage to a ditch that directs the water and lubricant along the side of the shop toward the oil/water separator so as to avoid accidental oil spills. Lubricant and compressed air distributors and electrical and water outlets are also planned. A concrete slab will be poured adjacent to the truck shop for tire repair work. A concrete slab is located near the shop to allow equipment to be washed prior to maintenance. The used water will be diverted by a ditch connected to the settling pond and the oil/water separator. A tool room and maintenance offices are located between the truck shop and the light vehicle maintenance area. One of the shop bays is fenced and is designated for the use of the drilling contractor. The lower part of the building serves as a warehouse. It is outfitted with storage shelves for inventory parts on one side and pallet supports on the other. Warehouse personnel will also be located in this building. A fenced area adjacent to the warehouse is used to store large parts.

13.2.4. Fuel Storage Fuel storage consists of two depots, separated so as to contain fire damage. A small depot is planned for gasoline and a large depot for diesel fuel. The gasoline depot consists of a compact unit that contains a holding tank, a reservoir and a distribution pump. The reservoir capacity is only 10,000 litres, and will be used principally for ATVS. The diesel depot has a concrete containment and roofing and a loading/unloading platform that slopes toward an oil/water separator. Storage consists of three reservoirs totalling nearly 40,000 litres, a storage tank for used oil from the maintenance shop, pumps and an oil/water tank.

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13.3 Municipal Works

13.3.1. Drinking Water The drinking water is drawn from a well in the Orapu. Submersible pumps pump the water to the treatment plant and from there to a 10,000-litre reservoir tank. An underground water system distributes the drinking water to users.

13.3.2. Fire Protection The fire protection system includes fire pumps, a water distribution system, fire hydrants and sprinklers. The fire pumps are designed for a minimal terminal pressure of 345 kPA from any point in the water distribution system. Every building has hose cabinets spaced at 15 m in any direction. Fire hydrants are installed around the buildings and processing facilities. A water sprinkler network is installed over the covered belt conveyor and above the hydraulic or lubrification system in the processing areas. The pumps will be located adjacent to the fresh water pumps at the pumping station beside the fresh water pond. Three pumps will be used: two main pumps and a small pump to maintain the pressure in the pipes. One of the main pumps will be run by an electric motor and the other by a diesel machine with an automated starter panel. All the pumps are controlled automatically according to the set pressure requirements.

13.3.3. Waste Water Treatment Plant Waste water is treated in prefabricated plants that arrive at the site ready for use. The waste water is directed to the plants via a sewer system. The water is discharged directly into the environment, and the sludge is collected by a local waste management company.

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13.3.4. Camp The current camp will be improved by installing new dormitories and upgrading the kitchen. This complex will initially be used to house expatriates during the construction period, and then for employees staying on site. The dormitories are modular-type units, each accommodating two individual bedrooms separated by a shared toilet and shower. Nineteen modules will be installed for a total of 36 employees. There will also be an office to manage the camp activities.

13.4 Cayenne Office Leasehold improvements are planned for the office that is currently rented in Cayenne. The interior will be reorganized to accommodate more employees.

13.5 Permanent Housing A nine-unit housing complex will be built on land to be purchased in Cayenne.

13.6 Capital Costs Table 13.1 provides a summary of the capital costs for the infrastructure and auxiliary facilities.

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Table 13.1 Infrastructure and Auxiliary Facilities Capital Cost Estimate Activity Centre South Access Bridges North Access (rehabilitation) Heliport Camp Caiman administrative building Cayenne administrative building Cayenne housing Truck shop and warehouse Fuel depot Concrete plant Drinking water Fire protection system Sewage treatment Total: Cost ($000) 562 426 186 5 742 1,178 190 2,955 1,569 422 195 358 529 415 9,732

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14.0 ADMINISTRATION ET SERVICES

14.1 Organizational Structure Project organization considers the workforce requirements for both the construction and operating phases. The CBJ-CAIMAN management team is responsible for project management for these phases, while Cambiors Construction Group oversees the construction activities and supervision of national and international contractors. The operating team will be put in place during the preproduction period to handle excavation, equipment maintenance, administrative support and construction activity logistics. In addition, training programs will be developed and activated in line with local training channels and internal and external training channels at Cambiors Canadian operations, to promote the integration of local manpower into CBJ-CAIMAN S.A.S.s industrial mining activities. Despite such efforts to integrate the local workforce, the presence of expatriate employees is important, particularly for engineering specific to the mining operation, as well as for on-the-job training during the initial production period.

14.1.1 Operating Workforce The projects hierarchical structure is simple and is based on the relocation of department heads to French Guiana to allow direct access to management, process oriented teamwork, quality first and minimal delays. Figure 14.1 shows the project organization chart for the operating phase.

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G eneral Director

Total em ploys 337


Secretary

Adm inistrative Assistant

Superintendent Geology

Superintendent Engineering

Superintendent M aintenance

Superintendent M ining Operations

M ill Superintendent

M etallurgical Geological Exploration Generator Sets Operations

M ecanical

Electrical

Superintendent Health & Security

Superintendent Hum an Resources

Lead Security

Purchasing & Supply Superintendent

Controller

Superintendent Environem ent

19

Continual Im provem ent Coordinator

Telecom m unication Coordinator

Chief Laboratory

13

Figure 14.1

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Operating manpower requirements are for 342 people for the first five years of operation and diminishing thereafter starting at the sixth year of operation (Table 14.1). The proportion of expatriates will be 14% in the first year and will stabilize at 10% in the 4th year. Management positions for which specific mining expertise is required will be filled by expatriates who will be gradually replaced by nationals based on the success of the various knowledge transfer steps. The plan is to place a large number of local residents in management positions in such areas as procurement, purchasing, accounting, human resources, the laboratory, communications, technical services, maintenance and mining.

Table 14.1
CBJ-CAIMAN S.A.S. PROJECT Manpower Summary Construction
MANPOWER 2005 2006 2007 P0 P1 P2 1 1 23 38 42 56 7.4 2008 2009 1 2 Exp Nat Exp Nat 6 17 25 48 37 204 48 289 6 17 22 45 37.5 213 46 259 304

Operation
2010 2011 3 4 Exp Nat Exp Nat 5 17 20 42 37 216 49 302 5 13 19 37 37 219 48 304 2012 2013 2014 5 6 7 Exp Nat Exp Nat Exp Nat 5 12 19 36 37 225 50 312 5 5 16 26 31 144 41 216 242 4 3 11 18 25.7 87 35 148 166

ADMINISTRATION MINE MILL Total Grand Total

0.25 1.5

337

344

341

348

14.2 General Services General and administrative services include general management, corporate backcharges, accounting, telecommunications, environmental management, human resources, purchasing and procurement, health and safety, public security, and finally, housing for staff posted to French Guiana, as well as the various modes of transportation for local and expatriate employees on rotation. while the other services will support production activities on site. Corporate management, a portion of the human resources and purchasing departments and accounting will be located in Cayenne,

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14.2.1 General Management General management consists of a general manager and his assistant. Costs assumed under this

heading includes insurance costs, municipal taxes applicable to the project, as well as the cost of the financial guarantees required under the operating authorizations for the storage and use of cyanide and explosives and for the risks associated with the operation of a tailings facility.

14.2.2 Corporate Expenses Corporate expenses include the cost of auditing the accounting books of CBJ-CAIMAN S.A.S. and CBJFRANCE S.A.S., as well as the cost of conducting board meetings for two companies, who meet quarterly. Costs related to CBJ PURCHASING for purchasing, expedition and transportation services from Houston will be backcharged. redistributed costs. The CBJ MANAGEMENT SERVICES costs to process the remuneration and transportation of expatriates working on the project are also included in the

14.2.3 Accounting The accounting group consists of three people: a chief accountant, an accountant and a paymaster/accounts payables clerk. budget. Banking fees and supplies are also included in the accounting

14.2.4 Telecommunications One person is assigned to maintaining communications and managing the site network; overseeing the operation of the computer, satellite and radio systems. The telecommunications budget includes licensing costs related to the various software packages, including the Oracle software for management of orders, purchases and inventories as well as site accounting. Telephone and internet costs are also included in this budget.

14.2.5 Environmental Management Environmental management is handled by two people: an environment superintendent and a technician. They are responsible for ensuring environmental compliance and for implementing and maintaining the

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ISO 14001 environmental management system. The environment team oversees management of the mine tailings disposal, effluent quality and management of industrial wastes. They are also responsible for communications with governmental authorities, the environmental consultation committee, the external experts committee and any non-governmental organizations active in environmental protection. Moreover, the department head is responsible for making employees aware of the companys environmental policies through special training sessions.

14.2.6 Human Resources The human resource department manages the hiring of local and expatriate employees, the various remuneration and fringe benefit plans, labour relations and negotiations with the various local unions, as well as the establishment of protocols for the relocation of expatriates to French Guiana. This department also coordinates the social activities of the work council as well as management of philanthropic activities. Organizing the relocation of expatriates to French Guiana also falls within the departments mandate. The human resource group will also be in charge of implementing and monitoring Cambiors production system, which includes the introduction of the companys philosophy through Phil and Au Caf de Margot training, as well as the management, integration and monitoring of continuous improvement activities, including in particular the Kaizen workshops.

14.2.7 Purchasing and Procurement The purchasing and procurement department covers local procurement, purchasing in Houston and internationally, coordination of shipping and port operations, customs clearance and land transportation to the site. This department manages the inventories out of the site warehousing facilities, distribution to users, purchase orders, expediting and materials receiving. The CBJ PURCHASING group in Houston is responsible for sourcing overseas supplies, negotiating large contracts and consolidating merchandise in containers. Local purchasing and transport logistics will be managed out of the Cayenne office. A total of nine people will work in this department, including the purchasing and procurement superintendent, the warehouse manager, a local-products buyer, an inventory manager, a port agent, three warehouse clerks and a loader operator.

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14.2.8 Health and Safety This department consists of two people: a health and safety coordinator and a preventionist. Their responsibilities include setting up and managing the job safety management system, coordinating the formulation of safe work standards, performing industrial hygiene controls and coordinating health and safety training activities. They must develop an emergency plan and oversee the control of the fire prevention system and the creation of intervention teams for accidents and emergencies. Finally, their responsibilities include the prevention of malaria and dengue fever associated to tropical forest environments.

14.2.9 Public Security This team overseas mine site security on an ongoing basis. It patrols the periphery roads and controls site access, as well as protecting gold shipments until they are transferred to the carrier. Site, office and housing control will be supported by 19 security agents, as well as electronic surveillance systems. This department is headed by the chief of security.

14.2.10 Housing and Cars This budget item includes housing and car rental costs for expatriates. The department heads are

housed in residences grouped together in a real estate complex to reduce capital and operating costs and facilitate public security for families. Given their training role, which is limited to the initial years of operation, other expatriate staff will be housed in apartments. Due to the substantially higher cost of living in French Guiana, expatriates living in the dpartement will be eligible for a cost of living adjustment, which essentially consists of having lodging and a car provided for them. In all, nine expatriate department heads will be housed in residences, 12 staff will stay in apartments requiring 19 vehicles to be leased. In addition, to meet the initial training requirements for national employees, 28 staff will work shift work and be housed in a camp near the operation in the early years of production.

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14.3 Transportation of Manpower and Materials Transportation of equipment and materials for the project is a logistical challenge and must be extremely well coordinated. The main steps are as follows: Transportation of mainly North American-sourced supplies from the port in Houston Container procurement and preparation Organization of shipping Planning and loading of ships Destination unloading and customs clearance at the ports of Dgrad-des-Cannes and St-Laurent-duMaroni Truck loading and transportation to the site Special handling for non-standard goods Air transportation (limited use)

14.3.1 Road Transportation Access to the planned mine infrastructure will be via national highway 2 (RN2) for 70 kilometres (km) and the Dgrad Corrze private road for a distance of two kilometres, then the private Camp Caiman road called the piste sud for 16.6 km. The total distance from Cayenne is therefore 89 km. Due to the size of the project, the impact of multiple voyages through the residential town of Roura and the fact that the CD6 runs through the French Guiana regional nature reserve, a new access road will have to be built to supply the mill and allow for personnel transportation. The current project access via Roura and the narrow road (CD6) that runs along the Kaw-Roura swamp natural reserve and the Trsor voluntary reserve strongly limits the potential for transporting heavy equipment and regulated products. The project design team therefore preferred a site access via the RN2, despite the distances involved. However, some of the equipment will be transported via the CD6 prior to completion of the south access road. For the south access via the RN2, the Comt bridge, 42 km from the sea port, represents a major constraint. It is only three metres wide with a 26-tonne capacity, although permits can be obtained exceptionally to transport equipment up to 40 tonnes. Consequently, the most likely option for some of

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the heavy mill and mine equipment is to transport it by barge either directly from the sea port or simply across the Comt River. The use of the alternative access, via the CD6 between Roura and Kaw and a private road called the piste nord, which crosses the CD6 three kilometres upstream from the Camp Caiman inn and also leads to the planned facilities, will be limited to personnel and contractors coming from the Roura-Kaw area, except during initial mill construction and the mine preproduction period. Contractors are able to transport material from the city and sea port. These contractors have good quality equipment and can convey all types of cargo. The cost of transportation is about US $30 per tonne. During the preproduction period, about three heavy truck voyages per day will be required for consumables, plus about one voyage of diesel fuel every other day. A bus service will be offered to employees from the capital for the three shifts. A local operator has sufficient buses to provide a service of some 42 trips per week.

14.3.2 Shipping At the moment, shipping to French Guiana is from Europe. To date, there has been no shipping between the United States and French Guiana. Associated Transport Lines (ATL), which is based in Houston and ships to the Omai Gold Mines Limited (OGML) and Rosebel Gold Mines N.V. (RGM) operations, is open to offering services to French Guiana for quantities of over 500 tonnes. Under these conditions, the minimum cost of chartering a ship would be US $50,000. Shipping costs were estimated based on quotes received from ATL for the Houston-Cayenne route. Shipping from Europe is on average 35% more costly, and most boats are container-type ships and are consequently incapable of handling the bulk materials that we transport on a regular basis. Shipment frequency will be dictated by the volumes to be carried. Two shipments per month are

expected during preproduction, and only one per month during production. The Dgrad-des-Cannes dock requires upgrading, but does not in any way prevent ship unloading. There is sufficient exterior space available for the storage of bulk materials, which comprises most of the cargo. The only item of concern is lime, which must be stored in a sheltered area. Unloading costs at Dgraddes-Cannes port are very high, among the highest in the world.

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In order to limit ship unloading costs as well as delays related to the operating schedule at the Dgraddes-Cannes port, we plan to use the St-Laurent-du-Maroni river port facilities following dredging work and dock repairs. Despite the fact that the west port is located on the border with Suriname, more than 250 km from Cayenne, we expect ship unloading and land transportation costs to be 35% lower due to the absence of significant taxes on facility use, fewer unloading delays and lower unloading costs. We will nonetheless be required to use the Dgrad-des-Cannes port for non-standard equipment and fuel. Shipping and road transportation costs are redistributed among the various users, namely the mill, mine and services. Consequently, only the general transportation portion for the services department is included in the general services and administration budget.

14.3.3 Air Transportation Air transportation costs are limited to personal goods, emergencies during construction, expatriate transportation and the annual return trip for families posted in Cayenne to their country of origin.

14.3.4 Human Resource Requirements A maximum of 43 people is required to run the above-mentioned departments. Table 14.2 shows a summary of required personnel by department for the construction and production phases.

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Table 14.2
CBJ-CAIMAN S.A.S. Project Manpower Construction
Manpower Expatriate Employees General Manager Chief Accountant / Controller Telecommunication Coordinator Environment Superintendent Human Resources Director Purchasing & Supply Superintendent Health & Safety Coordinator Total Local Employees Administrative Assistant Chief Accountant / Controller Pay Master / Accounts payables Accountant Electronic & Computer Technician Environmental Technician Labour Relations Consultant Administrative Assistant HR Secretary Buyers Boomtruck Operator Warehouse Clerk Warehouse Manager Utility Truck Driver Preventionist Nurse Health & Security Coordinator Chief of Security Head Security Guard Security Guard - site Security Guard - Head Office Guard Substitute Total Grand Total 2005 P0 0.3 2006 P1 1.0 0.8 1.0 1.0 1.0 1.0 5.8 2007 P2 1.0 1.0 1.0 1.0 1.0 1.0 6.0 2008 1 1.0 1.0 1.0 1.0 1.0 1.0 6.0 2009 2 1.0 1.0 1.0 1.0 1.0 1.0 6.0 2010 3 1.0 1.0 1.0 1.0 1.0 5.0 2011 4 1.0 1.0 1.0 1.0 1.0 5.0

Operation
2012 5 1.0 1.0 1.0 1.0 1.0 5.0 2013 6 1.0 1.0 1.0 1.0 1.0 5.0 2014 7 1.0 1.0 1.0 1.0 1.0 5.0 2015 8 0.8 0.8 0.8 0.8 0.8 4.2 2016 9 2017 10

0.3

0.7

0.3 0.3

1.0 1.0 1.0

1.0 1.0 1.0 1.0

1.0 1.0 1.0 1.0 1.0 2.0 1.0 3.0 3.0 1.0 1.0 1.0

1.0 1.0 1.0 1.0 1.0 2.0 1.0 3.0 3.0 1.0 1.0 1.0 0.5 1.0 5.0 12.0 2.0 38.5 43.5

1.0 1.0 1.0 1.0 1.0 1.0 1.0 3.0 3.0 1.0 1.0 1.0 1.0 1.0 5.0 12.0 2.0 38.0 42.0

1.0 1.0 1.0 1.0 1.0 1.0 1.0 3.0 3.0 1.0 1.0 1.0 1.0 1.0 5.0 12.0 2.0 38.0 42.0

1.0 1.0 1.0 1.0 1.0 1.0 1.0 3.0 3.0 1.0 1.0 1.0 1.0 1.0 5.0 12.0 2.0 38.0 41.0

1.0 1.0 1.0 1.0 1.0

1.0 1.0 1.0 1.0 1.0

0.8 0.8 0.8 0.8 0.8

0.5 1.0 1.0 0.5 0.5 0.5

2.0 1.0 3.0 3.0 1.0 1.0 1.0

1.0 2.0 2.0 1.0 1.0

1.0 2.0 2.0 1.0 1.0

0.8 1.7 1.7 0.8 0.8

0.8 2.5 6.0 1.0 17.3 23.0

1.0 5.0 12.0 2.0 36.5 42,0

1.0 5.0 12.0 2.0 38.0 43.0

1.0 1.0 5.0 10.0 1.0 31.0 36.0

1.0 1.0 5.0 10.0 1.0 31.0 36.0

0.8 0.8 4.2 8.3 0.8 25.8 30.0

0.7 1.3

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14.4 Operating Costs General services and administration expenses to be capitalized during the construction period will extend over a period of 27 months and represent a total of US $9.6 million. The costs are detailed in section 17.0 along with the other preproduction costs. General services and administration expenses for the production period are shown in Table 14.3. .

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Table 14.3
General Services and Administration Operating Budget by Activity ACTIVITY GENERAL MANAGEMENT CORPORATE ADMINISTRATION ACCOUNTING TELECOMMUNICATIONS ENVIRONMENT PURCHASING & SUPPLYI HUMAN RESOURCES HEALTH & SAFETY PUBLIC SECURITY HOUSING TRANSPORTATION 2008 1 860,956 251,817 207,740 449,999 594,083 960,566 341,845 174,842 683,292 690,666 1,346,268 6,562,074 2009 2 969,555 187,982 207,740 437,999 584,331 960,566 317,845 210,568 683,292 571,041 1,311,628 6,442,548 2010 3 1,359,629 182,648 207,740 437,999 584,331 960,566 264,688 166,151 677,292 539,176 1,285,463 6,665,684 2011 4 1,351,303 174,230 207,740 437,999 584,331 960,566 264,688 166,151 677,292 479,936 1,205,983 6,510,219 2012 5 1,355,312 172,150 207,740 437,999 584,465 960,566 264,688 166,151 677,292 438,946 1,166,265 6,431,575 2013 6 1,300,126 153,028 203,740 408,799 580,331 630,758 169,530 164,951 595,241 338,421 851,265 5,396,192 2014 7 1,129,818 136,193 166,783 328,490 545,182 419,367 127,534 136,910 480,395 296,774 657,173 4,424,620 2015 8 8,326,700 1,258,048 1,409,224 2,939,285 4,057,056 5,852,955 1,750,819 1,185,725 4,474,097 3,354,962 7,824,043 42,432,913 TOTAL

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15.0 ENVIRONMENTAL LEGISLATION AND WORK REGULATION

15.1 Authorizations Mining operations generally require two types of authorization: A mining authorization under the Mining Code (Article 83); An authorization for the processing facilities under law No. 76-663 of July 19, 1976 on classified installations for environmental protection (installations classes pour la protection de lenvironnement, or ICPE), codified in Book V, Title 1 of the Environmental Code. These two procedures include authorizations for watercourse crossings and derivation and water withdrawal and discharge, but not the access road. Consequently, watercourse crossing and complete or partial filling of watercourse beds for road access are subject to an authorization under law No. 92-3 of January 3, 1992 on water, codified in Book II of the Environmental Code. Deforestation on French state-owned land (where the project is located) is subject to an authorization granted by the manager of such land, the National Bureau of Forests (Office National des Forts, or ONF). This authorization is not required if the applicant owns the land. However, if during the deforestation activities the destruction of protected botanical species occurs, a special licence must be granted by the French environmental authorities prior to the works. Finally, the construction of the plant and ancillary facilities requires a construction permit.

15.1.1 Authorization for the Initiation of Mine Operations Decree No. 2001-205 of March 6, 2001 applying and adapting decree No. 95-696 of May 9, 1995 on the initiation of mine operations and mining policy to French overseas departments, determines the conditions under which the authorization for the initiation of mine operations is granted. The perimeter of the facilities in question includes the open pits, dumps, mine roads and surface facilities required for mine operation. Under this regulation, all of these works are subject to a procedure based on a file that contains:
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An administrative section covering the purpose of the application, the location, nature and scope of the planned activities, access, a summary of the authorization procedure, the communes involved in the public inquiry, general technical and financial information on the applicant and a review of any easements and constraints affecting the site; A technical section covering the ore body, proposed mining plan, power consumption, products used, handling of hazardous materials, the mine closure plan and the construction method. feasibility study; An environmental impact study as defined in Article 2 of decree No. 77-1141 of October 12, 1977 as amended, implementing law No. 76-629 of July 10, 1976 on the protection of nature. The contents of this study are summarized in Section 14.2.5 below; A document indicating the impact of the planned work on the water resources and, if applicable, the counteracting measures planned, as well as the projects compatibility with the master plan and the development and water management plan; A document indicating the projects compatibility with public safety. The purpose of this document is to discuss the risks associated with the mine, estimate their nature and consequence, describe the measures used to reduce the likelihood and impact of accidents and specify the private and public emergency measures to be used at the mine; A health and safety document showing how the project complies with applicable health and safety regulations. This document is primarily based on decree No. 59-285 of January 27, 1959 concerning the general regulations for the operation of mines other than solid mineral fuel mines and hydrocarbon mines using wells (rglement gnral sur lexploitation des mines autres que les mines de combustibles minraux solides et les mines dhydrocarbures exploites par sondage, or RGMA), decree No. 80-331 of May 7, 1980 concerning the general regulations of the extractive industries (rglement gnral des industries extractives, or RGIE) and the Labour Code. Article 2 of decree No. 95-696 of May 9, 1995, as amended, states that the authorizations and declarations provided for in the decree are equivalent to authorizations and declarations under the Water Act. This section therefore reproduces the information in Chapters 3 and 4 and portions of Chapters 8 and 11 of this

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Figure 15.1 shows the procedure for initiating mine operations. According to the Regional Bureau of Industry, Research and the Environment (Direction Rgionale de lIndustrie, de la Recherche et de lEnvironnement, or DRIRE), the process takes about 9 months.

Applicant

DRIRE preview

Filed April 25, 2005

Applicant

Request scheduled for official filing in mid-September 2005

Prefect

DRIRE

Prefect

Public inquiry (3 months)

Mayor, town councils

Prefect

DRIRE

Departemental Health Council Applicant's observations (8 days)

Prefect

Prefectural authorization order

Prefectorial decree expected by end of June, 2006

Authorization procedure for mine development

Figure 15.1

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Administrative departments concerned Local water commission

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15.1.2 Authorization to Operate a Mineral Processing Plant The processing facilities are subject to decree No. 77-1133 of September 21, 1977, as amended, implementing law No. 76-663 of July 19, 1976 on ICPE, and therefore to a separate authorization procedure. The Camp Caiman mill includes the main plant facilities such as the crusher, grinding circuits and tailings ponds as well as the various storage facilities for explosives and toxic products and the maintenance shop for vehicles and motors for the auxiliary facilities. Each facility is generally covered by a separate section in the nomenclature. There are three levels of constraint depending on the section and the quantities stored or used: declarations (D), authorizations (A) and restricted authorizations (autorisation avec servitudes, or AS). Certain sections call for a declaration (most chemical products used in the plant), others an authorization (most notably the tailings pond, use of explosives, and ore grinding and storage), and sodium cyanide storage requires a restricted authorization. Cyanide storage is effectively subject to the so-called Seveso system for the control of major accident hazards involving dangerous substances. This system resulted from the French adoption of European Directive 96/82/EC of December 9, 1996 by ministerial order dated May 10, 2000 and its implementation circular. On the operational level, this means heavier constraints, both in the preparation of the Certain restrictions are authorization request and later, in the operation of the facility in question.

applicable, although because Camp Caman is in a rural area, these will be eased somewhat. The start-up of these facilities will therefore be subject to prior authorization issued by the administrative authorities following a review of the exploitation authorization application file and a public inquiry. The overall authorization procedure for mineral processing facilities is shown in Figure 15.2. This process takes place in parallel with the authorization procedure for the initiation of mine operations, and it is unlikely that this authorization will be issued separately, despite the fact that the investigation process is about two months shorter.

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Applicant

DRIRE preview

Filed April 25, 2005

Applicant

Prefect Inspection of classified installations (DRIRE) Prefect Public inquiry (1 month)

Request scheduled for official filing in mid-September 2005

Health, Safety and Working Conditions Committee

Administrative departments concerned

Mayor Prefect Water Agency Applicant's observations (8 days)

Inspection of classified installations

Departmental Health Council

Prefect

Prefectural Authorization Order

Prefectorial decree expected by end of June, 2006

Authorization procedure for operation of an ICPE

Figure 15.2

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The authorization application file contains: An administrative section covering the purpose of the application, the location, nature and scope of the planned activities, access, a review of the authorization procedure, a list of classified installations involved in the project, the communes involved in the public inquiry, general technical and financial information on the applicant and a review of any easements and constraints affecting the site; A technical file containing a review of the mining project, descriptions of the ore feed and final product, a description of the milling process, a description of the main facilities, ancillary facilities and tailings pond, choice of power supply, chemical products and explosives to be used, the internal handling of hazardous materials, the final closure plan and finally, the construction method. This file therefore reproduces the information in Chapters 5 to 8 of this feasibility study, as well as a portion of Chapter 11; An environmental impact study as defined by Article 3 of decree No. 77-1133 of September 21, 1977, which repeats the provisions of other legislation (protection of nature, water) and adds a section on the health risks related to exploitation. Under French administrative law, the impact study deals with the normal operation of the facilities, while abnormal operation (incidents / accidents) is dealt with in the danger study; A danger study describing the dangers that the installation may present in case of an accident, identification of possible accidents, determination of important safety functions, a description of foreseeable accidents and the nature and scope of their consequences, scenarios likely to result in accidents, and safety procedures; A health and safety notice containing a list of applicable health and safety texts, a personnel list, general health and safety conditions, specific provisions, work accident risks and preventative measures, and finally, planned controls.

15.1.3 Construction and Deforestation Authorization Any deforestation on state-owned land requires an authorization from the ONF, the land manager. The authorization takes one to three months to obtain and is covered by a tripartite agreement among the applicant, the ONF and the tax department. As is the case for the other facilities to be built, land rights are required for mine operation and ICPE facilities.
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Such rights are acquired either by purchasing the state-owned land, in which case an authorization is no longer required, or through an applicant-ONF-tax department agreement, in which case deforestation requirements are an integral part of the agreement. An authorization is also required for road building. Any stationary building larger than 19 m built to meet project requirements requires a construction permit from the Departmental Procurement Bureau (Direction Dpartementale de lquipement, or DDE). The application process takes three months. However, for a building housing one or more ICPE, the legislator has provided for phasing between authorization procedures, and the construction permit can only be obtained at least one month after the end of the ICPE public inquiry (see Figure 15.2), meaning a wait of about six months.

15.1.4 Road Building Authorization Road building is governed by the law on the protection of nature, and watercourse crossings are governed by law No. 92-3 on water. Any road requiring an investment of more than 1.9 million is subject to an authorization procedure that includes a public utility inquiry in accordance with Schedule 6 of decree No. 85-453 on the democratization of public inquiries and environmental protection. As the north mill access via CD6 will use a road built during the exploration phase, and the south mill access requires a 16.5 kilometre (km) road that will cost less than the decreed cost limit, road construction for the project will not require a procedure that includes a public inquiry. However, a specific authorization application under the Water Act is required for the bridges over the Kounana River and the Fourca Ouest creek, as well as for certain piped sections and the partial filling of the main Kounana river bed, which is crossed in the vicinity of a wide, low-lying flood zone.

15.2 Environmental Impact Study Each file (classified installations and initiation of mine operations) includes an environmental impact study covering the so-called normal operation of the planned Camp Caiman facilities. As the regulatory texts are vague in this regard, normal operation is simply defined as being the opposite of abnormal operation, in other words, incidents or accident situations.

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15.2.1 Classified Installations The contents of the impact study for the Camp Caiman classified installations file is defined by Article 3 of decree No. 77-1133 of September 21, 1977 (for instance, the study must include a non-technical study to facilitate understanding of the points presented to the public during the public inquiry). The study is based on numerous characterization studies on the initial state of the environment, financed by Asarco and CBJ-CAMAN S.A.S., on engineering design data, and on numerous studies covering the impact assessment requirements. Finally, the impact study covers the life of the project, from construction through the entire operation to closure. Any material change to the configuration of the facilities during the operating period would require a new file, including a new impact study. As the Camp Caiman area receives a lot of rain (about 4,100 millimetres (mm) on average recorded annually at the Camp Caiman station), water management is the main focus of the study. The volumes of water that must be managed during the rainy season are substantial, as are the daily fluctuation, due to equatorial rains that can total up to 250 mm in 48 hours (10-year event). In contrast, in the dry season, rainfall is very low and even negative in certain months. At the same time, plant water requirements are constant, no matter what the season. The impact studies for the classified installations and initiation of mine operation files are aligned on this point, as the water management plan is the same for the entire project. However, in general, the study attempts to separate the impacts related to the classified installations from those related to the initiation of mine operations, in the context of an overall view of the project. A detailed assessment is also made of the impacts related to all the other environmental elements (air, noise, soil, waste, biological and human milieus). Two models are integrated into the study contents: first, an aerodispersive model for combustion facility emissions and rock dust, and second, a recently developed hydrodispersive model for water from the saprolite in the tailings pond area. A distinguishing feature of an impact study in the French context is the inclusion of a section on health risks, a requirement that was introduced by law No. 96-1236 of December 30, 1996 on air and rational energy use. The ministry has financed two methodology guidelines to help consulting firms produce this section, one by the Health Watch Institute (Institut national de veille sanitaire, or InVS), and the other by the National Industrial Environment and Risks Institute (Institut National de lEnvironnement Industriel et des Risques, or INERIS). In the case of the Camp Caman project, the fact that the exposed population lives relatively far from the site and the primary water course (the Koukana) is only used for swimming downstream from the operation, are notable factors. The nearest drinking water intake is more than 25 km downstream from the project.

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The impact study includes a section on the closure of the classified activities. This section approaches this issue in the manner of a detailed declaration of intent, covering the dismantling of structures (infrastructures and superstructures), waste disposal, site reclamation, future monitoring requirements, etc. The current regulatory context provides for the submission of a detailed reclamation project to authorities only three months prior to final closure of a classified activity. The establishment of financial guaranties is planned for the sole tailings pond. As for all waste storage facilities covered by this section, these guarantees are funded at the beginning of the operation and are meant to cover the costs of rehabilitation, potential accidents and post-closure monitoring. regulations provide for the possibility of a joint guaranty to cover these amounts. The

15.2.2 Initiation of Mine Operations The impact study for the initiation of mine operations has a similar format to the classified installations study. The impact statement called for under the Water Act, dealing with the many hydraulic facilities planned for the Camp Caiman site, is attached to this study. As in the case of classified installations, only an initial (albeit complete) form of the mine rehabilitation project is presented in the impact study, while its final content is formalized only once the mine closure process begins. It covers subjects such as management of mining risks, site reclamation and monitoring requirements. The mine closure process is outlined by law No. 94-245 of March 30, 1999 on liability for damages arising from mine operations and the prevention of post-closure mining risks, the provisions of which are codified in Title IV Chapter III (Article 91) of the Mining Code, and are specified in decree No. 2001-209 of March 6, 2001 amending decree No. 95-696 of May 9, 1995. It marks the end of the period during which the concession is governed by mining policy, the company still owns the mining rights and the administrative authorities are still able to resort to the mining policy in case of a major disturbance (e.g. subsidence, ground instability, acid runoff, etc.) The renunciation of the concession marks the end of the life of the mining rights. It is granted by the administrative authorities after a review of the renunciation request, and results in the transfer to the state of monitoring and mining risk prevention (Article 93 of the Mining Code). The transfer only takes effect once the company has submitted to the state all the equipment and studies required for monitoring and risk prevention.

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15.3 Danger Study

15.3.1 Classified Installations The danger study for the classified installations file covers abnormal operation of the planned facilities. Even with high-quality design and construction, there is unfortunately always potential for material faults and human error. The goal of the danger study is to examine possible accident scenarios and propose prevention and protection measures designed to reduce the likelihood of occurrence and minimize their consequence. While past studies took a deterministic approach, the current approach is probabilistic. Like the impact study, the danger study deals with the consequences of an accident outside of the industrial property. The contents of the danger study are defined by Article 3 of decree No. 77-1133 of September 21, 1977. Camp Caiman is particular in that it falls under the scope of European Directive 96/82 of December 9, 1996 for the control of major accident hazards involving dangerous substances. This so-called Seveso II directive was adopted into French law by the May 10, 2000 ministerial order on the prevention of major accidents. The Camp Caiman processing plant is therefore misnamed a Seveso site. As an indication, there are 1,100 Seveso industrial sites in France today, including 13 in the department of Guiana alone (reference 2003). The sites included in this category are considered at high risk for a major accident. The last accident at a Seveso site involved the TOTAL Groups AZF plant in Toulouse and killed 30 people on September 21, 2001. The facility involved in the explosion was an ammonium nitrate warehouse. The plant was old and located in an urban area. Management of technological risks at Camp Caman will be facilitated by the fact that the project is in a rural area without nearby residents. At least one facility at the Camp Caman project is subject to the rules governing Seveso sites. This is the cyanide storage facility, for which the level of constraints to be considered is higher due to the quantities of product being stored, which puts the project into the so-called high category. Depending on the final selections, the Camp Caiman explosives warehouse may qualify as a second Seveso facility. The specific contents of the danger study for the two Seveso facilities will be determined once the final project selections have been made. Once prepared and prior to being submitted to the state for review,

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the study contents is submitted to a third-party expert at the request of the classified installations inspection agency. The start-up of the operation will be subject to the establishment of financial guaranties for the installations that fall within the Seveso thresholds. During the operating phase, the mine must have a major accident prevention plan and a safety management system. The development and application of a Technological Risk Prevention Plan as provided for in law No. 2003-699 of July 20, 2003 on the prevention of technological risks and hazards and reparation of damages will have an impact on the project and the territorial development of the Roura commune.

15.3.2 Initiation of Mine Operations As in the case of the ICPE application, the application for the initiation of mine operations includes a danger study. While the texts (decree No. 95-696 of May 9, 1995) defining its contents may be less precise that in the case of the classified installations, the goals nonetheless remain the same. Constraints for mining facilities are not graded in accordance with the planned technical characteristics.

15.4 Tailings and Water Management The design of the tailings pond for the project is different from that of conventional tailings ponds. The tailings pulp from the mill is first treated in a detoxification plant to reduce the concentrations of cyanide and arsenic to within allowable limits. It is then thickened to over 58% solids by weight and deposited in confinement cells of about 25 hectares. This technique not only minimizes the risks associated with water management by reducing the watershed area as well as those associated with dam failure, it also reduces the operating storage area while increasing its effective capacity, and permits the gradual restoration of the entire tailings storage facility. Site Reconnaissance The site selected for the tailings facility is covered by dense, humid tropical forest type vegetation. It lies about one kilometre (km) from the foot of the south slope of Kaw Mountain, which rises to 300 metres (m) above a low-lying area with hills at altitudes of 25 to 80 metres separated by creeks and swamps at an elevation of 8 to 10 metres.

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The tailings facility site is bordered to the east by a NNW-SSE-oriented hill, and on the other three sides by a series of hills over 25 metres high. Given this configuration, these formations can serve as natural dams to contain the tailings. A low dam will extend the natural rise of the hill to the east of the facility. Other dams will be added to the low-lying areas to the north and south to complete the perimeter, as shown in Figure 15.3. These dams will range in height from 7 metres for dam G to the south, to 14 metres for dam B. There is a series of small isolated hills inside the facility with altitudes of 20 to 25 m. The tailings facility will have a watershed area of about 157 hectares. The tailings pond itself will cover 102 hectares, allowing for the storage of 13 million tonnes of tailings. No creeks flow through the tailings facility area. However, the facility is located at the heads of several streams, some of which flow northwest and discharge into the Grand Couacou creek to the north and some which flow southeast into either the Fourca-est-Parc creek to the east or a small tributary of the Mirt creek to the south. All these water streams ultimately flow into the Kounana River.

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15.5 Geotechnical Investigations

15.5.1 Drilling and Sampling

The basement conditions at the dam sites and under the foundation of the proposed tailings facility were tested by a drilling and sampling program using HQ-calibre drilling equipment available on site. The equipment used allowed natural soil samples to be collected continuously using standard core. The two programs consisted of the following work: Main investigation program (fall 2003 / winter 2004): drilling of 27 holes - F01-03 to F27-04 ; and Complementary investigation program (summer 2004): drilling of five complementary holes - F28-04 to F33-04. The location of the drill holes was selected based on the planned alignment of the dams and in order to test the conditions on the floor of the tailings site and the slopes of the mountain. Observation wells were installed at each of the drill sites. These wells were drilled to perform stationary water level surveys and carry out permeability tests once the drilling programs were completed.

The samples taken from the drill holes were visually characterized on site. They then underwent routine characterization testwork at the site laboratory. These tests included water content determination, grain size distribution analysis and Atterberg limit determination. Selected samples were shipped to a geotechnical laboratory in Canada for more complex characterization testwork, including shear strength testing inside a triaxial cell, and odometer compaction tests. Characterization of the tailings facility site was completed with a number of exploration trenches that also allowed examination and classification of the local soil. Like the drilling program, excavation of the exploration trenches was done in two stages. The two investigation programs included the following work:

Main investigation program (fall 2003 / winter 2004): excavation of eight exploration trenches - TP-1 to TP-8 and TP-15 to TP-26; and

Complementary investigation program (summer 2004): excavation of two complementary exploration trenches for characterization of the dam foundations - TP-27 and TP-28.

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The saprolite samples taken in the exploration trenches underwent water content determination tests and grain size distribution analysis at the field laboratory on site. Selected samples were sent to Canada for Proctor compaction testing, permeability testing inside a triaxial cell, dispersion testing and mineralogical assays.

15.5.2 Tailings Site Characterization

The basement of the tailings site consists of a thin laterite soil layer with a variable thickness. Based on sporadic data collected during drilling, the total thickness of the laterite soils and the saprolite can range from 19 to over 100 metres. The results of compaction tests on the fresh saprolite samples indicate an average compression index of 0.27 for a void ratio of about 0.93. Based on the laboratory testwork, the shear resistance parameters of the saprolite in situ, reworked and recompacted indicated an average effective friction angle of 31o and nil effective cohesion. The saprolite is the product of weathering of the in situ rock. For the tests performed, the line representing the shear resistance of undisturbed and reworked saprolite appears to go through the origin of the graph, indicating negligible cohesion. The results of tests done to determine water content indicate that the saprolite has an average water content of 36% in situ. It is classified as non-plastic based on the results of most of the Atterberg limit determination tests, which indicated an average possible plastic limit of about 41% and an average liquid limit of about 68%. The results of the Proctor tests indicate an optimal water content of between 23.4% and 27.7% for tests performed on samples from the tailings site, and of 22% for samples from the Scout pit area. It is therefore reasonable to assume that the saprolite to be used in construction should be on the high side of the optimum water content, and that its placement should allow efficient compacting and reworking. A size envelope for potential construction materials is shown in Figure 15.4, taking into account the grain size of the materials on which Proctor tests were performed.

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Project: Revision: Date:

03-1221-031-2000 0D Finale October 2004

Courbes granulomtriques - matriaux d'emprunt potentiels

100 90 80 70
%d ep a s s a n t

TP-4B TP-23F TP24B TP-25D Fuseau propos - saprolite Filtre propos

60 50 40 30 20 10 0 100

10

0,1
GRAINS (mm)

0,01

0,001

0,0001

P R O J E T C A M P C A IM A N

SAPROCK SIZE DISTRIBUTION


CURB SUMMARY

Figure 6.2

Figure 15.4

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15.5.3 Hydraulic Conductivity Test The hydraulic conductivity of the saprolite and the underlying rock mass was assessed using Lefranctype permeability tests. Rising- and falling-head tests consist of measuring the changes in water level as a function of the time required for the water level to return to equilibrium. Generally, the interpretation methodology for the Lafranc tests was developed for a saturated environment. However, a portion of the tests done at the tailings site were in an unsaturated environment. A specific work method consisting of saturating the area around the borehole collar before the test allowed testing to be carried out in almost all the holes. Hydraulic conductivity tests performed in the boreholes indicated very little variation between the interpreted hydraulic conductivity of the surface laterite soils and the saprolite. The mean hydraulic conductivities are in the order of 5.1 10-7 m/s for the surface laterite soils and 6.4 10-7 m/s for the underlying saprolite. In general, the variation between the data obtained is relatively small and cannot be associated with any given spatial trend. The typical hydraulic conductivity of the underlying rock is estimated to be in the order of 10-6 m/s. It should be noted that this value is lower than that obtained for the typical hydraulic conductivity of the loose material. However, the tests were performed in the upper part of the rock, which is likely the most altered and fractured. The hydraulic conductivity of the reworked, compacted saprolite was also measured in the laboratory. Tests were done on the minus 10 mm fraction of the selected samples, previously recompacted and tested in a triaxial cell. Five samples were tested in all. Four of five test results indicated a hydraulic conductivity of in the order of 10-10 m/s. These values are low, about three orders of magnitude lower than the permeability measured in situ.

Generally, the low permeability foundation of the tailings pond consists of a system of altered material consisting of a thin layer of laterite soil and a fairly thick layer of saprolite. The results obtained indicate that this foundation is of similar thickness and quality throughout the tailings facility area. The underlying basement rock has similar hydrogeological qualities as those of the loose soil.

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15.5.4 In-laboratory Testing Program According to borehole data, the water content of the surface laterite soil averages 38%, with a range of 15 to 86%. The saprolite immediately below the surface laterite layer has a water content that averages 36% and ranges from 7 to 76%. Atterberg limit determination tests were performed on saprolite samples. In most cases, the samples showed no plasticity. Grain size analysis was done on samples of surface laterite soil, as well as on saprolite samples taken at regular intervals in the exploration trenches and holes. Odometer compaction tests were done on five samples from holes drilled at the tailings facility site. The tests were performed on undisturbed samples, and the test results were used to estimate the potential for settling subsequent to dam construction. The in situ soils that could potentially be used as borrow materials were characterized using exploration trenches. Proctor Standard compaction and permeability tests were done on saprolite samples from the exploration trenches in case it could be used as a borrow material for tailings dam construction. Undrained triaxial tests (CU tests) to measure the pore pressure in undisturbed samples were done in the laboratory to obtain data on the shear strength of the in situ saprolite. These tests were also done on two reworked, recompacted saprolite samples from the Scout pit, which could be used as a borrow pit. Tests to assess the dispersion potential of the saprolite were performed in the laboratory. In all, five tests were conducted on samples from exploration trenches. These trenches were excavated to test the material from the tailings site as construction material. The results indicated that only some portions of the recompacted saprolite could have a slight dispersion potential. Mineralogical assays were performed on the minus 2 m size fraction of two saprolite samples using Xray diffraction analysis.

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15.6 Geological Model

15.6.1 Geological Characteristics of the Tailings Site The tailings site lies at the eastern edge of the Guiana Shield. The regional geology is part of a Paleoproterozoic volcano-sedimentary ensemble that includes both volcanogenic and sedimentary rocks, like those found in other gold mining camps of the Guiana Shield. Like all rocks in a humid tropical environment, the rocks of the tailings site are strongly weathered and altered to saprolite, to a maximum depth of 100 metres below surface. This saprolite is covered by tropical vegetation typical of marshy environments. The direct geological data on this area comes from 37 condemnation diamond drill holes (3,700 m) spaced at 400 m on five sections 400 m apart covering the entire area of the tailings facility. Additional geological information was also collected from over 29 geotechnical boreholes and 20 small trenches.

15.6.2 Local Stratigraphy The geology underlying the tailings site is relatively simple and homogeneous (Table 15.6). It consists of pelitic sedimentary rocks and much younger vertical dolerite dykes. The sedimentary rocks are the same as in the Scout zone, without the gold content. The geological contacts follow a sinuous line due to tectonic folding dating from the Trans-Amazonian orogenesis. The dolerite dykes strike north-northwest and intersect this sinuous mapping pattern. The sediments belong to the Armina Formation and were formed in a relatively calm marine environment on the shore of a volcanic island. They are essentially fine-grained, with thin zones of fine sandstone. Two pelite clast sandstone zones have been identified as marker zones (Table 15.6). The sediments are coarsely divided into a pelitic portion (FSa) and a silty portion (FSi). The contact between these two stratigraphic components is locally affected by shear zones, mainly in the western part of the site.

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Cells 1 and 3 are defined by a dolerite dyke on the west side of the pond. Everywhere else, the dams and berms sit on sedimentary formations and dolerite dykes. The dolerite dykes cut cleanly through the sediments, with vertical contacts. These dykes have the equigranular texture characteristic of intrusive rocks. Six dolerite dykes over 10 m thick were located by condemnation drilling, and there is a high likelihood of other dykes in the area.

15.6.3 Structure The sediments have been affected by two schistosities. The first is oriented NW-SE and dips SW most of the time. The second occurs mainly in the southern part of the tailings site, and is vertical and oriented NNW-SSE. This second schistosity is related to the regional folding that produced the curved line of the geological contacts of the various sedimentary units in the area. An anticlinal fold is therefore seen in the western section of the site, while a syncline passes under the eastern section. The dolerite dykes are not deformed. They are, however, affected by fractures and fissures of unknown frequency and orientation. These fissures and fractures are very likely limited to the dykes, not extending into the country rock.

15.6.4 Laterization The two rock units of the tailings pond site have primary characteristics that appear in lateritic environments as variations in the composition and thickness of the saprolite profile. Thus, the saprolite associated with the sediments averages 60 metres in thickness, while it is 35 metres thick for the widest dolerite dykes. The thickness of the saprolite seems to increase progressively toward the outside of the tailings site, mainly to the north and south of the site. The sedimentary saprolite is a clay-rich, somewhat sandy material, beige to grey in colour. The dolerite saprolite is a clay-rich material, red or brown in colour. Because of the clay content of the saprolite, most of the discontinuities in the original rock are blurred.

15.6.5 Tailings Impoundment Evaluation From a general perspective, no major structure that could cause tectonic movement or landslides was identified in the drill core from the tailings area foundation. However, the presence of structures between

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the condemnations holes drilled in the area cannot be ruled out. There is nothing to indicate that the stratigraphy and structures in this area would be any different from the rest of the tailings site. The geotechnical boreholes showed the relative homogeneity of the tailings area saprolite, which shows a permeability averaging 6.4 x 10-7 m/s. The permeability of this ground can be qualified as very low. The five geophysical profiles conducted over the tailings area did not reveal any major structures. A summary Landsat imagery study did not show any major structural lineament underlying the tailings pond area. However, it appears that a major lineament trending approximately east-west crosses the area just to the south. The tailings site rocks lie immediately south of the regional gold anomaly hosting the Scout and CC-88 pits and do not contain any significant mineralization. Only two holes intersected gold; these were drilled in the centre of the site and returned low grades over thicknesses of less than 3 metres. These grades were associated with quartz veins.

15.7 Natural Hazard Assessment

15.7.1 Flooding The project zone shows a broadly differentiated topography. From southeast to northwest, the topography consists of the Kounana alluvial zone, a line of hills oriented NW-SE, an intermediate terrace and finally the slopes of Kaw mountain, with dpartemental road No. 6 (CD 6) at its peak. The Kounana river elevation changes from 2 m of the Guiana geographic survey (Nivellement Gographique de la Guyane, or NGG) at the confluence with Grand Couacou creek, to 3 m NGG near the confluence with Mirt creek. The Kounana is subject to tides, seen in an influx of brackish water and tidal variations. The hills to the east of the Kounana crest at an altitude of 35 to 90 metres NGG, depending on the hill. The intermediate terrace between the line of hills and the foot of Kaw mountain ranges from an elevation of 6 m NGG at its low section to 10 m NGG at its high section, with very gentle gradients. Finally, further to the east, the abrupt slopes of Kaw mountain rise to its peak at 309 m NGG. The low-lying and gently-sloping areas are poorly drained and subject to flooding in the rainy season.

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Most significant is the Kounana river, whose major bed extends several hundred metres on either side of its minor bed. During flooding, the water reaches a high level (minimum) of about 4.10 m NGG (Dgrad Lalanne) based on the climatic event of April 13-14, 2000, but the station was subsequently flooded and the data could not be recorded. Based on visual reports by CBJ-Caiman S.A.S. technicians, the level is estimated to have exceeded 5 m NGG on May 17, 2000. As a measure, for some French Guiana communes (such as Matoury, 50 km from the project), the recurrence of the April 13-14, 2000 climatic event is estimated at greater than 100 years. The intermediate terrace is also an area that floods during the rainy season. The water is estimated to reach a high of about 9 m NGG in the area northwest of the tailings site. This estimate is based on the same climatic event of April 13-14, 2000. The Roura commune does not have a Hazard Prevention Plan (Plan de Prvention des Risques naturels, or PPR) for flooding. The only plan that exists in the dpartement is the one for Cayenne, which only covers the Cayenne, Rmire Montjoly and Matoury communes. Developed under the jurisdiction of the Prefect (prescribed by prefectorial order), these plans are annexed to urban planning documents, and regulate construction permit conditions through zoning.

15.7.2 Seismic Activity and Ground Motion The project area is rated as a Zone 0 based on the decree of May 14, 1991 on the prevention of seismic hazards. Zone 0 indicates negligible but not nil risk. The consequence of this rating is that PS92 paraseismic construction rules do not apply to the processing plant and tailings pond dams. The entire French national territory is legally divided into seismic zones: zone 0 (negligible but not nil seismicity), zone IA (very low but not negligible seismicity), zone IB (low seismicity), zone II (average seismicity) and zone III (strong seismicity). Guadeloupe and Martinique in the Antilles are considered zone III. No ground movement (slides, flows, rockfalls) has been recorded in the project area, except for a landslide slump zone along the initial path of the future access road from the RN2 (the roadpath has since been changed). Like flood hazards, the island of Cayenne is the only area of the department to have a PRN for ground motion. As is the case for the flood PRN, the resulting regulations have been annexed to the urban

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planning documents for the communes involved. Their purpose is to prevent accidents like Mont Cabassou, which claimed several lives when it destroyed an agro-food plant on April 19, 2000.

15.7.3 Lightning Thunderstorm activity can be characterized by the keraunic level, that is, by the number of days per year that thunder is heard at a given location. The keraunic level averages 20 in the metropolitan area and ranges from a low of 10 for the northwest section of the territory to 36 for the more exposed southeast. It is high (40) in the project area. A lightning hazard study will therefore be carried out for the high-risk facilities (fuel storage, explosives depot) in accordance with the January 28, 1993 order on the protection of certain classified installations against lightning. This study will then be annexed to the operating authorization application.

15.7.4 Cyclones French Guiana is outside the cyclone-prone zone. The maximum registered wind intensity is 70-80 km/h. These are therefore short-lived phenomenon, generally in the east / northeast area.

15.7.5 Forest Fires The Amazon region has seen very large forest fires, such as the 1998 fire in northern Brazil. There are often multiple causes of this natural phenomenon, but in this particular case, the scientific community attributed the fire to the after-effects of El Nino and the resulting dryness of the South American continent. Forest fires are unknown today in Guiana, with none ever recorded, including during 1998. Nevertheless, firebreaks with a minimum width of 50 m will be maintained around the high-risk facilities to prevent any forest fire from reaching such facilities.

15.7.6 Dam Failure In a conventional tailings pond, the tailings are deposited as a pulp with about 45% solids by weight. Such ponds require a specific dam design to retain not only the solids but also the supernatant water. In this case, one potential cause of accidents is the failure of one of the tailings pond dams. There can be many causes of such occurrences, such as foundation instability, internal disturbance or overtopping. The consequences can be the partial or complete destruction of the dam, and the propagation downstream from the breach of wave of water and finally a mud flow. The impact of such an accident depends on

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many factors, such as the height of the water in the pond at the time of failure, the volume of tailings remobilized by the breach, the physical-chemical characteristics of the tailings and the topographic, hydrological and climatic conditions downstream from the pond and at the moment of failure. In the case of this project, the tailings will be thickened to about 58% solids by weight. No water will be contained in the deposition area, which is divided into cells of about 25 hectares. The type of dam required to contain the thickened tailings in each cell is therefore much simpler in design. Their operating life is generally less than three years, including restoration. Tailings deposition is done in such a way as to avoid accumulation of runoff water along the dams and allow efficient flow to the settling pond. The 58% thickened tailings produce little or no seepage into the environment. For all these reasons, the thickened tailings deposition method as designed for the project will contribute greatly to minimizing the risk of dam failure. The internal erosion and overflow mechanisms are unlikely to occur with this storage method. Furthermore, the sensitivity of the environment downstream from the planned facility is low: the Kounana is only used for swimming and fishing, and the drinking water intake for Cayenne is more than 25 kilometres downstream from the project area.

15.8 Thickened Tailings Production The tailings thickening plant and the deposition system for the thickened tailings were designed by the world leader in this field, Golder-Pastec, a subsidiary of Golder & Associates, who also generated a complete profile of the paste, including erodability, friction during pumping and measurement of the deposition angle.

15.8.1 Location Two sites were considered for the location of the tailings thickening plant. The first was to the west of the grinding area, which has the advantage of being near the mill and therefore easy to monitor and supervise. However, this site required the use of a positive displacement pump, which increases the capital requirements very significantly. The second, and preferred, site is located immediately to the north of the tailings pond. This site had the best characteristics from an operating and capital cost perspective, for an equivalent operation. The reduced pumping distance for the thickened product allows the use of a centrifuge pump in lieu of a positive displacement pump.

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15.8.2 Design Criteria The main design criteria are outlined in Table 15.1.

Table 15.1 Thickened Tailings Design Criteria


Tailings production t/yr tpd Concentrator operation Tailings thickening plant operation h/yr d/yr d/wk h/d Tailings thickening plant availability Tailings thickening plant utilization Tailing production rate Tailing production rate (with availability and utilization) % % t/h t/h 1,825,000 5,000 8,760 365 7 24 95% 100% 208 219

Tailings production design (for equipment design)

t/d t/h

5,789 241.2

Saprolite tailings S.G. Saprolite/rock blend S.G. Feed in tailings % solids %

2.60 2.83 45%

15.8.3 Process Flowsheet The tailings are thickened using a Deep Cone Thickener to produce tailings with a density of 55-65% solids. A pump in the bottom of the cone recirculates the underflow to maintain the fluidity of the tailings and facilitate pumping. See plan 840-D-0101-OA in Figure 12.2.

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15.9 Thickened Tailings Pumping

15.9.1 Pumping System The tailings pumping system consists of three pumps in series for cells 1 and 2, and four pumps in series for cells 3, 4 and 5, for which the pumping distance is significantly greater. The pumps are centrifuge-type pumps with 200-HP motors. One pump per series is a variable-speed pump.

15.9.2 Piping The thickened tailings are pumped to the storage cells through 500 m of 300 mm diameter steel piping required due to the pumping power required to displace the paste. The second section is made of HDPE, with the length varying based on the deposition site and method (spigot, tower or end of pipe).

15.10 Management of Thickened Tailings

The study tailings deposition plan was developed to accommodate about 13 million tonnes of mine tailings with an expansion potential of at least 18 million tonnes. The tailings are produced at a production rate of 5,500 tonnes per day. The development plan was developed based on assumptions that are realistic in terms of the dry volume weight in situ of the thickened mine tailings and their true deposition angle. Tests were done in the laboratory using a scale flow model to determine these variables more precisely and to establish the influence of erosion on the overall behaviour of the tailings following deposition. The tailings deposition plan was developed using the QuickSurf program, an integrated volume modeling program that uses AutoCad software. For calculation purposes, the tailings pond dams were incorporated into the topography in three dimensions to obtain the required containment. Each cell was considered given its configuration for the appropriate development phase. The deposition plan assumes that the tailings are deposited using linear deposition in combination with a single point discharge at the end of the tailings pipeline or central deposition towers.

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Typically, linear deposition consists of discharging the tailings from a parallel line connected to the main tailings pipeline. The parallel line is equipped with several discharge points as shown in Figure 6.4 (a). This deposition method allows the creation of almost-linear beaches parallel to the main deposition pipeline. Deposition using single point discharge is aimed essentially at discharging all the tailings flow directly from the end of the main tailings pipeline. This single point discharge Figure 15.6 (b) can be moved regularly to obtain a tailings beach parallel to the dam axis. This approach will be used for cells 1 and 2. Deposition from central deposition towers is primarily used for thickened tailings. It consists of deposition from towers where the end of the pipe is gradually raised as the beach is created around the base of the tower. Figure 15.6 (c) shows this deposition method.

a)

Valves Point de dposition Conduite principale des rsidus

tang Plage Digue

b)
Plage tang

Dcharge active

Digue

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c)

Tailings Deposition Method a) Linear deposition b) Single point discharge (Steven Vick, 1993) c) Central tower (Phil Newman, 2003) Figure 15.6 15.10.1 Design Criteria A summary of the main design criteria for the thickened tailings deposition area is shown in Table 15.2. Some additional criteria were also defined for tailings management. The maximum height of the tailings should be about 1.0 m below the crest of the containment dams for linear or single point discharge deposition. Even if the freeboard seems small, we consider it adequate for this type of management. The primary purpose of the dams is not to retain water but to limit the extent of the tailings beaches. Surface runoff does not accumulate in the cells, and flows rapidly to the settling pond via spillways and ditches built for this purpose. Furthermore, once a cell is filled, it will be rapidly restored, and surface runoff will be directed into the environment as soon as discharge criteria have been met. The following section describes the typical stages in the life of a cell, from construction to closure.

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Table 15.2 Design Criteria


TAILINGS PRODUCTION
Ore reserves Mill availability Ore production annual daily Tailings/ore ratio Tailings production annual (nominal) daily (nominal) 0 - 5 years / >5 years total (mine life) Mine life 1.8250 Mt / 1.2045 Mt 5,000 tpd / 3,300 tpd 13 Mt (at 18.25 Mt) 8.3 years (at 12 years )
1 2

13.00 Mt ( at 18.25 Mt) 95%

1.825 Mt 5,000 tpd 1

PROCESS WATER
Pulp density at discharge point (% solids by weight) Volume of water in the pulp (design) Water recirculation (to the mill - design) Various sources of pond water Discharge period 58% (linear) 3,621 m /d 0 none 12 months
3

60% (towers) 3,333 m /d


3

TAILINGS PROPERTIES
Specific weight, sg Acid generating potential 2.6 None

DEPOSITION DENSITY AND VOLUME REQUIRED FOR THE POND


Average dry density of deposited tailings (beach) Volume required for the ponds 1.40 t/m
3 3 3

9.28 Mm (at 13.04 Mm )

WATER RETAINED IN THE DEPOSITED TAILINGS


Water content of saturated tailings, w (water mass/dry tailings mass) Volume retained 22% 1,100 m /d
3

NATURAL TAILINGS DEPOSITION SLOPES


Emerged and immersed For linear or end of pipeline deposition From central towers 2% 3%

1 2

The life is calculated assuming production of 3,300 tpd for the last two years when only the hard rock ore will be processed. The life in this case is presented as an indication only.

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15.10.2 Closure and Restoration Plan Based on results obtained in the laboratory, it appears that the tailings deposition slopes will be highly variable over the surface of each cell. The overall deposition slope for this type of fill is usually governed by the slope that develops due to subsidence and minor displacements on the surface of the paste as it attains its final in situ density. The average slope that could develop on the surface of the paste seen in the laboratory was estimated at about 7% to 11% for 58 to 60% solids. The design approach for the selection of the tailings slope was to use considerations allowing a conservative estimate of available storage volumes. Even if the results of laboratory testing showed that the beaches could have slopes of over 6%, a slope of 3% was used to develop the design flowsheet presented in this report. This 3% slope allows safe sizing of the confinement structures and a sufficient, conservative storage capacity. In fact, using a 3% slope reduces the available storage volumes. On the basis of tailings deposition conditions seen in cell 1, changes can be made to the deposition plan. Depending on the site conditions and our understanding of the mechanical behaviour of the thickened tailings, the beach slopes will never be less than 3%. This conservative approach is all the more justified as the mechanism for establishing a final tailings slope is, in our opinion, difficult to assess on the basis of scale laboratory testing alone. On a large scale, in the field, the materials could have the tendency to flow if overloaded by a tailings column according to residual unconsolidated tailings resistance parameters. This assumption could also be considered conservative as we know that the tailings have a tendency to consolidate quickly when exposed to the climatic conditions of this region. Thus, according to our assessment, it is preferable to use conservative final slopes of in the order of 3% to obtain a lower storage capacity resulting from the maximum spreading of the tailings. It is also important to note that a 3% deposition slope allows 13.00 Mt of tailings to be stored in the surface area proposed for the tailings deposition area. Depending on observations made when the first cell is filled, the total estimated quantity of tailings that can be stored in the proposed area could be revised upward. Erosion test results appear to indicate that the Camp Caiman tailings can be described as ranging from a low plasticity silt with some sand and traces of clay, to a sandy silt. This type of material is typically easily eroded, and, according to the laboratory study conclusions, the behaviour of the tailings with a residence time of five days is comparable to that of materials with similar characteristics presented in various publications. These results indicate that the erosion rate is directly proportional to the tailings deposition
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slope. It has also been observed that when the fresh tailings are subjected to the effects of a precipitation simulator, erosion rates are much higher. In order to take into account this variability in behaviour between the fresh tailings and tailings that have had time to consolidate and dry out, a deposition angle of in the order of 3% seems reasonable for the thickened tailings. The deposition study appears to indicate that this would be the minimum angle that could be obtained on site during actual deposition. A deposition angle of this order would also have the advantage of a lower erosion rate than for steeper slopes. The density of 1.4 t/m3 used for the study is based both on experience and on certain results obtained for actual tailings deposition at other mine sites in the same region. The density seems to be a reasonable estimate given the fact that the tailings are deposited in paste form, without segregation. Furthermore, based on observations in the laboratory, the dry density of the paste on the fifth day of deposition would be in the order of 1.31 t/m3. The available volumes are therefore better optimized compared to conventional tailings deposition (low percent solids).

15.10.3 Tailings Management The development of the deposition area was based on a cell management system aimed at minimizing the active footprint of the tailings facility. On the other hand, we are also aiming to maintain a single settling pond common to the various cells for as long as possible. Based on the operating criteria selected, the area of the active deposition cell for each development stage will typically be in the order of 25 ha. The major advantage of the cell approach is that it allows gradual restoration of inactive areas during operation. This approach can result in a reduction in the quantities of runoff water to be managed. As for gradual restoration, it is well recognized that this approach, when possible, is desirable as it allows the techniques to be adjusted and the work to be integrated into the sequence of operation. The development plan was optimized based on a 3% deposition angle for the central tower deposition model. The desired storage capacity (in terms of tonnes) for this phase of development of the deposition area is at least 13 Mt. Assuming a dry density of 1.4 t/m3 in situ, the storage capacity corresponds to about 9.3 Mm3. As previously discussed, this in situ density was estimated on the basis of the density used for the previous study and our experience with thickened saprolite tailings. The density of the thickened or paste tailings is generally higher than that of the tailings deposited using a traditional deposition method

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(low percent solids) as there is no particle segregation. As described earlier, the modeling of unfavourable deposition slopes allowed conservative planning of the expected 13.00 Mt of tailings volume storage.

15.10.4 Deposition Area Development The deposition plan for a 3% deposition angle was developed in several stages, as shown in Table 15.3. Generally, development of the deposition area should be achieved according to the filling of cells 1 to 5. The same settling pond can be used for cells 1 to 4. The first two development phases (phase A) of cells 1 and 2 consist of filling the cells with tailings thickened to about 56 to 58% solids. This type of deposition, which is from the north, east and west sides for cell 1 and the north and east sides for cell 2, allows better management of the storage volume and better filling of the pond bottom. Subsequently deposition is done from central towers, with the thickened tailings deposited at about 60% solids. Cell 3 will be filled from a tower only.

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Table 15.3

Main development phases Development phase Storage volume Mm3 1,715,135 677,803 1,429,216 589,262 1,924,859 A B 1,212,209 410,074 1,310,295 n/a Total n/a 9,268,853 Phase duration Month 15.8 6.2 13.2 5.4 17.7 16.9 5.7 18.3 n/a 99 mos Year From 0 To 1 yr/4 months 148 Reference plan No.

Cell

Active cell surface ha 25.4

Cell 1

A B A B

1 yr/4 months 1 yr/10 months 1 yr/10 months 3 years

Cell 2 Cell 3 Cell 4 Cell 5/Settling pond Auxiliary settling pond

20.7 16.5 19.6 12.5 7.6

3 years 3 yrs/5 months 3 yrs/5 months 4 yrs/10 mos

149 150 151 152

4 yrs/10 mos 6 yrs/4 months 6 yrs/4 months 6 yrs/8 months 6 yrs/8 months 8 yrs/3 months n/a 8 yrs/3 months1

1. The operating rate for the last two years will be 3,300 tpd.

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15.10.5 Fill Plan Discussion The proposed fill configuration allows good optimization of the available capacity, while maintaining a relatively small active surface. Filling of cells 1 and 2 should allow gradual checking of the typical tailings behaviour. The experience acquired with cells 1 and 2 will allow improved storage capacity and water management for the later cells. It is very important to note that the final operating phase for each cell is critical. The deposition model as shown in Figure 15.7 suggests that certain areas of the cell surface could become isolated, and that the water that collects there might not have access to the spillway. A number of channels and ditches will be created to direct such water to the spillways. However, these channels will only be required in later cell operating phases, not immediately. This problem might also be avoided altogether with very tight management of tailings deposition. Filling cell 1 will allow the design configuration to be adjusted for the conditions in the Camp Caiman area, and operating parameters to be optimized for later cells. Filling of the cells can also be optimized to a large extent by changing the percent solids in the paste. Once each cell is filled, the level of solids can be brought to close to 60%. Based on laboratory observations, this type of paste can lead to relatively high complementary volumes. Such adjustment and optimization should be performed at the end of the operation of each cell so as to minimize erosion, which can be considerable with steeper deposition slopes. It should also be noted that the proposed deposition configuration assumes the use of a minimum number of towers. Depending on the conditions seen during the development of the initial cells, adjustments may be required on this level. Restoration work is also planned immediately following the end of operation of each cell. A transition period may be required to restore each cell of the system. However, this should be sufficiently short to limit the quantities of water to be managed in the settling pond.

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15.10.6 Typical Stages in Cell Life The following is a general description of cell development, from construction to closure. It should be noted that the length of cell life depends on its size and the production rate. The length of each stage is an approximation and is provided only as an indication of chronology. Stage 1: typically lasts 1 year. Clearing of the surface area of the containment cell. The cut wood and vegetation will be left in place for about 1 year to promote decay and the formation of seed-rich organic matter. Stage 2: typically lasts 0 to 5 months: Creation of the containment cell. This process begins with the cleaning of each cell area. The matter resulting from clearing and the organic-rich earth must be pushed to the side and kept for later use on closure. Dam and berm construction will then begin, while ensuring that the cell remains drained for as long as possible. Stage 3: typically lasts 1.5 to 2 years: Tailings deposition. Once the contour dam and berms have been built, tailings deposition can begin. In the case of cell 3 and later cell 5, deposition will take place solely using deposition towers. Deposition will take place over a period of about 18 months for each of these cells. For cell 4, an end point deposition method will be used, and deposition will take place over a period of about 23 months. Cells 4 and 5 are the last to be used. During tailings deposition, ditches will be built wherever necessary to allow proper drainage of surface runoff and eliminate any undesirable accumulation points. For most of the life of a cell, partial settling of particles in suspension resulting from erosion will take place in the cell itself, without ever reaching the settling pond. Particle settling is only expected to take place entirely in the settling pond only in the last few months of operation of the cell, when available retention volumes in the cell are reduced to a minimum. Stage 4: typically lasts about 6 months: Gradual restoration. This consists of performing the work required to establish surface flow into the environment. To achieve this, any depression likely to collect water must be filled. Then, organic-rich earth as well as organic matter from initial clearing of

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the cell will be spread on tailings to provide a substrate on which to revegetate the surface. Other methods such as amending the tailings by adding fertilizer can also help promote revegetation. Once a cell has been revegetated, it will be monitored. Some follow-up could be required to control erosion of the tailings and ensure that suspended matter in the surface water meets allowable limits. When water flowing on the surface of the tailings meets the criteria, the contour dams could be levelled and/or breached, and channels could be opened. These operations would allow natural flow into the environment.

15.11 Dam Design

15.11.1 General The proposed design for cell containment dam and berm construction is based on our understanding of the site conditions, availability of construction materials and the economic and physical characteristics of the project. The final design may require changes to reflect any information resulting from periodic revisions, collection of additional data and any other information that might improve the performance of the structures. Certain construction quality program requirements may also entail changes to the design. The construction stages depend in large part on the capacity of each cell and the operating conditions of the deposition area. Furthermore, it must be recognized that construction can only take place during four or five months of the year.

15.11.2 Design Criteria Most of the dams and berms will be built in a single phase, as shown in Table 15.4. The proposed development consists of using the same settling pond while at the same time trying to optimize cell filling. The water in the tailings pond does not present an environmental problem, and can be discharged into the environment without particular treatment following settling of the suspended particles. It is also important to mention that the height of the dams and berms does not exceed 14.0 m in any of the cells. As mentioned previously, the primary function of the dams is to contain the tailings by limiting their extent. However, the cells allow a significant quantity of water to be stored during the first months of deposition, and the dams are therefore designed for the maximum water level that could be obtained in the cells. However, it must be remembered that the cell containment dams have a short operating life
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(generally less that 3 years, including restoration). Furthermore, tailings deposition is done quickly so as to prevent free water from accumulating for prolonged periods against the dams. This being said, the operating spillways and drainage ditches will be built so as to allow efficient flow to the settling ponds. Once the cells are filled, the surface will be restored and a permanent drainage system will be established. Ditches and spillways may require cleaning if too much erosion occurs, and will be monitored to this effect.

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Table 15.4 Principal Characteristics of the Dams and Berms


Ref. plan No. 154 Core elevation (m) Crest elevation (m) Process water level (m) Comments

Cell

Structure

Dam F Berm 3 Settling pond Berm 4 Berm 5 Berm 6 Dam A Berm 1 Cell 1 Berm 2 Berm 3 Aux. Berm 1 Aux. Berm 2 Dam B Cell 2 Dam D Berm 4 Aux. Berm 2 Dam C Cell 3 Berm 1 Berm 2 Dam E Berm 5 Cell 4 Berm 6 Aux. Berm 3 Aux. Berm 4 Dam F Berm 3 Cell 5 (Settling Berm 4 pond) Berm 5 Berm 6 Option 1 Auxiliary settling pond Dam E Dam F Dam G

17.5 17.5

18.0 18.0 18.0 18.0 18.0 21.0 18.0 18.0 18.0 21.0. 21.0 21.0 18.0 18.0 n.a. 21.0 18.0 18.0 18.0 18.0 18.0 22.0 n.a 18.0 18.0 18.0 18.0 18.0 18.0 18.0 16.0
Dam C could be built in stages Dam B could be built in stages Dam A could be built in stages

155

17.5 17.5 17.5

15.0

153

20.5 17.5

155

17.5 17.5

16.5

n.a. n.a. 153 153 155 n.a. 153 155 153 155 n.a. n.a. 154

n.a. n.a. 20.5 17.5 17.5 21.0 20.5 17.5 17.5 17.5 17.5 17.5 n.a. n.a. 17.5 17.5

16.5

16.5

16.5

155

17.5 17.5 17.5

16.5

153 154

17.5 17.5 15.5

14.5

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15.11.3 Details and Comments Dams A, B and C: Contour dams for cells 1, 2 and 3. The proposed development plan provides for dams A, B and C to be built to the same elevation of 21.0 metres in accordance with the cell fill sequence. As the water level in the cells is regulated by berm height, these dams will be exposed to moderate water pressures. Dam D: Cell 2 contour dam. It will have a crest elevation of 18.0 m. Dam E: Cell 4 contour dam. It will have a crest elevation of 18.0 m. Berms 1 and 2: berms between cells 1 and 3. These two berms will be built to a height of 18.0 m. Dam F and berms 3, 4, 5 and 6: Main settling pond contour dams and berms. Dam F is also the main discharge during operation of cells 1, 2, 3 and 4. Dam F and berms 3, 4, 5 and 6 should be built to a height of 18.0 m. Dam G: Complimentary dam that serves to contain the auxiliary settling pond. This dam will be built to a height of 16.0 m. It should be noted that experience acquired during the operation of cells 1 to 3 should allow the height of dam G to be optimized depending on ground conditions. 15.11.4 Geometry and Materials The structures (dams and berms) are typically built of rehandled, compacted saprolite. The crest of the main dams (A, B and C) will be 10.0 m wide, and the saprolite core will be 7.0 m wide. Dams D, E, F and G and berms 1 to 6 will have a 6.0 m wide crest and a 4.5 m wide saprolite core. The dams will be equipped with a continuous blanket drain, 500-mm thick by about 3.5 m wide in the case of dams D, E, F, and G, or 7.0 m wide for dams A, B and C. The blanket drains should be installed at the base of the valleys, where the hydraulic pressures and flows are greatest. The blanket drain is not required on the mountain slopes. It should be noted that the thickness of the blanket drain was optimized based on numeric calculations. Dams A, B, C, D and E and berms 1 to 4 have slopes of 2H:1V (about 26.5o from horizontal), while the other structures will have an upstream slopes of 2.5H:1V (about 21.8o from horizontal). All the downstream slopes will be at 2.5H:1V. Rock layers of varying thickness will be placed on most of the structure surfaces to protect the body of the dam and help stabilize the structures. In our opinion, the dam A, B and C starter dams do not require

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upstream protection, as this portion of the dams should be covered by the tailings very early. The portions most likely to be exposed to erosion should be protected by a layer of rip-rap. The detailed proposed geometry for the dams and berms are shown at the end of this section. The saprolite will come from the Scout pit. Based on preliminary investigation, the rock does not appear to outcrop in any of the areas investigated. The specific geotechnical characteristics of the rock will be assessed should it be exposed during construction.

15.11.5 Settlement The dam foundations are made of saprolite, a compressible material, and minor foundation settlements can be expected to develop under the weight of the dams and tailings. The compacted saprolite fill is also somewhat compressible. In laboratory testing, the results of which are included in the October 2004 report (ref.: Golder Associates 2004), the foundation saprolite shows a wide range of compression characteristics. Furthermore, variable thicknesses of the saprolite exist beneath the dams.

Maximum settlement under the weight of the dams is expected to be in the order of 0.5 to 1.0 m. The differential settlements are expected to be of a magnitude similar to the total settlements. Generally speaking, the fills should be placed at water contents that are above the laboratory optimum water content. This enhances the ability of the saprolite to deform plastically and reduces the propensity for cracking when distortions occur as a result of differential foundation settlements. When crest slumping appears due to settling, it is important to correct the situation promptly by making repairs and adding the material required to restore the initial crest elevations. It should be noted that this type of work could be required often, and that it should be done rigorously so as not to impede mining activities.

15.11.6 Stability The parameters of resistance in the cutting chosen within the framework of this present study are the same that those presented already in our previous study (ref. Golder Associs, on 2004). The minimum factor of safety selected is 1.4 for the static analysis and 1.1 for the pseudo-static analysis.

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The dam stability analyses were performed in static conditions and pseudo-static conditions for slippage of the upstream slopes. Furthermore, in the unlikely event that a breach develops in a dam or berm around the settling pond, this would result in the rapid emptying of the pond. A static stability analysis on a typical case was generated to take into account the possibility of the settling pond emptying rapidly. In this case, the desired factor of safety is 1.0 given the fact that it is a condition of very short duration, and that the consequences of the settling pond emptying rapidly, namely the loss of tailings containment, are limited to the settling pond area. The analyses were performed for the final dam configuration. The position of the water table was taken into account as estimated based on the hydraulic model analyzed using SEEP/W. The static and pseudo-static stability analyses were performed using conventional equilibrium methods to assess the geotechnical stability of the dams and berms in the tailings deposition area. All the stability analyses were done using Slope/W commercial software developed by Geo-Slope and using the Morgenstern-Price method, which satisfies both force and moment equilibrium. For all analyses, the factor of safety was calculated for several trial slip surfaces in order to determine the minimum factor of safety. The factor of safety is defined as the ratio of the stabilizing forces to the driving forces that tend to cause slip. For each structure, the analysis was done on a representative cross-section for the highest part of the dam or berm, combined with a foundation stratigraphy corresponding to the results of drilling in the given area.

A review of the available data on the seismicity of the area indicates that French Guiana is in a lowactivity zone (ref.: Golder Associs. 2004). The country lies in a zone where the seismic acceleration, typically represented in terms of a fraction of ground acceleration, g, ranges from 0 to 0.05 g, for a probability of exceedance of about 1 in 500 years. A coefficient of 0.025 g was included in the calculations to account for the possible effects of a seismic solicitation. The safety factors obtained for all the dams and berms meet the minimum factors of safety required for static and pseudo-static analyses. In the case of rapid failure, the factors of safety obtained are in the order of 1.0. However, this is a temporary condition with a very short duration and very low probability given the management method associated with this system.

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15.11.7 Fill Volumes Preliminary construction volumes were determined based on the site topography and typical dam provides a summary of fill volumes. The estimates shown in Table 15.5 do not include the stripping volumes that may be required, particularly at the base of the valleys.

Table 15.5 Estimated fill quantities (m) Saprolite m3 182,868 118,632 140,223 31,464 33,316 40,597 31,057 32,535 22,293 34,343 88,688 16,800 22,848 795,664 Rock m3 16,262 10,458 12,179 5,425 6,702 6,284 4,807 2,318 1,588 2,447 6,318 2,575 3,502 80,865 Filter m3 1,370 908 1,107 383 389 414 350 n/a n/a n/a n/a n/a n/a 4,921 Rolling surface m3 2,266 1,502 1,832 651 662 704 595 562 435 616 1,425 308 450 12,008 Geotextile m 23,896 15,834 19,314 6,231 6,237 6,231 5,270 3,720 2,880 4,080 9,432 3,698 5,394 112,217

Dam/Berm Dam A Dam B Dam C Dam D Dam E Dam F Dam G Berm 1 Berm 2 Berm 3 Berm 4 Berm 5 Berm 6 Total quantities

The saprolite will be excavated directly from the Scout pit area. The filter crushed rock (20 mm) will come directly from mining the pits. The characteristics of the fill material may be modified once they have been assessed in the field.

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15.11.8 Instrumentation

Measurement instruments will be installed to permit monitoring of the main dams during the construction and operation of the tailings facility. This instrumentation includes: Vibrating wire piezometers to measure pore water pressures in the saprolite fill and foundations. Settlement gauges to measure vertical deflections based on foundation condition. Observation wells to permit measurement of groundwater levels and the quality of seepage water migrating through the main dams.

15.12 Tailings Characteristics Numerous statistical tests were carried out to determine the acid base accounting (ABA) of the various materials to be mined at Camp Caiman. A total of 128 soil, transition, saprolite and hard rock samples from the CC-08, CC-88 and Scout zones were subjected to this classic method of determining acidgenerating potential. The results obtained for the samples of materials to be mined from the pits, including the ore to be processed at the mill, indicate no significant acid-generating potential. Kinetic tests in wet cells confirmed these conclusions.

15.13 Closure of the Thickened Tailings Deposition Area

15.13.1 General The goals of the closure of the deposition area are to minimize erosion and the loss of tailings, and to return the areas to a state that approximates the natural environment to the extent possible.

15.13.2 Cell Closure The proposed concept provides for the restoration of each cell to begin as soon as operation ends. Minor surface work such as filling of certain areas will likely be required, as well as the creation of wide channels for runoff water. The cells could then be rapidly revegetated.

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On of the major advantages of using thickened tailings in cells is that it permits gradual restoration. Work and trials done on cell 1 should allow subsequent work to be optimized. Furthermore, the fact that cells will be closed while the mine is in operation should allow the proposed strategy to be assessed, along with the environmental gains, and future work to be adjusted. The dams have been designed as structures for retaining saturated tailings. They can also retain water for short periods early in the cell life. Throughout the operation of the cell, the beaches should be built to generate a configuration that permits adequate drainage and the possibility of redirecting flows into the environment rather than to the settling pond. Once the site operation is ended and all the necessary checks have been performed, dam G, which acts as the drainage to the environment, can be removed. Figure 15.8 shows the state of the thickened tailings deposition area once the cells and settling pond have been restored and the entire area has been revegetated.

15.13.3 Spillways The operating spillways of the cells and settling pond are temporary structures. No spillway should be required at the end of the operating life of the deposition area. The planned method of closing the site is the revegetation and restoration of the areas in a form that permits integration into the surrounding area. No major water accumulation is anticipated on the surface of the deposition area. The settling pond could be kept in operation during the test period required for the full site restoration. We feel that its operating spillway should be adequate to fulfill this temporary role.

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0 metres

500

Revegetation Water Runoff

Cell #1 Cell #2

Settling Pond / Cell #5 Cell #3 Settling Pond (auxiliary) Cell #4

Deposition Area and Flow of Surface Water after Restoration

Figure 15.8

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15.14 Mine Tailings Purification Plant

15.14.1 Cyanide Detoxification A cyanide detoxification system will be installed between the CIP tailings and the tailing thickening plant to reduce the level of CNwad to close to the allowable final discharge limit. The tailings pond dilution capacity will further reduce any remaining measurable CNwad, ensuring that the final effluent meets discharge limits. The SO2/Air process selected for cyanide detoxification has been used for many years in gold recovery plants, and has proved very effective for slurry tailings. This process was selected on the basis of testing performed on Camp Caiman ore samples by INCO technical personnel in 1999 and by SGS Lakefield Research in 2004. The INCO trials were performed on oxide ore only, while the SGS Lakefield tests were done on both sulfide and oxide ores. All these tests produced positive results, showing that CNwad levels could easily be reduced to 2 mg/l. The standard of 0.1 mg/L CNwad for the pond effluent will be attained through natural degradation. The cyanide detoxification circuit consists of a thickener, an agitated reactor, associated pumps and piping and the compressed air and reagent feed system. The CIP tailings discharge by gravity through a carbon safety screen into a 28-m diameter thickener. The thickener causes the solids to settle to allow recovery of the cyanide in solution for re-use at the head of the grinding circuit as well as control of the density of the reactor feed slurry. The slurry is pumped from the thickener underflow to the reactor at 40-45% solids. Sodium metabisulfite and copper sulfate, both put into solution in the reagent mixing area, are dosed to the reactor, and compressed air produced by the leach circuit air compressors is injected into the bottom of the reactor. These elements combined cause the cyanide (CN) to oxidize into cyanate (OCN), liberating complex metals that precipitate out as metallic hydroxides. The reactor is sized to allow a 60-minute retention time at the maximum mill design capacity. The reaction is produced naturally at a pH of between 8 and 9, and the lime is added to neutralize the acidity (H+) formed in the process and to maintain the pH at this level. It is important to dose the copper sulphate properly so as to obtain a Cu
+ 2

of 10 to 50 mg/l. This acts as a reaction catalyst. This process lends

itself well to pulps containing moderately high levels of cyanide of between 1 and 5 mg/l at the outlet. In our case, we are aiming for 1 mg/l with a maximum of 2 mg/l.

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Table 15.6 shows the results of cyanide detoxification testwork performed on the Camp Caiman ore samples.

Table 15.6
SUMMARY OF CYANIDE DETOXIFICATION (SO2/AIR) TESTWORK
INCO Oxide ore (1999) Test 1 CNwad feed (mg/l) Retention time (minutes) CNwad produced (mg/l) 37 32 0.33 Test 2 110 64 0.60 Test 3 106 64 0.40 Test 4 85 33 0.42 SGS Oxide ore (2004) Test 1 112 32 1.30 Test 2 112 31 1.00 Test 3 112 42 0.40 SGS Sulfide ore (2004) Test 1 200 61 0.20 Test 2 200 60 0.10 Test 3 200 60 0.20 Test 4 200 60 0.40

15.14.2 . Arsenic Precipitation From the cyanide oxidation reactor, the pulp is sent to a second tank where ferric sulphate is added to precipitate the residual arsenic in the solution. The arsenic precipitates out as ferric arsenate. In order to promote the stability of the precipitates, the iron:arsenic ratio is kept above 8. Precipitation of arsenic in the form of ferric arsenate using ferric sulphate generates much more stable precipitates than precipitation using lime to form calcium arsenates. The pH is kept at about 8 by the additional of lime to neutralize the acidity that develops during the reaction. The grade of arsenic in the precipitation tank oscillates around 0.3 mg/l. The final concentrations are less than 0.01 mg/l. The allowable limit for the final effluent is 0.05 mg/l.

15.14.3 Detoxification Plant Control At the first tank used for cyanide oxidation, the stability of the reaction will be assured by controlling pH, sodium metabisulfite and copper sulphate dosage. This will also maintain treatment performance. At the second tank, where arsenic is precipitated out, the planned concentration level will be achieved through the control of pH and ferric sulphate dosage to maintain the Fe:As ration above 8. At the outlet of the second reactor, the pulp is pumped into a third reservoir where the reactions are completed and the pulp is homogenized. This third thank serves as a quality control point before pumping the pulp to the thickening plant and then to a deposition cell, for permanent storage. Control is carried by

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two tests: one for CNwad and the other for arsenic. As soon as one level or the other exceeds the limit required for the performance of the two purification reactors, the pulp is sent to a temporary storage tank with a storage capacity of 10 to 12 hours, or 3,222 m3 bypassing the reactor in this way permits the interrupted cyanide oxidation reaction to resume. After about an hour, the pulp is reintroduced, and any non-performing pulp is removed. The purification plant has 35% excess capacity to allow rapid retreatment of any pulp that might have accumulated. This configuration means that the mine tailings purification plant can always operate in treatment conditions that comply with performance.

15.15 Tailings Pumping

15.15.1 Pumping System The tailings from the purification plant are sent to a tailings pump box. From there, they are pumped to the tailings thickening plant near the tailings pond by two slurry pumps installed in series. One of the pumps is equipped with a variable speed control to ensure that the pumped flow corresponds to the mill discharge flow. A parallel series with the same characteristics is installed to allow maintenance of the components and ensure continuous process operation.

15.15.2 Piping The tailings pipeline is nearly 2.7 km long, extending from the pumps to the tailings thickening plant. Piping consists of a HDPE high density polyethylene line fused together to minimize the risk of leaks. The tailings pipeline is installed in a 1 m ditch that will contain the tailings in case the line ruptures. This ditch opens in two places into an 8 m wide area that serves as a catch basin. The ditch slopes in such a way that flows are directed to these basins. The instrumentation installed on the line shuts down the upstream pumps in case of a break in the line. Any tailings that collect in the catch basin are recovered using a shovel and truck and transported to the tailings pond.

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15.16 Water Balance During the operating phase of the Camp Caiman project, the main potential impacts on the water are related to process and service water consumption, the final effluent discharge and drinking water consumption at the processing plant. A detailed assessment of the impact of the hydraulic facilities on the Fourca West and East creeks and the Mirt creek is part of the environmental impact study, along with other potential (secondary) impacts, including the drainage from the protection ditches above the open pits and rainwater runoff at the processing plant.

There is a water management plan for the entire Camp Caiman project, including the classified installations (mainly the processing plant and tailings facility) and the mining facilities (pits and dumps). In the flowsheet, potential sources of impact are associated with the classified installations (final effluent discharge, use of drinking water) or mining facilities (runoff water from the two dumps). In some cases, the source of the impacts can involve two categories of installations (as in the re-use of pit dewatering water). Figure 15.9 shows the water management flowsheet for the operating phase.

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Incident Rainfall and Run-off

5 917

Evaporation

351

East Waste Dump (run-off)

5 021

Exfiltration

24

Incident Rainfall and Run-off

Evaporation 2 184 95

Effluent

5 021

5 021
Settling pond

Tailings

3 983

3 983 8 315
Exfiltration

Effluent

15 644 9

Effluent

76

Thickened Tailings 1210

Thickened Tailings Plant Eau Settling Pond

Treatment

76

Scout & C-88 Pits

Thickened Tailings Cells Mill Feed Pond Processing Mill and DTU Make-up 880
Ore Moisture

6 720

2 737
6 720

13 132

AEP

76

20 178 20 178 766


Mill and Emergency Pond Incedent Rainfall

Towards Fourca

Incident Rainfall Orapu Aquifer and Bench Seepage Pumping

9 544 880
Final Effluent

11 250

Effluent

2 838

Emergency Pond

PROJET CAM P CAIM AN

Camp Caiman Water Balance

Towards Fourca

Settling Pond

2 838

West Waste Dump (run-off)

2 838

13 132

Unit = m /day PWS= Potable Water Supply

Figure 15.9

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15.16.1 Process and Service Water The project does not require water drawn directly from the river. Water from pit dewatering will provide the process and service water required for the processing plant. The average annual water intake is (6,720 m3/d) to process the saprolite ore. The estimate for the runoff water volumes corresponds to the later years of operation, when the pit surface will cover the maximum planned area of 94 ha (Scout pit: 50 ha, CC-88 pit: 44 ha). Table 15.7 shows a breakdown of the flow (maximum, minimum and average) recovered from each open pit in a year of average rainfall.

Table 15.7 Estimate of volumes of water from runoff and seepage Flows from the open pits (m3/d) Scout Maximum flow (May) Minimum flow (October) Average flow 7,429 932 3,849 CC-88 21,436 13,281 16,869

Note: This estimate does not include runoff from the upper sections covered by forest.

The final configuration of the thickened tailings deposition area with its five cells and their respective water shed areas will occupy a total of 157.2 hectares. However, the maximum active surface area will be 78.9 hectares. This will occur in Year 3 of the operation, when cell 2 receives the thickened tailings and cell 1 is undergoing restoration. The five cells are designed to store 13 million of tailings over the life of the operation, currently estimated at 6 years and 10 months. It should be noted that water from the deposition area settling pond will be recirculated to the mill for the first two years of operation. In fact, water pumped from the pits during the first two years is below requirements. Over the course of a year, the volume discharged by the facility corresponds to the water intake (rainfall over the deposition area, runoff from the forest area, liquid portion of the tailings) less any losses (evaporation over the deposition area, evapotranspiration from the forest area, seepage).

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At an average production rate of 5,500 tpd, the tailings from mineral processing will provide an estimated 6,720 m3/d of water. Based on the average annual rainfall (3 984 mm), inflow to the deposition area from rainfall and runoff is estimated at 8,101 m3/d, or 2.95 Mm3/yr. Losses are from rainfall-related evaporation and evapotranspiration, seepage through the dams and the fraction of water retained in the tailings pores. Losses from percolation in the natural geological substratum of the tailings facility have not been taken into account. Based again on an average annual rainfall, losses by evaporation and evapotranspiration amount to about 446 m3/d. Seepage under the dams is estimated at 33 m3/d. Finally, about 1,210 m3/d of water will be retained in the pores. The total volume of losses is therefore estimated at about 1,689 m3/d (rounded), or 0.62 Mm3/yr.

15.16.2 Reclaim Water Water from the tailings deposition area will be recirculated to the mill during the first two years of operation.

15.16.3 Drinking Water Drinking water consumption is estimated at 76 m3/d for the entire project. Potable water will be sourced from the the Orapu.

15.16.4 Pit Dewatering Water Pit dewatering consists of runoff water from rainfall plus groundwater inflow from the walls of the open pits. The volume of water that will drain into the pit from the Orapu Aquifer was established by hydrogeological study. Pit water is sent to a settling pond that supplies the process and service water. The settling pond is located southeast of the processing plant. It is also used as a reservoir for fire protection. Overflow from the pond is discharged to the Fourca Ouest creek.

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15.16.5 Runoff Runoff and seepage from the east waste dump (coverage: 42.3 ha) and west waste dump (coverage: 26.9 ha) consists of rainfall over the area of the two facilities as well as the water content of the material trucked from the open pits. The water content of the waste is insignificant compared to rainfall component. The estimate of the runoff flow was based on an assumed runoff coefficient of 100%, meaning that 100% of the rainfall (3,984 mm/year) feeds the runoff and the seepage from the two facilities. Finally, it is assumed that, given the characteristics of the facility (slopes, nature of materials), runoff is instantaneous (no time lag between rainfall and runoff flow). Table 15.8 shows the estimated flow from the dumps.

Table 15.8 Estimate of Runoff and Seepage Water Volumes from the Waste Dumps Flow From Waste Dumps (m3/d) West dump Maximum flow (June) Minimum flow (October) Average monthly flow 5,710 616 2,715 East dump 8,979 969 4,269

15.16.6 Final Effluent The final effluent is discharged from the settling pond at the tailings deposition area. The final effluent corresponds to the volume of inflow (process water, water from rainfall, water from runoff) less losses (from evaporation, evapotranspiration, dam seepage). Final effluent is discharged year-round (without monthly interruptions) in the direction of the Mirt creek. The final effluent is discharged through an operation spillway located at the outlet of the settling pond. The flow varies depending on the season and the surface of the cells contributing to the drainage. Based on an average annual rainfall and the average operating parameters for the processing plant, the volume of effluent discharged daily is estimated at 13,132 m3. The average intra-annual variations are large, given the alternating rainy and dry seasons and the large amount of rainfall seen in this area of

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French Guiana. The largest volume discharged occurs during the months of April, May and June (highest rainfall is in May), and amounts to 21,846 m3/d. The final discharge is smallest during the months of September to December (lowest rainfall is in October), at 5,126 m3/d. Discharge is relatively large during the months of January to March, at 15,078 m3/d. The water from processing is treated in the INCO reactor at the outlet of the plant. This station lowers the cyanide content so that the effluent meets regulatory standards. For cyanide content, the parameter used is the weak acid dissociable cyanide (CNwad). Again for the same climatic conditions and operating parameters, the volume of water present in the settling pond vaqries from 87,809 m3 to 194,383 m3 during the year, indicating large monthly variations. The destination of the final effluent is a tributary creek of the Mirt and then the Mirt itself (39.6 km watershed area), whose flows are the highest of all waterways surrounding the tailings facility. The reference flow of the Mirt at the outlet of the facility is estimated at 8,554 m3/d.

15.16.7 Operating Costs The operating costs for the cyanide destruction, arsenic precipitation and tailings thickening plant are included in the milling costs, and represent $0.74/t over the life of the mine.

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16.0 CONSTRUCTION SCHEDULE AND MANAGEMENT

16.1 Management Methodology Cambior has its own construction team. The Projects and Construction (PC) group provides project management services and acts as project manager and general contractor for all the companys major projects. This formula, which has worked well to date, is also being applied at Camp Caiman. A manager assigned to the project is responsible for most of the project activities, including engineering, equipment and materials purchasing and delivery, on-site construction management, workplace health and safety, quality control and finally, mill start-up. Certain specific construction tasks are overseen by the operations team. This team is responsible for mining and mill operation once the work is complete. This group oversees all earthwork requiring heavy equipment bought for the mining operation.

16.2 Engineering Project engineering has several aspects. The Camp Caiman project engineering team includes an

architect and an independent group that ensures compliance with French standards.

16.2.1 Road Engineering A French Guiana firm will do the engineering for the access roads, with another local firm providing the engineering for the wooden bridges.

16.2.2 Infrastructure Engineering The project facilities will be designed directly by Cambior engineers. The services of a local architect will be retained in order to follow French regulations and ensure compliance. Subcontracted engineers will be hired for specific activities. The infrastructure is considered

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to include the following site preparation work, as well as all buildings other than those required for mineral processing: Main project power supply; Administrative buildings; Mechanical shop and warehouse; Municipal works such as drinking water and sewage; Computer system and communications. It is also foreseen that at the end the exploitation of each of the cells, the works of restoration will begin. It is possible that a period of transition is required before being able to restore each of the cells of the system. However, this should be short enough to limit the quantities of water to manage in the tailing pond. The engineering of the concentrating mill for the ore requires the services of a firm of multidisciplinary engineers specialized in the treatment of the ore. Local architect participates in the architectural works, particularly the buildings.

16.2.3 Geotechnical Engineering A specialized firm is responsible for the geotechnical work. The firm retained for this project also carried out the same work for Cambiors other projects in the Guiana Shield.

16.2.4 Electrical and Automation Engineering The Camp Caiman project is highly automated. Automation is supervised by Cambiors technicians, who have good experience with the companys various mills. The team will also include other participants with expertise in this field.

16.3 Procurement Procurement-related activities are carried out from three locations. The three groups have access to data through the project management computer system.

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16.3.1 Longueuil Administrative Office All calls for tender for process equipment, structural steel, leach carbon tanks and major electrical appliances will be prepared by the engineering firms. These consultants will check the bids against the technical specifications, participate in all meetings before and after the bids, prepare recommendations and finally, approve the plans.

16.3.2 Houston Purchasing Department Houston will take care of all the logistics for shipping from North America to French Guiana. Houston will also be responsible for materials supply (pipes, cables and electrical appliances, cable trays and accessories) and architectural supplies not available in French Guiana.

16.3.3 Cayenne Office and Site The Cayenne office will be responsible for local purchases of available supplies and services, particularly from local suppliers, of cement, concrete blocks, equipment rental, hardware, etc.

16.4 Construction Management

16.4.1 Administrative Office Team Senior management for the Projects and Construction team, and more specifically the vice president and project manager, will be based in Longueuil (Canada). The project manager supervises engineering, procurement and construction at the site, cost control and the schedule. The organizational structure of the construction group administrative office is shown in Figure 16.1

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Vice President Projects & Construction

Engineering

Project Manager

Cost Controller

Procurement

Schedule Followup

Site Manager

Administrative Office Team

Figure 16.1

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16.5 Field Team Cambiors construction method relies on a highly skilled field team that has worked on similar projects for the company. We therefore expect to hire staff from previous projects. The construction manager is the site manager, and reports to the project manager. He manages all field personnel. The organizational structure of the construction group is shown in Figure 16.2. The operations group provides additional support and expertise in the areas of communications with local agencies, human resources, accounting, legal services, first aid including ambulance service, health and safety and the environment.

16.5.1 Technology Transfer Cambior has already developed two large projects in the Guiana Shield. In order to ensure the success of the Camp Caiman project, the engineers and technicians who participated in these projects must travel to Guiana during construction to transmit their project expertise to the local employees.

16.6 Project Schedule The Camp Caiman project has two major aspects that distinguish it from the companys other projects in the Guiana Shield. A large number of permits and authorizations; High precipitation (4,000 mm) during the first six months of the year. The main project calendar is shown at the end of this section. The following steps, listed by year, show the planned progress of the work.

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Site Manager

Material Logistics

Accounting Technical Support

Responsible Civil

Responsible Mechanical

Responsible Structural Steel Erection

Responsible Electric & Automation

Responsible Piping

Foreman and Workers

Foreman and Workers

Foreman and Workers

Foreman and Workers

Foreman and Workers

Field Team

Figure 16.2

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16.6.1 Year 2005 In order to reach our goal of commercial production in the fourth quarter of 2007, the following work must begin in September 2005: Clearing of the piste sud; Final engineering; Heavy machinery, crushing equipment, concrete plant, modular buildings and other purchases; Dismantling and reconditioning of equipment from the Omai mine.

16.6.2 Year 2006 Preparation of the two plateaus (45 m and 35 m); Crushing and concrete plant; Construction of the infrastructure on plateau 45; Pouring of the foundations and erection of the structure and roofing for the grinding area.

16.6.3 Year 2007 Construction of the mill structures and building (other than grinding); Installation of all processing equipment; Power line completed; Commissioning and start-up fourth quarter of 2007.

16.7 Construction Manpower The capital costs related to construction are estimated as follows: The man-hour estimate is based on North American productivity ratios for each discipline, adjusted by factors that represents the expected productivity in the field under local conditions; Salaries are established based on data from local suppliers; and

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Equipment prices are established based on estimates from local suppliers. The construction schedule is based on a site that operates seven days a week, 10 hours per day, for a total of 70 hours per week. As French law does not permit workers to work more than 35 hours per week, two crews will be used. Typical construction manpower is required, namely carpenters, electricians, machine operators, mechanics, millwrights, pipefitters, plumbers, welders, labourers, and administrative and human resource personnel. Figure 16.3 shows the construction manpower working on site at any given time, with a similar number off work at the same time.

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Cumulative Hours and Workers per Month


600000 150

500000

125

Cumulative Hours

400000

100

300000

75

200000

50

100000

25

fvr-06

fvr-07

nov-05

avr-06

janv-06

nov-06

janv-07

avr-07

sept-05

dc-05

mars-06

mai-06

sept-06

aot-06

mars-07

dc-06

mai-07

sept-07

aot-07

nov-07

oct-05

oct-06

oct-07

juil-06

Month

Men/Month

Heures

Manpower and cumulative manhours for the Camp Caiman construction project

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dc-07

juin-06

juin-07

juil-07

Figure 16.3

Men

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16.8 Indirect Costs Table 16.1 provides a summary of indirect costs.

Table 16.1 Summary of indirect costs Discipline Construction Facilities Construction Tools and Equipment Construction Equipment Maintenance Construction Infrastructure Maintenance Construction Engineering Construction Management Construction Transport Lodging during Construction Personnel Transport during Construction Supplier Representatives Initial Fill Critical Parts Corporate Charges Total: Cost ($000) 539 3,018 1,766 587 3,195 3,098 4,325 900 1,405 250 319 60 825 20,287

Construction Facilities Temporary construction facilities will be set up as soon as construction begins, including power supply.

Construction Tools and Equipment A budget is provided for the purchase of mobile construction equipment. All equipment will be transferred to operations at the end of the construction period.

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Construction Equipment Maintenance A budget is provided for the maintenance of all construction equipment. Duties and taxes.

Construction Transport All North American materials and equipment are quoted FOB Houston. There is a budget for shipping from Houston to French Guiana, as well as transport from the port at Dgrad-des-Cannes to the site.

Lodging During Construction The budget for housing and meals during the construction period is based on the rate of $50.00 per man day for the Camp Caiman operation.

Personnel Transport During Construction A budget is provided for expatriate workers. The costs are based on the manpower work schedule, and include air and ground transport.

Supplier Representatives A budget is allocated for supplier representatives who support the owner during installation or commissioning of specific equipment. In most cases, this is covered by a clause in the equipment guarantee. Initial Fill A budget is allocated for the reagents and steel balls required for mill start-up.

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16.9 Contingency A $5.0 million contingency representing 7% of the direct and indirect construction costs is added to the project capital requirements. This contingency takes into account the degrees of precision of engineering and costing completed for the project and the fact that similar mills have been built by the company, including two in the neighbouring countries of Guyana and Suriname, in a similar environment. No contingency has been allocated for equipment and materials from Omai Gold Mines Limited and Rosebel N.V.

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17.0 OPERATING COST ESTIMATE

17.1 Operating Costs Operating costs are discussed in the preceding chapters, and are only summarized here. The costs for each year of operation are provided by activity sector: mine, mill and general and administrative services. Table 17.1 summarizes the costs in US dollars and unit costs by sector, as well as the costs per ounce produced. Unit costs per ounce produced are greatly affected by recovery, which declines over the project life due to the rising proportion of hard rock ore milled as time goes on. Recovery varies from 93% to 58% in the last year. The cost per ounce produced is US $267.80 over the life of the project. It reaches a low of US $202/ounce in Year 2 and a high of US $332/ounce in Year 6. The milling rate decreases in the last three years, from 2 million tonnes to about 1.3 million tonnes, which increases costs due to the influence of fixed overhead costs. The milling cost per tonne over the life of the project varies from US $16.60 to $22.74 and averages US $18.89. Operating costs are broken down as follows: 1. Mine 2. Ore feed 3. Mill 4. Power 5. General services and administration 42.2% 1.4% 29.9% 8.2% 18.3%

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Table 17.1
Operating Costs
2008 1 Exploration Calendar Saprolite Rock and transition Total Ore Sterile Total Mill Calendar Tonnes milled Average grade Metal contained % Saprolite % Transition % Rock Average recovery Gold production Inventory Saleable gold Operating Cost byr sector Mining Ore Feed Milling Electricity Admin et services Total Costs by produced ounces Mining Ore Feed Milling Electricity Admin et services Total Costs by produced tonnes Minage Ore Feed Milling Electricity Admin et services Total Costs by mined tonnes Mining (US$/t) 1.41 1.53 1.55 1.59 2.11 2.39 2.60 1.74 (US$/t) (US$/t) (US$/t) (US$/t) (US$/t) (US$/t) 6.95 0.22 5.01 1.15 3.27 16.60 7.46 0.22 4.87 1.14 3.21 16.90 7.73 0.27 5.35 1.34 3.32 18.01 7.90 0.26 5.14 1.27 3.24 17.81 9.55 0.35 6.12 1.72 3.30 21.03 8.76 0.28 7.03 2.34 3.97 22.38 7.60 0.32 7.45 2.69 4.68 22.74 7.98 0.27 5.65 1.54 3.45 18.89 (US$/oz) (US$/oz) (US$/oz) (US$/oz) (US$/oz) (US$/oz) 95.30 3.01 68.68 15.76 44.81 227.57 89.16 2.63 58.19 13.67 38.37 202.03 111.95 3.97 77.50 19.43 48.10 260.95 139.20 4.56 90.66 22.39 57.16 313.97 149.86 5.45 96.06 26.95 51.74 330.05 130.11 4.11 104.42 34.80 58.94 332.37 85.47 3.55 83.71 30.21 52.67 255.61 113.09 3.81 80.11 21.83 48.96 267.80 (000 US$) (000 US$) (000 US$) (000 US$) (000 US$) (000 US$) 13,957.54 441.04 10,058.64 2,308.47 6,562.07 33,327.76 14,969.35 441.82 9,770.73 2,295.92 6,442.55 33,920.36 15,512.35 550.58 10,738.79 2,692.62 6,665.68 36,160.02 15,854.34 519.14 10,325.14 2,550.51 6,510.22 35,759.34 18,628.98 676.97 11,941.53 3,350.74 6,431.58 41,029.79 11,912.42 376.37 9,559.99 3,185.91 5,396.19 30,430.88 7,179.85 298.42 7,032.65 2,538.28 4,424.62 21,473.81 98,014.81 3,304.33 69,427.47 18,922.44 42,432.91 232,101.97 (onces) (onces) (onces) (000 t) (g/t) (onces) 2,007.50 2.45 158,157.01 1.00 0.00 0.00 0.93 146,453.40 -4,000.00 142,453.40 2,007.50 2.80 180,537.70 1.00 0.00 0.00 0.93 167,900.06 0.00 167,900.06 2,007.50 2.54 164,051.95 0.80 0.10 0.10 0.84 138,569.64 0.00 138,569.64 2,007.50 2.10 135,468.17 0.88 0.01 0.11 0.84 113,894.48 0.00 113,894.48 1,951.15 2.86 179,361.63 0.39 0.09 0.52 0.69 124,312.34 0.00 124,312.34 1,359.62 3.47 151,702.74 0.11 0.01 0.88 0.60 91,557.51 0.00 91,557.51 944.43 4.76 144,595.45 0.00 0.01 0.99 0.58 84,008.74 4,000.00 88,008.74 12,285.19 2.82 1,113,874.67 0.67 0.03 0.29 0.78 866,696.16 0.00 866,696.16 (000 t) (000 t) (000 t) (000 t) (000 t) (000 t) S/M 06/29/08 9,865.02 68.68 9,933.70 1,942.29 7,991.41 9,933.70 4.11 2009 2 06/29/09 8,929.58 837.68 9,767.26 2,299.04 7,468.23 9,767.26 3.25 2010 3 06/29/10 9,069.55 932.22 10,001.77 1,731.56 8,270.21 10,001.77 4.78 2011 4 06/29/11 8,312.31 1,688.03 10,000.34 2,163.55 7,836.80 10,000.34 3.62 2012 5 06/28/12 2,043.75 6,772.80 8,816.55 2,022.34 6,794.21 8,816.55 3.36 2013 6 06/28/13 2.25 4,982.00 4,984.25 1,265.15 3,719.10 4,984.25 2.94 2014 7 06/28/14 0.00 2,762.70 2,762.70 787.61 1,975.09 2,762.70 2.51 39,973.75 18,612.96 58,586.70 12,285.19 46,301.51 58,586.70 3.77 TOTAL

A large proportion of expenses will be in Euros during operation. Amounts paid in Euros include salaries, electricity, a portion of the transport costs and laboratory costs. Most of the consumables will be sourced in North America and will therefore be in US dollars. The proportion of expenses paid in Euros will be 49% during the operating period, with slight variations over the years. Table 17.2 shows a breakdown by sector.
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Table 17.2
Operating Costs by Currency
2008 1 Mining (% US$) Expenses US$ en US$ Expenses Euro en US$ G&A (% US$) Expenses US$ en US$ Expenses Euro en US$ Mill (% US$) Expenses US$ en US$ Expenses Euro en US$ Total (% US$) Expenses US$ en US$ Expenses Euro en US$ 42% 6 115,47 8 283,11 0,38 2 483,54 4 078,53 0,65 8 028,35 4 338,75 0,50 16 627,36 16 700,39 2009 2 46% 7 020,10 8 391,07 0,35 2 265,70 4 176,85 0,65 7 816,76 4 249,88 0,50 17 102,56 16 817,80 2010 3 44% 7 005,41 9 057,51 0,33 2 215,81 4 449,87 0,64 8 554,74 4 876,68 0,49 17 775,96 18 384,06 2011 4 47% 7 689,59 8 683,88 0,33 2 124,05 4 386,17 0,64 8 207,28 4 668,37 0,50 18 020,92 17 738,42 2012 5 55% 10 660,07 8 645,88 0,32 2 083,47 4 348,11 0,63 9 576,63 5 715,64 0,54 22 320,16 18 709,63 2013 6 56% 6 825,95 5 462,84 0,30 1 597,60 3 798,59 0,59 7 568,05 5 177,85 0,53 15 991,60 14 439,29 2014 7 54% 4 025,79 3 452,47 0,28 1 247,37 3 177,25 0,57 5 426,53 4 144,40 0,50 10 699,68 10 774,13 49% 49 342,37 51 976,77 0,33 14 017,54 28 415,38 0,62 55 178,34 33 171,57 0,51 118 538,25 113 563,72 TOTAL

17.2 Capital Expenditures The capital cost estimate was prepared by Cambior and its consultants using current raw materials prices. The French Guiana context was taken into account either for local project elements or to account for the cost of importing equipment and consumables, including the applicable octroi de mer tax and duties. All amounts are in US dollars.

17.3 Preproduction Expenditures Construction and preproduction expenditures amount to US $114.7 million. A breakdown of this amount is provided in an appendix to the feasibility study. Table 17.3 shows a summary of the breakdown by project element. The various areas are described in previous chapters: Area 100 General services and administration: Chapter 9; Area 300 Mine: Chapter 4; Area 400 Power and communications: Chapter 8; Area 500 Infrastructure: Chapter 7; Area 600 Process: Chapter 5; Area 800 Tailings and water management: Chapter 6.

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Table 17.3
Preproduction Expenditures Area 100 - Administration and Services 101 General Management 102 - Accounting 103 - Communications 104 - Environment 105 - Mill 111 - Purchasing & Supplies 121 - Human Resources 122 - Health & Safety 123 - Security 130 - Housing 137 - Transport Administration and Services Sub Total : 300 Mine 301 - Operations Administration 302 - Administration Maintenance 303 - Mine Engineering 304 - Geology 305 - General Maintenance 307 - Dewatering Equipment 331 - Mine Production Equipment 341 - Mine Support Equipment 342 - Explosive Warehouse 360 - Mine Road (18m large) 362 - Tailings Access Road Mining Sub Total : 400 Electrical and communications 410 - Electric Power - EDF 420 - Secondary Aerial Lines 430 - Communications and IT Equipment Electrical and Communications Sub Total: 6,280,000 465,750 932,890 7,678,640 1,075,176 834,407 698,771 375,769 855,760 387,805 15,195,600 2,388,000 120,130 632,800 167,350 22,731,568 1,935,182 405,580 825,658 650,872 1,231,569 1,439,758 1,183,012 313,384 1,018,589 974,594 906,778 10,884,976 Total

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Table 17.3 (suite)


Preproduction Expenditures Area 500 - Infrastructures 500 - Pit Preparation 502 - Dump Site Preparation 510 - Construction (Piste Sud) 511 - Bridges 515 - Rehabilitation (Piste Nord) 520 - Project Site Roads 524 - Heliport 525 - Site Preparation 526 - Camp Site 527 - Kitchen 528 - Site Offices 535 - Caiman Administrative Office 536 - Cayenne Administrative Office 538 - Lodging - Cayenne 545 - Heavy Mechanical Workshop and Warehouse 550 - Fuel Storage Mobile Equipment 565 Concrete Plant 570 - Laboratory - Cayenne 575 Mechanical Workshop - Mill 576 Reagent Storage 578 Gatehouse Infrastructures Sub Total : 600 - Processing 604 - Crushing and Conveying - Rock 605 - Ore Handling - Sap 610 - Grinding 620 - Thickening - Before Lixiviation 625 - Leaching & C.E.P. 630 - Carbon Regeneration and Refining 635 - Reagents Preparation 640 - Compressors 641 - Mill Offices 645 - Metallurgical Laboratory (Mill) 650 - Process Electrical Room 654 Tailings Refining and Ore Treatment 655 - Thickening and Tailings Pumping Processing Sub Total: 2,334,386 1,023,616 5,556,933 1,912,509 3,877,698 2,555,146 2,001,061 575,593 335,382 192,123 2,247,424 1,608,041 2,059,427 26,279,339 522,819 300,750 2,072,342 426,000 186,051 5,439 927,593 368,295 341,144 32,632 1,178,085 190,392 2,954,714 1,569,385 421,657 195,216 100,000 283,155 231,312 60,145 12,367,125 Total

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Table 17.3 (suite)


Preproduction Expenditures Area 800 Tailings and Water Management 805 Deposition Cell #1 811 Sedimentation reservoir for pulp cells 806 - Chute 810 - Tailings Pipeline 820 - Fresh Water (Recirculated) 823 - Potable Water 825 Fire Protection 826 Emergency Drainage Reservoir 830 Tailings Reservoir 840 Pulp Residue Tailings and Water Management Sub Total: 900 Indirects 905 Temporary Facilities - Construction 910 Equipment & Tools - Construction 915 Equipment Maintenance - Construction 916 Infrastructure Maintenance - Construction 920 Construction Engineering 925 Construction Management 930 Transportation (Freight)- Construction 935 Personnel Housing 940 Personnel Transport 945 Technical Assistance - Vendors 950 Initial Fill 955 Major Replacement Parts 985 Corporate Services C.M.S. for Construction 990 - Contingencies - Construction 991 - Contingencies - Operations Indirects Sub Total: Grand Total 539,560 3,018,102 1,765,818 586,904 3,195,000 3,098,005 4,325,000 900,000 1,405,000 250,000 319,282 60,010 825,000 5,000,000 1,500,000 26,787,681 114,708,100 1,014,166 479,319 40,215 562,512 1,011,630 358,021 528,895 131,825 414,731 3,437,457 7,978,770 Total

17.4 Production Expenditures Given the seven-year life of the mine and the fact that production equipment will be purchased new, few production expenditures will be required. Table 17.4 provides a summary of production expenditures. These consist primarily of dam construction for the creation of new thickened tailings deposition cells, replacement pickups and ATVs, additional mine pumps for the pit dewatering system, and finally, crushers for the hard rock in Year 2. expenditures therefore amount to US $4.4 million. Production

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Table 17.4
Preproduction Expenditures Area 300 - Mining 307 Dewatering Equipment 331 Mine Production Equipment 341 Mine Support Equipment Mining sub-total : 600 - Processing 604 Crushing and Conveying - Rock Processing sub-total : 800 Tailings and Water Management 805 Deposition Cell # 1 Tailings and Water Management sub-total : Grand Total 679,900 679,900 1,099,900 597,213 597,213 1,953,213 536,000 262,591 262,591 502,591 200,507 200,507 339,507 1,740,211 1,740,211 4,431,211 1,300,000 1,300,000 1,300,000 1,300,000 420,000 420,000 56,000 56,000 296,000 536,000 240,000 240,000 14,000 139,000 240,000 0 125,000 365,000 420,000 606,000 1,391,000 1 2 3 4 5 6 7 Total

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17.5 Closure and Rehabilitation Plan

17.5.1 Introduction The applications for authorizations to initiate mine operations and operate the mill contain general information on the site closure and rehabilitation plan. The highlights are presented here, as well as the costs of rehabilitation over time. Beginning at the project design stage, various measures were incorporated into the construction and operations phases to take into account the environmental impact of the project, including site clearing, the location of the production facilities and associated infrastructure, the selection of equipment and technologies, and ongoing rehabilitation whenever possible.

17.5.2 Rehabilitation Goals This site closure and rehabilitation plan is conceptual, as the project is currently in the development phase. The general goal is to return the site to a state that minimizes any trace of the operation. The plan provides for the various activities to be undertaken to return the Camp Caiman site to a state of selfsustaining equilibrium. After the operating phase, the site must be returned to physical and chemical stability, including revegetation of the disturbed surfaces, to allow it to become re-established and return to a state similar to its original environment. In order to set up a revegetation plan for rehabilitation, trials will be performed for the various substrates to be encountered at the site upon upon closure. favourable to spontaneous regrowth. A third element of the revegetation plan proposes a post-rehabilitation monitoring program that aims to ensure that the desired goals have been attained. These goals are: Removal of equipment and dismantling of the buildings and infrastructure; Clearing of debris and demolition of foundations; Soil decontamination; Removal of all industrial waste stored in the dump sites to an off-site location for elimination; Securing of the area to protect personal health and safety;
231

This involves attempting to recreate conditions

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Returning all disturbed surfaces to a state where plant cover prevents erosion and permits revegetation to become established;

Elimination or minimization of significant effects on surface or ground water; Avoidance of any contamination of this same water; Long-term promotion of self-sustaining site maintenance.

A schedule is proposed for the various elements of the rehabilitation plan, as well as a cost estimate for implementation. This preliminary plan will have to evolve once the project starts up and as additional information becomes available, and will be reviewed annually before being implemented.

17.5.3 Closure and Rehabilitation Criteria Water Quality The quality of the water discharged from works such as the ponds and drainage ditches will comply with limits based on the actual values measured during the initial state study, which comply with the natural quality of the water in the receiving environment. The same criteria will apply to the ground water. Soil Quality Any soils that might be contaminated with hydrocarbons or chemical products will be sampled, excavated, and treated or eliminated in an area authorized for that purpose. Stabilization and Revegetation of Disturbed Surfaces All areas cleared and used for the various elements of the Camp Caiman industrial mining project will be graded as needed to ensure that they are stable from erosion. Following revegetation trials, these surfaces will also be planted with an initial cover so as to ensure natural regrowth in the areas in question.

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17.5.4 Closure of the Various Project Elements Open Pits Two open pits, the Scout and the CC-88, will be mined during the life of the project. They will be mined simultaneously for the first five years of operations. In the last two years, only the CC-88 pit will be in production. Once the reserves are depleted, all the equipment including dewatering pumps will be removed. A portion of the bottom of the Scout pit will be used to store tailings once the chemical stability of the tailings has been demonstrated to the satisfaction of French authorities. Rain and ground water infiltration will then fill the pits. The water inflow is estimated at 14,000 m3/day, so the two pits will overflow after about 26 months and will discharge into the Fourca Ouest creek. A rock-lined spillway will be constructed at the lowest point of the pit edge to evacuate the water toward the Fourca creek. While the various types of rock mined from the pit have not shown any acid-generating or metal leaching potential, the quality of the water from the pit will be monitored both during and after mining. Revegetation is planned to create a natural landscape on the upper pit benches that remain above water. The windrowing approach was selected as the revegetation method for the pit slopes. Windrowing is a clearing method developed in the equatorial Amazon for the installation of palm oil plantations. The windrows pushed to the pit edge will be placed on the berms left between the benches as the pit is excavated. The crown of the windrow will rot in place and enrich the soil locally in organic material. The extra branches and leaves will be hauled to the edge of the waste dumps and will be used in the revegetation of the graded slopes. Waste Rock Dump The west dump (which contains the waste rock from the Scout pit) will be graded and revegetated in Years 6 and 7, before the end of operations. Work on the east dump is planned for Year 8, once the CC-88 pit reserves have been depleted. However, the lower benches of the dump, being the first 20 metres (m), will be revegetated to test and improve the selected method. The second bench will have a collector ditch around it to direct runoff water to the settling pond. The slopes will be graded as needed and the compacted surfaces will be scarified to enhance aeration. The two ponds will be kept intact, with the water quality checked to ensure that the goals are met.

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Ore Stockpiles Two ore stockpiles are planned at the mill feed intake: one for the saprolite ore and the second for the hard rock ore. These two stockpiles will be eliminated before the mill shuts down. The two sites will be graded as needed prior to revegetation appropriate to this type of substrate. Dewatering Pond The pond where the water from pit dewatering is collected provides process water for the mill, fresh water and water for fire protection. When the mine closes, dewatering of the two pits will cease and the pond will no longer be needed. It will be dismantled and the soil will be graded in preparation for revegetation and a return to natural drainage. Tailings Pond The goals for the closure of the tailings pond are to minimize surface erosion and to establish pioneer vegetation. Results of kinetic testing on samples of ore to be mined and processed and on the waste indicate that they are not acid-generating. Leaching tests also indicated that that the tailings do not generate leach that could affect the quality of the surface and ground water. The tailings are stored in five cells, each with a life of about 1.5 years. The deposition strategy allows for a central settling pond to collect runoff water while the pond is in operations. The pond design therefore allows the progressive rehabilitation of the cells during pond operation, the goal being to rehabilitate a cell in the year after it ceases operation. Once rehabilitation is complete, runoff water is sent via ditches into the environment instead of the settling pond. The first deposition cell can therefore act as a trial bed to test the selected approach. As the mine tailings have been thickened, the surface can hold bulldozers and graders, which makes rehabilitation much easier than in a conventional tailings pond. The life cycle of the first thickened tailings cell (clearing, dam construction and restoration) is shown in Figure 17.1, Figure 17.2, Figure 17.3 and Figure 17.4. Once the pond closes, a monitoring program will be established and samples will be taken regularly over a five-year period. Post-closure monitoring will establish whether the closed pond behaves as foreseen during design. The stability and revegetation of the tailings in the pond will also be monitored. Monitoring could be modified depending on the results observed.

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Life of Tailings Pond Cells


0 mtres 500

Cell #1

Deforestation

Settling Pond

Year -2

Figure 17.1

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Life of Tailings Pond Cells

Cell #1

Deforestation Settling Pond Water Runoff


Settling Pond

Year -1

Figure 17.2

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Life of Tailings Pond Cells

Cell #1 Cell #2

Deforestation Settling Pond Thickened Tailings Paste

Settling Pond

Water Runoff

Year 1

Figure 17.3

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Life of Tailings Pond Cells

Cell #2

Deforestation Settling Pond Thickened Tailings Paste

Settling Pond Cell #3

Revegetation Water Runoff

Year 3

Figure 17.4

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Mill and Tailings Purification Unit Site During site closure, the mill complex including the tailings purification unit and all associated facilities such as the mechanical shop, power generation station, warehouse, tailings pipeline, etc. will be dismantled and transported off-site for resale, re-use or elimination as appropriate. The equipment associated with the buildings and facilities will be removed for resale or re-use. The concrete foundations will be decontaminated as required, broken at ground level and buried with a substrate appropriate to revegetation. Soil contaminated with hydrocarbons or chemical products will be excavated and sent to authorize decontamination areas. The ground will be graded to re-establish drainage and control erosion and settling. Revegetation will be based on the results of trials. Emergency Pond The emergency pond at the mill site will be drained and the dam dismantled to revert to the initial drainage state. The slopes will be stabilized and revegetated. Infrastructure Water Distribution System The above-ground lines will be removed and the buried lines (fire protection and drinking water lines) will be drained, plugged and left in place. Only water will remain in the buried pipelines. Power Generation and Distribution The buried power line linking EDF to the mine will be left in place for local use beyond the life of the operation. All the transformers, distribution lines and emergency units on site will be removed, and the vacated land will be graded and revegetated as appropriate. Roads All roads except for the north and south accesses and the service roads required for on-site monitoring will be scarified and loosened to promote revegetation. The culverts and other water passageways not associated with the above-mentioned roads will be removed to allow the site to regain its physical stability and revert to its natural drainage.

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Reagents and Industrial Waste All chemical and oil products remaining in the storage areas, including explosives and accessories, will be removed and sent off-site for elimination or returned to the suppliers. The connecting pipelines will be drained, cleaned, and removed. Physical storage structures such as tanks, cells, bins and any confinement facilities and related dams will be removed or dismantled. Areas with surface or subsurface contamination that exceed applicable recovery criteria will be dug up and eliminated on- or off-site. The disturbed areas will be levelled and graded to minimize erosion and settling due to runoff. The area will be replanted with vegetation appropriate to the substrate.

17.5.5 Revegetation Trials The initial revegetation plan is based on plans developed by Phytotrop to restore placer gold mining sites in French Guiana. This firms cumulative experience indicates that their revegetation method can be used for any type of substrate. The goal is to create a pioneer plant stratum that then allows other species to become established. This is a two-stage operation. Once the slopes of the exposed pit benches and dumps have been graded, they are seeded with pioneer species. The three currently used by Phytotrop are: Acacia Mangium, which creates a fairly dense cover 10 to 15 metres (m) high in 2 to 3 years; A Sennatype legume plant occupies the first 3 to 4 m above ground. While it too is fairly dense, light passes through it to allow other species to grow. Another Serbania-type legume plant that provides cover at ground level (80 cm to 1.5 m).

These three plants play a pioneering role in occupying the space. Seeds of the primary species in the vicinity begin to colonize through the action of wind and wildlife (bats, birds). After two or three years, once the pioneer cover is sufficiently developed, Phytotrop introduces seeds and seedlings of other local primary species that can then develop in the shelter of the pioneer vegetation. In keeping with the Camp Caiman mine site restoration plan, CBJ-CAIMAN intends to undertake, from the outset of operations, research on revegetating the site area with native species. The five-year program in collaboration with recognized researchers and local public institutions provides for trial beds to be planted to optimize indigenous species colonization of soft surfaces made of saprolite (waste dumps, roads, etc.),

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hard surfaces made of hard rock (hard rock waste dumps) and the mine tailings (tailings pond). Depending on the surfaces to be planted, the program will assess, if required, the added soil required to optimize a return to the initial state. Generally, research will be carried out in Guiana at the Camp Caiman site, in conditions applicable to the actual program subjects. CBJ-CAIMAN has the advantage of having project environmental advisory committee members who are very active in this field. They can be called upon to provide the structure required for successful research and thus support local training networks in this area. CBJ-CAIMAN will promote research conducted by local institutions like University Antilles-Guyane, which offers a professional degree in environmental protection. CBJ-CAIMAN's restoration plan has a substantial budget of US $300,000 over three years. Work will begin in the first year of operation. Final Revegetation Plan One year before closure, CBJ-CAIMAN will propose a final restoration plan that includes the results of the above-mentioned research as well as rehabilitation already complete on some of the infrastructure. This plan will be thoroughly tested on surfaces rehabilitated prior to closure, which will allow the final plan to be further refined prior to revegetation of the remaining elements.

17.5.6 Post-Closure Plan During the production period, various sampling stations will be set up to provide quality control of surface water, water from the pit and dumps, and groundwater. Other stations will be used to monitor the evolution of the initial, pre-operation state of the area. Finally, the sampling network will include control points for geotechnical monitoring of the dams and monitoring of the receiving environment. All samples and measurements will be taken at these various stations at their individual frequency and analyzed for a range of parameters established at the outset by prefectoral order or based on the initial state of the area. Sampling points for post-closure environmental monitoring will initially be the same as during the mine life. Once mining ends, the monitoring program will be modified to confirm the effectiveness of the various rehabilitation activities while continuing monitoring of the environmental impact. Consequently, the

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sampling network will include some of the stations used during operations, with new stations added following closure. The program will help determine whether the Camp Caiman site water has reached or is on its way to reaching the goals for physical and chemical stability. This is a five-year program leading to a report on the results and a proposal for a new program covering specific aspects, if required. During the first two years, environmental monitoring will continue using the same procedure as during the production phase, taking into account the points that have been maintained or added. Physical stability monitoring will focus on rehabilitation and revegetation activities to identify cases of erosion and assess the ongoing establishment of vegetation. The drainage network will be examined for settling of solids and soil erosion. The slopes of the two pits and the waste dumps will be inspected to assess possible ground subsidence. Any additional requirements will be met wherever revegetation is insufficient. Monitoring of chemical stability will be achieved by regular sampling of surface water the first year and monthly sampling for the subsequent four years. quarterly after closure. Groundwater stations will be sampled

17.5.7 Timetable and Costs Timetable Pre-closure (Years 3 to 7) Continuous improvement of revegetation methods Final rehabilitation plan : Choice of closure and rehabilitation project manager Details of dismantling program Details of rehabilitation by infrastructure element Manpower and equipment requirements

Presentation of the plan to the various participants Grading and revegetation of the west dump and Scout pit Grading and revegetation of cells 1, 2, 3 and 4

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Post-closure (Year 8) End of pit dewatering and removal of pumps and pipelines; Construction of the spillway for pit overflow; Grading and revegetation of the east dump and pit CC-88; Dismantling of buildings and removal of equipment and infrastructure not required for rehabilitation activities for resale or re-use; Removal of surplus chemical and petrochemical products and explosives; Removal of contaminated materials and debris from demolition; Assessment and elimination of contaminated soils; Grading and revegetation of mill site areas; Assessment and cleaning of contaminated soils; Corrective measures for erosion of insufficient revegetation; Finalization of site rehabilitation work; Removal or resale of equipment and buildings used in rehabilitation.

Post-closure monitoring (Years 8 to 12) Post-closure monitoring of soil stability, water quality and revegetation Required maintenance

Closure and Rehabilitation Costs Surfaces to be rehabilitated are shown in Table 17.5 by year. 373 hectares. The entire surface area totals

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Table 17.5
RESTAURATION SURFACES (hectares) Components Scout Pit Pit 88 East dump and pond West dump and pond Fresh water pond Mining Access Road Milling Site Explosive Depot Parc Access Road Cell #1 Cell #2 Cell #3 Cell #4 Cell #5 Settling Pond Total 2008 1 2009 2 2010 3 2011 4 2012 5 2013 6 22,05 2014 7 22,05 2015 8 49,70 55,20 21,00 21,00 15,60 14,60 18,00 1,50 7,20 30,88 25,95 19,85 23,47 11,00 13,97 186,77 2016 9 2017 10 2018 11 2019 12 Total 44,10 49,70 55,20 42,00 15,60 14,60 18,00 1,50 7,20 30,88 25,95 19,85 23,47 11,00 13,97 373,02

30,88

25,95

62,90

66,52

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Dismantling The cost estimates associated with dismantling work are shown in Table 17.6.

Table 17.6

Dismantling Work Mill Service Facility Pomping Station Water Lines Electrical Lines Sanitary Services Fresh Water Soil Caractherization Decontamination Concrete Fondations Work Surveillance Security Total Costs (000 $ US) 1,600 300 100 50 10 10 10 20 150 100 150 200 2,700

Revegetation Trials The program cost is estimated at US $300,000 based on the proposals and action plans discussed in Section 13.4.5. Monitoring and Supervision The monitoring covered in Section 13.4.6 will extend over a five-year period. Including supervision, this monitoring will cost an estimated US $535,000 amortized over five years. Table 17.7 shows a summary of the total closure and rehabilitation costs.

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Table 17.7
REHABILITATION COSTS (US$) Components Restauration Dismantling Research Program Environmental Follow-up Total
5,000

2008 1 0 100,000 100,000

2009 2 0 100,000 100,000

2010 3 154,400 100,000 254,400

2011 4 0

2012 5 129,750

2013 6 314,500

2014 7 332,600

2015 8 933,850 2,700,000

2016 9 0

2017 10

2018 11

2019 12

Total 1,865,100 2,700,000 300,000 535,000 5,400,100

129,750

314,500

107,000 332,600 3,740,850

107,000 107,000

107,000 107,000

107,000 107,000

107,000 107,000

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18.0 FINANCIAL ANALYSIS

18.1 Methodology and Parameters The methodology used for selecting parameters is based on historical data and the establishment of correlations between these parameters when relevant to ensure coherence. In particular, the exchange rate and gold price in US dollars are strongly related, and this relationship is taken into account. The parameters used are also consistent with current economic reality of high gold and energy prices. The parameters with the greatest impact on the project as a whole are the: Gold price, Cost of electricity, Fuel price (diesel), and /US$ exchange rate.

The methodology used to arrive at each value selected is described below.

18.1.1 Gold Price The gold price is currently on an upward trend that began more than two years ago. Since September 2004, gold has traded in a range of US $420 to US $450 per ounce. The base case price selected is therefore US $425 per ounce, which presently represents the bottom of the range and serves as a market floor or support price. It is also the base price used to assess potential acquisitions. It is therefore reasonable to use this price at this stage to determine the feasibility of the project (Figure 18.1).

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480 460 440 420 400 380 360 340


USD/oz Eur/oz Eur/USD

1.40 1.35 1.30 1.25 1.20 1.15 1.10

320 300 280


1/9/02 10/12/02 20/3/03 28/6/03 6/10/03 14/1/04 23/4/04 1/8/04 9/11/04 17/2/05 28/5/05 5/9/05

1.05 1.00

Gold Price in US$ and Figure 18.1 18.1.2 Cost of Electricity The preferred energy cost for the project is the cost prevailing in France that is generated by lectricit de France (EDF), a state company that charges identical rates in all French dpartements including overseas dpartements (DOM) like French Guiana. Based on a large consumer rate, we would pay a fixed portion of 84/kW for power. Billing for consumption varies based on peak, shoulder and off-peak hours. The average for the consumption portion is 0.043/kWh or US$0.052/kWh. The total cost of our consumption would therefore be 0.053/kWh or US$0.064/kWh.

18.1.3 Fuel Price Fuel price forecasts are determined based on the forecast price of crude for the life of the project, being the next 8 to 10 years.

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Oil market analysts are forecasting high oil prices for the coming years, in the range of US $35-50/barrel (see Figure 18.2). The price of crude selected is therefore at the high end of this range, at US $50/barrel. The price of No. 2 diesel fuel is based on the average variances calculated using a crude oil correlation formula. For a price of US $50/barrel of crude, the equivalent price based on the correlation between the two products would be US $57/barrel or US $0.37/L. Various components and taxes must be added to this diesel fuel price to arrive at a retail price for the Camp Caiman site (Table 18.1). It is assumed that the project would obtain an exemption from the CRG tax (a regional tax) of 0.35210/L. The on-site price nonetheless remains high, at US $0.60/L, but represent a considerable improvement over the taxed price of US $1.04/L.

Table 18.1
ON SITE COMPOSITION OF GAZOLE PRICE

TAX AND DETAX OF GAZOLE PRICE


Platts price Initial additional cost (var.) 2,20% Fret maritime Credit FOB price Additional rights (var.) 4,50% Octroi de mer (var.) 2,50% Chambre de commerce Tax (fixed) Transportation Taxes (fixed) Financial strategic Stock Fees (fixed) Venue Tax - SARA (fixed) Special Taxes CRG (fixed) Sub-total taxes Importation Costs Marginal Importation (fixed) Cost Price Exchange rate / US$ : 1,20

/L

TAXES US$ / L
0,3720 0,0082 0,0466 - 0,0120 0,4148 0,0187 0,0104 0,0035 0,0028 0,0074 0,0785 0,4225 0,5437 0,9585 0,0840 1,0425

/L

DETAX US$ / L
0,3720 0,0082 0,0466 - 0,0120 0,4148 0,0000 0,0104 0,0035 0,0028 0,0074 0,0785 0,0000 0,1025 0,5173 0,0840 0,6013

0,3100 0,0068 0,0389 - 0,0100 0,3457 0,0156 0,0086 0,0029 0,0023 0,0061 0,0654 0,3521 0,4531 0,7988 0,0700 0,87

0,3100 0,0068 0,0389 - 0,0100 0,3457 0,0000 0,0086 0,0029 0,0023 0,0061 0,0654 0,0000 0,0854 0,4311 0,0700 0,50

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80
USG No.2 Crude Base Crude Price

70

60 US$/bbl

50

40

30

20
1/9/02 10/12/02 20/3/03 28/6/03 6/10/03 14/1/04 23/4/04 1/8/04 9/11/04 17/2/05 28/5/05 5/9/05

Diesel Fuel and Crude Oil Prices Figure 18.2 18.1.4 /US$ Exchange Rate The /US$ exchange rate is based on the US $425/ounce gold price. There is a strong correlation between the exchange rate and the gold price, as shown in Figure 18.2. Consequently, for the purpose of coherence among parameters, an exchange rate of 1.20/US$ was selected.

18.2 Taxation The Camp Caiman mining project is owned by CBJ-CAIMAN, a simplified joint stock company (socit par actions simplifie, or SAS) that resulted from the transformation in December 2004 of Asarco Guyane Franaise, a limited liability company (Socit Responsabilit Limite, or SARL). The head office of CBJ-Caiman is located in Rmire-Montjoly in the DOM of French Guiana.

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CBJ-CAIMAN is owned by CBJ-FRANCE, an SAS with its head office in Rmire-Montjoly. As explained in Section 2.2 of this study, the reorganization presently underway will result in all the shares of CBJFRANCE being held directly by Cambior Inc., a Canadian public company. Pursuant to French tax laws, CBJ-CAIMAN is subject to various direct and indirect taxes levied by four levels of government: the commune, the dpartement, the region and the French state. Furthermore, as the French state is part of the European Union (EU), EU regulations must also be taken into account.

18.2.1 Direct Taxation The main direct tax to which CBJ-CAIMAN is subject is the corporate tax, at an effective rate of about 24%, net of the one-third reduction accorded for activities conducted in DOMs. However, CBJ-CAIMAN benefits from a corporate tax exemption for ten years beginning on the effective start-up date of the facilities. Given this exemption, no corporate tax is included in the economic analysis. CBJ-CAIMAN also benefits from the rgime de longue dure for a 17-year period beginning from the initiation of exploration. An interpretation request was sent to the French tax department for clarification of the implications of the rgime de longue dure, particularly with regard to property taxes. The corporate tax exemption and the rgime de longue dure do not, however, eliminate the 5% dividend withholding tax that applies on dividend payments by CBJ-France. The 5% rate is provided for under the Canada-France Income Tax Convention and applies whenever a French company pays a dividend to a Canadian company who holds 10% or more of the shares of the French company, as in the case of the Camp Caiman project. This study, which is prepared on the basis of the Camp Caiman project, does not take into account this 5% tax, which would apply to any dividend paid to Cambior Inc. by CBJ-France S.A.S.

18.2.2 Income Taxes and Indirect Taxes The main income and indirect taxes include the regional octroi de mer tax, the fuel tax, property taxes and the mine royalty, which are discussed below. There are also other taxes, such as port charges, that have also been considered in the economic analysis even if not specifically discussed below.

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a) Octroi de Mer and Regional Octroi de Mer In general, deliveries of goods and services in France are subject to the value added tax (VAT). However, because of an exemption, French Guiana is instead subject to the octroi de mer tax, which has a base rate of 17.5%, as well as the regional octroi de mer tax, which has a bse rate of 1.5%. The French Guiana regional council has jurisdiction over this tax as well as any applicable exemptions. No octroi de mer or regional octroi de mer tax applies to gold production as goods produced in French Guiana for export are exempt from such taxes by law. The octroi de mer tax applies to all goods purchased, including goods imported to French Guiana, unless an exemption exists. A first category of exemption involves a series of materials and equipment identified by tariff codes that are explicitly exempt from this tax by decree. A second category of exemptions, also covered by a decree, consists of all raw materials and supplies used in the production process. Whether an element qualifies under this second exemption must be determined on a case by case basis, depending on the characteristics of the business. We are in contact with the tax department to identify as accurately as possible the materials, supplies and equipment exempt under this second category. For feasibility study purposes, it was assumed that nearly all imports and purchases would be exempt from the octroi de mer tax. Certain items are not presently included in either category of exemption, implying that any reduction or elimination of the octroi de mer tax must be obtained from the regional council. This request is justified by CBJ-CAIMANs export activities, which entitle the company to reimbursement of any octroi de mer tax paid. A reduced rate of 1.5% is used in the feasibility study for the regional octroi de mer tax, which corresponds to the rate associated with an exemption from the octroi de mer tax. b) Fuel Tax The establishment of a special consumption tax on fuel (T.S.C.C.) as well as the octroi de mer tax on petroleum products falls under the jurisdiction of the regional council. A decree adopted last December exempts the forestry, agricultural and fishing industries as well as taxi operators from these taxes. No mention is made of mining companies.

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CBJ-Caiman filed an application with the regional council last February for a reduction in the fuel tax in the form of a reallocation of all of the applicable tax into exploration expenses on Camp Caiman and other projects in French Guiana. Since then, various meetings have been held and correspondence exchanged, providing the opportunity to better explain the positive impact of the project on the region, such as job creation and training of Guianese employees, participation in the economic and social development of French Guiana, contribution to land development, increased knowledge and preservation of the environment, as well as participation in the sustainable development of French Guiana. The amount of potential fuel tax is US $11.6 million or US $300,000 for each year the mine is in construction and about US $1.5 million for each year of production considered in the feasibility study. It is assumed that the regional council will accept the requested reallocation of the fuel tax; consequently, no such disbursement is included in the study. c) Property Tax Under French law, property taxes are shared among the commune, the intercommunalit, the dpartement and the region. There is an exemption from property taxes for the first two years following construction. A French consultant determined that the annual property taxes applicable to the project based on the forecast investment was US $1.2 million, assuming that the tailings pond area is excluded from the taxation base. An interpretation request was filed with the tax department to confirm this interpretation, based on the fact that the tailings storage areas are in integral part of the mining process. If these areas are included in the taxation base, the property tax would be US $1.5 million per year. However, as mentioned above, we filed an interpretation request with the tax department regarding the impact on property taxes of the rgime de longue dure that CBJ-CAIMAN enjoys, as we believe that it grants an exemption from such taxes during the 17 years that it applies. Given the uncertainty surrounding property taxes, a sum of US $500,000 per year has been allowed for property taxes in the feasibility study.

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d) Mine Royalty Under French tax law, CBJ-CAIMAN, as a mining company, is exempt from the business tax (taxe professionnelle) and instead subject to the mine royalty, which is 40.93 per kilogram of gold produced, or US $1.53/ounce. Sixty percent of this amount is paid to the commune and 40% to the dpartement. The average cost of the royalty is US $190,000 per year, for a total estimate of US $1.3 million for the period covered by the feasibility study.

18.3 Government Aid The two main sources of government aid considered in the study are the Girardin law regarding investments and, to a significantly lesser degree, the overseas program law (loi programme pour loutremer, or LOPOM). The Girardin law is an indirect investment tax incentive for certain activity sectors in French overseas territories and dpartements, including the mining sector. Under this program, an eligible capital project is partly financed by individuals who pay income tax in France (due to their activities). This investment enables such individuals to enjoy tax savings greater than the amount of the investment, hence the benefit to them. For companies like CBJ-CAIMAN who operate projects partially financed in this way, there is a mechanism for acquiring the fixed assets at a cost net of the amount invested by the individual taxpayers. For feasibility study purposes, it was assumed that the French taxpayers would be primarily companies, and that the tax savings for them would therefore be 33%, with CBJ-CAIMAN benefiting from 27%. It was also assumed that 85% of the capital expenditures would be eligible for this program. Generally, eligible assets are new goods or goods that have been substantially reconditioned immediately prior to their acquisition for the purposes of the project in question. The rules require that any project benefiting from the Girardin law operate uninterrupted for at least five years, failing which the individuals who provided the partial financing would be liable for the income tax initially saved as a result of their investment.

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Consequently, the assets financed in this way must be owned, for at least five years, by a transparent general partnership (socit transparente en nom collectif, or SNC), similar to a limited partnership, belonging to French taxpayers. During these five years, the company operating the project, like CBJCAIMAN, would rent such assets in accordance with the terms of a lease providing for annual rental payments approximately equal to the financing costs of the portion not contributed directly by the taxpayers (the remaining 73% of the cost). There is a mechanism that allows the operator to acquire the assets thus financed for a nominal amount once the five-year period is ended.

18.4 Economic Analysis

18.4.1 Cash Flow Analysis Operating Cash Flow CBJ-CAIMANs seven-year project will process 12.3 million tonnes grading an average of 2.82 g/t of gold with an average recovery of 77.8% to produce a total of 866,696 ounces of gold (26,957.26 kg). The production schedule is shown in Table 18.1. At a price of US $425 per ounce, gross revenues are US $368.3 million. Net of the mine royalty of US $1.3 million and refining and transport charges of US $2.1 million, revenues are US $364.9 million. The average operating cost over the life of the project is US $267.80/ounce for total operating costs of US $232.1 million. The operating cash flow generated over the life of the project is therefore US $132.7 million (Table 18.2).

Capital Costs Capital costs over the life of the project are estimated at US $119.1 million. Capital costs are discussed in Chapter 13. A Girardin subsidy of US $27.1 million results in a net investment of US $92.0 million for CBJ-CAIMAN.

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Working Capital Working capital of US $4.8 million is required to operate the project. A breakdown of working capital is provided in an appendix to this study.

Residual Value A residual value of US $7.2 million is forecast on resale of the equipment and infrastructure. This amount includes US $2.8 million for mining equipment (about 14% of the capitalized amount of US $19.4 million), US $1.5 million for mill equipment (mainly grinding mill and crushers) and US $2.9 million for the resale of the housing complex built in Cayenne.

Closure and Rehabilitation Closure costs are related to the US $1.3 million in layoff compensation paid to employees. Large sums are paid out in Year 6, when the mining rate decreases, and at the beginning of Year 8, which corresponds to the depletion of mine reserves. The cost of rehabilitating the site is US $5.4 million. Rehabilitation work is discussed in Chapter 13 of the study.

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Table 18.2
CALENDRIER DE PRODUCTION DU PROJET CBJ-CAIMAN S.A.S.
CBJ-CAIMEN PRODUCTION Calandrier de minage Saprolite Roche et transition Total Minerai Strile Total Calandrier d'usinage Saprolite Teneur saprolite Onces contenues Transition Teneur transition Onces contenues Roche Teneur roche Onces contenues Reserves dbut de priode Tonnes usines Teneur moyenne Contenu mtal % Saprolite % Transition % Roche Rcupration saprolite Rcupration transition Rcupration roche Production aurifre Inventaire en circuit Production disponible la vente (%) (%) (%) (ounces) (ounces) (ounces) (000 mt) (gpt) (ounces) (000 mt) (gpt) (ounces) (000 mt) (gpt) (ounces) (ounces) (000 mt) (gpt) (ounces) 2,008 2.45 158,157 0 0 0 0 0 0 1,113,875 2,008 2.450 158,157 100% 0% 0% 92.6% 80.0% 58.0% 146,453 (4,000) 142,453 2,007 2.80 180,538 0 0 0 0 0 0 955,718 2,007 2.797 180,538 100% 0% 0% 93.0% 80.0% 58.0% 167,900 167,900 1,608 2.08 107,500 196 4.18 26,339 203 4.62 30,213 775,180 2,008 2.542 164,052 80% 10% 10% 93.0% 80.0% 58.0% 138,570 138,570 1,758 1.75 99,111 26 3.49 2,882 224 4.65 33,475 611,128 2,008 2.099 135,468 88% 1% 11% 93.0% 80.0% 58.0% 113,894 113,894 751 2.00 48,352 178 2.66 15,270 1,021 3.52 115,740 475,660 1,951 2.859 179,362 39% 9% 52% 93.0% 80.0% 58.0% 124,312 124,312 149 2.03 9,763 10 2.13 694 1,200 3.66 141,245 296,298 1,360 3.470 151,703 11% 1% 88% 93.0% 80.0% 58.0% 91,558 91,558 0 0.78 0 11 1.90 652 934 4.79 143,944 144,595 944 4.762 144,595 0% 1% 99% 93.0% 80.0% 58.0% 84,009 4,000 88,009 866,696 866,696 12,285 2.820 1,113,875 67% 3% 29% 8,282 2.266 603,421 421 3.386 45,838 3,582 4.034 464,616 (000 mt) (000 mt) (000 mt) (000 mt) (000 mt) (000 mt) W/O 2005
P0

2006
P1

2007 P2 06/30/07 851 259 1,109 31 1,078 1,109 34.47

2008 1 06/29/08 9,865 69 9,934 1,942 7,991 9,934 4.11

2009 2 06/29/09 8,930 838 9,767 2,299 7,468 9,767 3.25

2010 3 06/29/10 9,070 932 10,002 1,732 8,270 10,002 4.78

2011 4 06/29/11 8,312 1,688 10,000 2,164 7,837 10,000 3.62

2012 5 06/28/12 2,044 6,773 8,817 2,022 6,794 8,817 3.36

2013 6 06/28/13 2 4,982 4,984 1,265 3,719 4,984 2.94

2014 7 06/28/14 0 2,763 2,763 788 1,975 2,763 2.51

2015 8 06/28/15

2016 9 06/27/16

2017 10 06/27/17

TOTAL

06/30/05

06/30/06 901 310 1,211 42 1,168 1,211 27.56

39,974 18,613 58,587 12,285 46,302 58,587 3.77

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Table 18.3
FLUX MONTAIRES DU PROJET CBJ-CAIMAN S.A.S.
CBJ-CAIMEN FLUX MONTAIRES Prix de l'or (LME) Production vendable Revenus Redevance minire Transport & affinage Revenus nets Cots d'opration Minage Usinage lectricit Admin et services Total Cots unitaires (US$/oz) Minage Usinage lectricit Admin et services Total Flux d'opration Immobilisations Administration & services quipements miniers Travaux terrasement & pr-prod. Usine Construction Total immo. (000 US$) (000 US$) (000 US$) (000 US$) (000 US$) (000 US$) 445 249 29 1,000 1,723 23.0% (1,723) (1,723) 8.0% 10.0% 10.35% (1,723) (1,723) (1,723) 4,033 13,223 4,494 133 35,200 57,083 23.0% 13,496 (2,687) (46,274) (47,997) (43,963) (43,429) (43,336) 5,175 4,816 6,491 1,070 38,350 55,902 23.0% 12,830 (2,094) (45,167) (93,164) (39,732) (38,536) (38,331) 420 680 1,100 27.0% 297 (100) 25,738 (67,425) 20,960 19,958 19,788 1,300 1,953 27.0% 527 (21) (100) 35,214 (32,212) 26,552 24,823 24,533 (18) (254) 21,366 (10,846) 14,917 13,692 13,489 (28) 11,656 810 7,535 6,791 6,668 500 (6) (130) 11,327 12,137 6,778 5,997 5,870 1,000 1,729 (312) (315) 10,215 22,352 5,660 4,917 4,797 3,281 5,515 (297) (333) 23,742 46,094 12,181 10,389 10,104 (654) (4,169) (4,822) 41,272 (2,291) (1,918) (1,860) 6,875 962 0 27,150 7,244 (1,336) (5,400) 41,272 56 597 536 536 240 263 503 139 201 340 9,653 19,430 12,974 1,232 75,850 119,139 (US$/oz) (US$/oz) (US$/oz) (US$/oz) (US$/oz) (000 US$) 98.32 68.68 15.76 44.81 227.57 26,641 91.79 58.19 13.67 38.37 202.03 36,761 115.92 77.50 19.43 48.10 260.95 22,174 143.76 90.66 22.39 57.16 313.97 12,187 155.30 96.06 26.95 51.74 330.05 11,302 134.22 104.42 34.80 58.94 332.37 8,112 89.02 83.71 30.21 52.67 255.61 15,575 116.90 80.11 21.83 48.96 267.80 132,753 (000 US$) (000 US$) (000 US$) (000 US$) (000 US$) 14,399 10,059 2,308 6,562 33,328 15,411 9,771 2,296 6,443 33,920 16,063 10,739 2,693 6,666 36,160 16,373 10,325 2,551 6,510 35,759 19,306 11,942 3,351 6,432 41,030 12,289 9,560 3,186 5,396 30,431 7,478 7,033 2,538 4,425 21,474 101,319 69,427 18,922 42,433 232,102 (US$/oz) (ounces) (000 US$) (000 US$) (000 US$) (000 US$) 2005
P0

2006
P1

2007 P2

2008 1 425 142,453 60,543 218 356 59,969

2009 2 425 167,900 71,358 256 420 70,681

2010 3 425 138,570 58,892 212 346 58,334

2011 4 425 113,894 48,405 174 285 47,946

2012 5 425 124,312 52,833 190 311 52,332

2013 6 425 91,558 38,912 140 229 38,543

2014 7 425 88,009 37,404 134 220 37,049

2015 8

2016 9

2017 10

TOTAL 425 866,696 368,346 1,324 2,167 364,855

% des immo. applicable la loi Girardin Grant Loi Girardin Fond de roulement Valeur rsiduelle Cots de fermeture Cots de rhabilitation Flux montaires avant impt Flux montaire cumulatif Flux actualis Flux actualis Taux de rendement interne (000 US$) (000 US$) (000 US$) (000 US$) (000 US$) (000 US$)

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Net Cash Flow Net pre-tax cash flow over the life of the project is US $41.1 million. The present value at various discount rates is shown in Table 18.4.

Table 18.4 ACTUAL VALUE (k US$) NPV (0%) NPV (5%) NPV (8%) NPV (10%) 41,272 17,489 6,883 970

18.4.2 Internal Rate of Return The internal rate of return based on the net annual cash flow shown in Table 15.3 is 10.36%.

18.4.3 Payback Period The project payback period is 3.9 years over a 7-year life for a recovery ratio of 0.55.

18.5 Sensitivities A project sensitivity analysis was performed for the following variables: gold price, /US$ exchange rate, operating costs, fuel price, metallurgical recovery for the hard rock ore and preproduction capital costs. The results are shown in Table 18.5 and in Table 18.3 and Figure 18.4.

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Table 18.5
Parameter Variance Gold Price US$/oz PV-8% (M US$) IRR Exchange Rate EUR/US$ PV-8% (M US$) IRR Operating Cost US$/oz PV-8% (M US$) IRR Fuel Price US$/L PV-8% (M US$) IRR Recovery (Hrd & Trn) Au g/t PV-8% (M US$) IRR Initial Capital Cost M US$ PV-8% (M US$) IRR -15% 361 -30.3 -4.20% 1.02 18.2 13.98% 228 29.9 17.44% 0.51 8.4 10.87% 51.0% -4.4 6.29% 97.5 19 15.33% -10% 383 -17.9 1.20% 1.08 14.4 12.80% 241 22.2 15.20% 0.54 7.9 10.70% 54.0% -0.6 7.76% 103.2 15 13.54% -5% 404 -5.5 6.00% 1.14 10.7 11.60% 254 14.6 12.85% 0.57 7.4 10.53% 57.0% 3.1 9.10% 109.0 10.9 11.89% 0% 425 6.9 10.36% 1.20 6.9 10.36% 268 6.9 10.36% 0.60 6.9 10.36% 60.0% 6.9 10.36% 114.7 6.9 10.36% 5% 446 19.3 14.40% 1.26 3.1 9.09% 281 -0.7 7.72% 0.63 6.4 10.19% 63.0% 10.7 11.53% 120.4 2.8 8.94% 10% 468 31.7 18.10% 1.32 -0.6 7.77% 295 -8.5 4.89% 0.66 5.9 10.02% 66.0% 14.4 12.63% 126.2 -1.2 7.61% 15% 489 44.0 21.60% 1.38 -4.4 6.42% 308 -16.1 1.83% 0.69 5.4 9.85% 69.0% 18.2 13.66% 131.9 -5.2 6.37%

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25.00%

Exchange rate Gold Price Opererating Cost Fuel Price Initial Capital Hrd & Trn Rec.

20.00%

15.00%
Internal Rate of Return

10.00%

5.00%

0.00% -15% -5.00% -10% -5% 0% 5% 10% 15%

-10.00%

Sensitivity: Rate of Return

Figure 18.3

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50 40 Present Value Discounted at 8% (US$ M) 30 20 10 0 -15% -10 -20 -30 -40 -10% -5% 0% 5% 10% 15%

Exchange rate Gold Price Opererating Cost Fuel Price Initial Capital Hrd & Trn Rec.

Sensitivity: Present Value Discounted at 8%

Figure 18.4

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Risk Analysis The following table (Table 18.6) summarizes the risks identified for the project, with the corresponding measures taken to offset the risk. Table 18.6 Risk Summary Risk o Labour relations Compensating Measure o o o o o o Availability of qualified manpower o Offer French Guiana-level remuneration Introduce a performance-based remuneration system Set a fair human resources policy Implement ongoing training Implement Cambiors production system (Kaizen) Establish partnerships with local training networks before commercial production begins Screen candidates using psychometric testing Select the most appropriate equipment for the conditions seen Use tailings thickening technology Collect and manage surface water Plan construction calendar based on rainy season Meet the planned filing date Respect standards and regulations Meet French documentation standards Metallurgical testwork during the first two years to improve recovery for the hard rock ore

o o Weather conditions o o o o o Permitting delays o o o o Metallurgical recoveries o

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19.0 MARKETS AND CONTRATS

The presented financial analysis foresaw sales of gold made directly for the refiners with income realized in the time of the sale. There are no gold sales foreseen in advance in the present financial model.

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20.0 CONCLUSION AND RECOMMENDATION

20.1 Conclusion Cambior steers activities of exploration French Guyana for about ten years and established excellent relations with the representatives of the French state, the local governments and the business community. The feasibility study does not address political risks nor social because French Guyana is a French department and because France is a state of recognized right and protects social rights. The study does not assume insurance risk policy. The following statements summarize the specific points to the project as well as the main conclusions: The information as well as the geologic model insure a calculation of the resources and the reserves of high quality. The portail of drilling, the quantity and the quality control of samples answer the criteria of calculations specified by the National Instrument 43-101. The mining plan assumes the geotechnical conditions determined by external consultants and takes into accounts the weather conditions of French Guiana as well as the peculiarities of the work legislation The mineralurgical process, the mining design and the operating costs estimate are function of preliminary essays made by external consultants, environmental conditions to be respected and economic parameters of French Guiana. Direct access to the site needs to be developed and the investments as well as the rule authorizing their realization are assumed in the feasibility study. The capital cost answer to a degree of precision of feasibility study with the aim of banking finances and are based on invitations to tender or precise calculations based on recent experiences of major infrastructures construction located in a similar environment. The authorizations to exploit appear among the stages to be crossed for the start up of the project and the schedule of due dates of investment of the feasibility study considers the costs and the stages of realization of the demands of permits. The authorizations to exploit appear among the beginning stages for the start up of the project and the schedule of due dates of investment of the feasibility study considers the costs and the stages of realization of the permit request. The mining concession was granted to CBJ-CAIMAN by decree of Prime Minister of France on November 26th, 2004. The authorizations to exploit are expected for the end from the second quarter of 2006.

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20.2 Recommendation After the exam of the feasibility study of the project Camp Caiman, deposited by CBJ-CAIMAN.S A.S., separate subsidiary of Cambior Inc, with the board of directors of Cambior inc, on August 5th, 2005, this last one has approved the feasibility study of the project Camp Caiman and its subsequent development, subject to: Obtain all the exploitation permits on realistic conditions and within the framework of a reasonable schedule of due dates; Otain all the operation permits on realistic conditions and within the framework of a reasonable schedule of due dates A satisfactory governmental grant, representing 25 % of the investments, by virtue of the Girardin law; Exemption of certain regional fuel taxes, the regional taxes and other retenue.

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21.0 BIBLIOGRAPHY

Scoping Study ASARCO Exploration Project in French Guiana JE Min Corp / Jacobs Engineering Group November 1997

Prefeasibility study - Camp Caiman Exploration Project in French Guiana ASARCO April 1999 Estimation gostatistique du Gisement de Camp Caiman BRGM Raymonde Blanchin Juin 2001 Rapport de qualification des proprits aurifres de Guyane franaise de la corporation Hope Bay GEOSTAT Systmes International Inc. avril 2002

Initial Assessment of the Camp Caiman Project in French Guiana CSMA Consultants Limited July 2003

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22.0 APPROVAL & SIGNATURES

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23.0 CERTIFICATES OF QUALIFICATIONS

PATRICK GODIN

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FRANOIS VIENS

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ELZAR BELZILE

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FRANCIS CLOUSTON

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DENIS HAMEL

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